scholarly journals The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms

2019 ◽  
Vol 10 (1) ◽  
pp. 1-13
Author(s):  
R Heru Kristanto HC ◽  
Mamduh M Hanafi ◽  
Wayan Nuka Lantara
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Firm Value ◽  
Fixed Effects ◽  
Cash Holdings ◽  
Cash Holding ◽  
Fixed Effects Model ◽  
Publicly Traded ◽  
Dynamic Panel ◽  
Panel Fixed Effects

The aim of this paper is to examine the effect of cash, optimal cash holding, deviation from target cash (the target adjustment model) on the firm value. This research uses a sample of Indonesian publicly traded firms for the period 2001-2017 (3,349 observation). This paper uses a dynamic panel fixed effects model to estimate optimal cash holdings. Hypothesis testing uses GLS fixed effect and interaction effect uses regression moderated analysis. Research finds that: first, cash, optimal cash, and deviation from target cash have an effect on the firm value. Second, corporate governance moderates the effect of cash, optimal cash, and deviation from target cash on the firm value. Third, investment positively moderates the effect of cash on the firm value. Investment negatively moderates the effect of optimal cash, deviation from target cash on the firm value. Debt negatively moderates the effect of cash, optimal cash on the firm value. Debt positively moderates the effect of deviation from target cash on the firm value. 

scholarly journals CORPORATE GOVERNANCE, PROFITABILITY, AND FIRM VALUE STUDY ON THE INDONESIAN SHARIA STOCK INDEX

2020 ◽  
Vol 6 (2) ◽  
pp. 292
Author(s):  
Sutrisno Sutrisno
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Board Of Directors ◽  
Firm Value ◽  
Fixed Effects ◽  
Total Sample ◽  
Stock Index ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Fixed Effects Model

The purpose of this study is to examine the effect of corporate governance mechanisms and profitability on firm value. The corporate governance mechanism consists of a board of directors, a board of commissioners, managerial ownership, and institutional ownership. Firm value is measured by Tobin's Q, while profitability is measured by return on assets. The population in this study were companies listed on the Indonesian Sharia Stock Index with a total sample of 103 companies taken by purposive sampling method. The observation period is for five years from 2015 to 2019. To test the hypothesis, the author applies panel data regression analysis. In selecting the panel data model, after being tested, the best model is the fixed effect model. The results of the research based on the fixed effects model show that the board of commissioners has a significant but negative effect on firm value, while the board of directors and profitability and ownership of institutions have a significant and positive effect on firm value, but managerial ownership has no significant effect on firm value.

scholarly journals Cultural and Creative Cities and Regional Economic Efficiency: Context Conditions as Catalyzers of Cultural Vibrancy and Creative Economy

2021 ◽  
Vol 13 (13) ◽  
pp. 7150
Author(s):  
Silvia Cerisola ◽  
Elisa Panzera
Keyword(s):  
Fixed Effects ◽  
Local Context ◽  
Creative Economy ◽  
Fixed Effects Model ◽  
Creative Cities ◽  
Economic Output ◽  
Innovative Methodology ◽  
Holistic Conception ◽  
Panel Fixed Effects ◽  
The Impact

Following the hype that has been given to culture and creativity as triggers and enhancers of local economic performance in the last 20 years, this work originally contributes to the literature with the objective of assessing the impact of cultural and creative cities (CCCs) on the economic output of their regions. In this sense, the cultural and creative character of cities is considered a strategic strength and opportunity that can spillover, favoring the economic system of the entire regions in which the cities are located. Through an innovative methodology that exploits a regional production function estimated by a panel fixed effects model, the effect of cities’ cultural vibrancy and creative economy on the output of their regions is econometrically explored. The data source is the Cultural and Creative Cities Monitor (CCCM) provided by the JRC, which also allows the investigation of the possible role played by the enabling environment in catalyzing the action of cultural vibrancy and creative economy. The results are thoroughly examined: especially through cultural vibrancy, CCCs strategically support the output of their region. This is particularly the case when local context conditions—such as human capital and education, openness, tolerance and trust, and quality of governance—catalyze their effect. Overall, CCCs contribute to feeding a long-term self-supporting system, interpreted according to a holistic conception that includes economic, social, cultural, and environmental domains.

scholarly journals Pengaruh Sektor Tersier terhadap Pertumbuhan Ekonomi Kawasan Barat dan Timur Indonesia

2021 ◽  
Vol 2021 (1) ◽  
pp. 782-791
Author(s):  
Pramudya Kusuma ◽  
Aisyah Fitri Yuniasih
Keyword(s):  
Least Squares ◽  
Fixed Effects ◽  
Generalized Least Squares ◽  
Fixed Effects Model ◽  
Panel Fixed Effects

Sektor tersier merupakan sektor lapangan usaha yang menghasilkan produk berupa jasa. Sektor tersier sendiri telah mendominasi perekonomian di Indonesia. Perubahan struktural ekonomi menuju sektor tersier diperkirakan mampu memengaruhi pertumbuhan ekonomi sehingga dilakukan penelitian untuk menganalisis pengaruh sektor tersier terhadap pertumbuhan ekonomi provinsi-provinsi di Indonesia. Analisis yang dilakukan membagi provinsi-provinsi di Indonesia menjadi Kawasan Barat Indonesia (KBI) dan Kawasan Timur Indonesia (KTI). Metode yang digunakan adalah analisis data panel Fixed Effects Model dengan estimasi Feasible Generalized Least Squares. Hasil penelitian menunjukkan bahwa pada KBI maupun KTI, sektor tersier yang dijelaskan oleh produktivitas tenaga kerja dan share tenaga kerja memiliki pengaruh positif terhadap pertumbuhan ekonomi. Variabel lain yang digunakan yaitu belanja langsung pemerintah memiliki pengaruh positif terhadap pertumbuhan ekonomi serta laju pertumbuhan penduduk memiliki pengaruh negatif terhadap pertumbuhan ekonomi. Peningkatan produktivitas sektor tersier dan tenaga kerja sektor tersier dapat dilakukan sebagai upaya peningkatan pertumbuhan ekonomi.

scholarly journals The Impact Of Good Corporate Governance To Manufacturing Firm’s Profitability And Firm’s Value

2016 ◽  
Vol 5 (2) ◽  
pp. 181-196 ◽  
Author(s):  
Johanes Sumarno ◽  
Sendy Widjaja ◽  
Subandriah Subandriah
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Fixed Effects Model ◽  
Good Corporate Governance ◽  
Oecd Principles ◽  
Equitable Treatment ◽  
The Impact

This paper studied the behavior of management toward the implementation of Good Corporate Governance in Indonesia to determine whether it has any influence towards profitability and its implication to the Manufacturing Firms’ value publicly listed in Indonesian Stock Exchange. There were 41 corporations who met the criteria of the survey. The data were analyzed using Panel Regression with fixed effects Model. The empirical findings show that the implementation of Corporate Governance in Indonesia has a positive, significant and direct impact toward firms’ profitability and firms’ value. Corporate Governance principles based on OECD principles that have positive and significant impact to both profitability and Firms’ Valueis Rights of Shareholders, Role of Stakeholders, Responsibilities of the Board Commissioners and Board of Directors. The principles that have significance and negative impact towards corporate profitability and value, are: Equitable treatment of shareholders and Disclosure and Transparencies. The most significant principle influencing profitability and firms’ value is Disclosure and Transparencies. Profitability plays a greater role in influencing Manufacturing Firms’ value in Indonesia. DOI: 10.15408/sjie.v5i2.3542

Cash holdings and corporate governance: an empirical study on Malaysian public listed companies

2016 ◽  
Vol 6 (4) ◽  
pp. 305
Author(s):  
Kiarash Ehtiat Karrahemi ◽  
Siti Zaleha Abdul Rasid ◽  
Rohaida Basiruddin
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Cash Holdings ◽  
Listed Companies

Bank relations, cash holdings, and firm value: evidence from Japan

2005 ◽  
Vol 28 (4) ◽  
pp. 61-73 ◽  
Author(s):  
Qi Luo ◽  
Toyohiko Hachiya
Keyword(s):  
Empirical Evidence ◽  
Firm Value ◽  
Cash Holdings ◽  
Cash Holding ◽  
Agency Conflicts ◽  
Japanese Firms

This paper tests two views of bank’s role for Japanese firms. The views are confronted with the empirical evidence, allowing them to compete to explain firm’s cash holding decisions and the implication of cash holdings on firm value. We find that firms with closer bank relations hold less cash, but some of them are over‐borrowing. Our results show that banks do not monitor their client firms and are unlikely to push the managers of the firms to take efficient actions on maximizing firm value. We discover that cash holdings cause more severe agency conflicts for the firms who have the closer relations with the banks.

scholarly journals Crowding-Out or Crowding-In: Government Health Investment and Household Consumption

2021 ◽  
Vol 9 ◽  
Author(s):  
Hao Cheng ◽  
Yu-Peng Zhi ◽  
Zi-Wei Deng ◽  
Qing Gao ◽  
Rui Jiang
Keyword(s):  
Fixed Effects ◽  
Household Consumption ◽  
Fixed Effects Model ◽  
Health Investment ◽  
Promotion Effect ◽  
Government Health ◽  
Medical Health ◽  
The Difference ◽  
The Government ◽  
Panel Fixed Effects

This paper explores the relationship of government health investment and household consumption by applying a panel fixed effects model and Sobel-Goodman mediation tests to inland Chinese provinces. The empirical results highlight that government health investment has a crowding-in effect and can thus promote household consumption. Furthermore, the promotion effect on non-medical health consumption is greater than that on medical health consumption. The promotion effect of government health investment on rural household consumption is higher than that on urban household consumption, and the promotion effect on household consumption for northern provinces is higher than that in southern provinces. This heterogeneous effect is closely related to the difference between urban and rural development; and the economic levels of the northern and South regions. The mediation tests found that government health investment mainly promotes regional economic growth, and then increases household consumption. In the economic and social development process, the government should implement more effective medical and health care measures to increase social medical and health investment to improve the consumption level of households.

scholarly journals Modifications to Corporate Constitutions in Alberta: An Empirical Study

1993 ◽  
Vol 31 (2) ◽  
pp. 263
Author(s):  
Roderick J. Wood ◽  
Murray T. Brown ◽  
Richard W. Bauman
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Legal Framework ◽  
Corporate Law ◽  
Publicly Traded ◽  
Extensive Discussion

This study examines the extent to which publicly traded Alberta corporations have included provisions in their corporate constitutions that modify or vary a corporate governance rule that would otherwise apply. Part I discusses the notion of contractual freedom in corporate law and identifies the instances in which modifications are permitted under the Alberta business corporations statute. Part II outlines the methodology used in carrying out the survey of corporate constitutions and provides a summary of the results. Part III provides a more extensive discussion of the legal framework pertaining to the rule and analyzes some of the implications arising out of the results of the survey.

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