Operating Cash Flow, Earning Response Coefficient, and Fixed Asset Revaluation: Study on Manufacturing Company

Matters about financing decision based on pecking order theory’s hierarchy are currently appealing. This research strives to discover how corporate’s fixed asset investment reacts to cash flow, debt issuance, and equity issuance. Researcher uses 75 samples of manufacturing company in Indonesia during 2010-2014 period with 199 firm-year observation. Multiple linear regression’s result indicates that cash flow and debt issuance have influence towards corporate’s fixed asset investment, but the equity issuance have no influence towards corporate’s fixed asset investment. Also regression coefficient exhibits that manufacturing company in Indonesia follows pecking order theory’s hierarchy. Cash flow’s influence towards fixed asset investment is more significant than debt issuance’s, and debt issuance’s influence is stronger than equity issuance. This points out that corporate’s fixed asset investment is more sensitive towards cash flow (internal fund) compared to debt issuance (external fund), and so is debt issuance is more sensitive compared to equity issuance. With all that in mind, it is concluded that manufacturing company in Indonesia follows pecking order theory in terms of financing decision, which uses internal fund at first then started to use external fund if deemed necessary.

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Leverage, Arus Kas Operasi, Ukuran Perusahaan, Intensitas Aset Tetap dan Revaluasi Aset Tetap

Paediatrica Indonesiana ◽

10.24036/wra.v9i1.111817 ◽

2021 ◽

Vol 9 (1) ◽

pp. 1

Author(s):

Resti Yulistia M ◽

Nurul Dwi Septiyani ◽

Arie Frinola Minovia ◽

Yunilma Yunilma

Keyword(s):

Cash Flow ◽

Firm Size ◽

Cost Model ◽

Fixed Asset ◽

Asymmetry Information ◽

Fixed Assets ◽

Political Cost ◽

Negative Effect ◽

Size Firm ◽

Operating Cash Flow

Since Indonesian accounting standards allow companies to choose between cost model and revaluation model on their fixed asset, there are still few companies that revalued their assets. This study examines what factors make banking companies choose to revaluate fixed asset, that are contracting factors (leverage, operating cash flow), political factors (firm size) and asymmetry information (intensity of fixed assets). By using logistic regression, the result of this study showed that firm size and fixed asset intensity had a positive effect on the company choice to revaluate fixed assets, while leverage had a negative effect on fixed asset revaluation. This study support early research with regard to contracting, political cost and asymmetry information. This study failed to find the effect of operating cash flow on fixed asset revaluation. Based on the results of this study, banks should consider leverage, company size and the intensity of fixed assets more than cash flow when choosing to revaluate fixed assets. Keywords: Leverage; Operating Cash Flow; Size Firm; Fixed Asset Intensity; Fixed Asset Revaluation

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Faktor Fundamental dan Abnormal Return Perusahaan Makanan dan Minuman

Jurnal Riset Akuntansi & Perpajakan (JRAP) ◽

10.35838/jrap.v3i02.131 ◽

2016 ◽

Vol 3 (02) ◽

pp. 131-148

Author(s):

Warsono Warsono

Keyword(s):

Cash Flow ◽

Abnormal Return ◽

Stock Return ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Return On Equity ◽

Food And Beverages ◽

Price Earnings Ratio ◽

Equity Ratio ◽

Operating Cash Flow

A B S T R A C T Financial statement is one of source information that is needed for the economic decision maker, especially for stock exchange performers. It reflects company’s performance during the period. The other one is statement of cash flow from operating activities that reflect their performance on their daily activities. This research aim to get empirical evidence on the influence of financial performance that are represented by operating cash flow, price earnings ratio, return on equity, debt to equity ratio, and size to the abnormal stock return. This research take 12 samples of food and beverages companies which are listed in Indonesia Stock Exchange from 2011-2015. The method used in the research by using multiple linear regression analysis. This study concludes that operating cash flow have no influence to the abnormal stock return. Price earnings ratio, return on equity, debt to equity ratio, and size significantly effect toward abnormal return. Size has a dominant influence to the abnormal stock return. It means that size is the best representation of independent variables to appraise that abnormal stock return on food and beverages company. A B S T R A K Laporan keuangan merupakan salah satu sumber informasi yang diperlukan untuk pengambilan keputusan ekonomi, terutama untuk investor di bursa saham. Hal ini mencerminkan kinerja perusahaan selama periode tersebut. Informasi lain yang penting adalah laporan arus kas dari aktivitas operasi yang mencerminkan kinerja mereka pada kegiatan sehari-hari mereka. Penelitian ini bertujuan untuk mendapatkan bukti empiris tentang pengaruh kinerja keuangan yang diwakili oleh arus kas operasi, Price Earning Ratio, Return on Equity, Rasio hutang terhadap ekuitas, dan ukuran untuk return saham yang abnormal. Penelitian ini mengambil 12 sampel perusahaan makanan dan minuman yang terdaftar di Bursa Efek Indonesia dari tahun 2011-2015. Metode yang digunakan dalam penelitian ini dengan menggunakan analisis regresi linier berganda. Penelitian ini menyimpulkan bahwa arus kas operasi tidak memiliki pengaruh terhadap return saham yang abnormal. Price Earning Ratio, Return on Equity, Debt to Equity ratio, dan ukuran secara signifikan mempengaruhi terhadap return abnormal. Ukuran perusahaan memiliki pengaruh dominan terhadap return saham yang abnormal. Ini berarti bahwa ukuran adalah representasi terbaik dari variabel independen untuk menilai bahwa return saham abnormal pada makanan dan minuman perusahaan. JEL Classification: G14, F62

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PENGARUH NILAI PERUSAHAAN, KESEMPATAN BERTUMBUH PERUSAHAAN DAN ARUS KAS OPERASI TERHADAP RETURN SAHAM DIMASA YANG AKAN DATANG

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v10i2.4557 ◽

2019 ◽

Vol 10 (2) ◽

pp. 149

Author(s):

Seto Makmur Wibowo

Keyword(s):

Multiple Regression ◽

Cash Flow ◽

Consumer Goods ◽

Firm Value ◽

Stock Return ◽

Stock Exchange ◽

Manufacturing Companies ◽

Growth Opportunity ◽

Operating Cash Flow ◽

Consumer Goods Industry

This study aims to analyze the iqfluence offirm value, the opportunity to grow the company and future operating cash flow to future stock return. The population of this study is manufacturing companies listed in Indonesia Stock Exchange. The samples used were 23 companies which include consumer goods industry which published a report in 2009-2012. The results of this study using multiple regression showed that the firm value and operating cash flow has no effect on Future Stock Return. But the company's growth opportunity has a positive and significant impact on Future Stock Return

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Analisis Rasio Keuangan Untuk Memprediksi Kondisi Financial Distress Perusahaan Menufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2010-2014

Kajian Bisnis STIE Widya Wiwaha ◽

10.32477/jkb.v24i2.222 ◽

2017 ◽

Vol 24 (2) ◽

pp. 131-143

Author(s):

Achmad Tjahjono ◽

Intan Novitasari

Keyword(s):

Cash Flow ◽

Financial Distress ◽

Sampling Method ◽

Stock Exchange ◽

Observation Data ◽

Return On Assets ◽

Manufacturing Company ◽

Research Population ◽

Independent Variable ◽

Operating Cash Flow

This study to examine the effect of liquidity to financial distress manufacturing company as measured by current assets, effect of profitability to financial distress manufacturing company as measured by return on assets, the effect of leverage to financial distress manufacturing company as measured by debt ratio, the effect of operating cash flow to financial distress manufacturing company as measured by the operating cash flow divided with current liability. Research population are all manufacturing company that listed in the Indonesia Stock Exchange in 2010-2014. The sampling method in this research is purposive sampling. Samples are 47 companies with as many as 235. The number of observation data analysis method used is logistic regression. The results showed that no effect on the liquidity of financial distress with significant 0.111>0.05. Effect on the profitability of financial distress with significant 0.000<0.05. Leverage does not affect the financial distress with significant 0.167>0.05. Operating cash flow does not affect the financial distress with significant 0.875>0.05. aximum likelihood on effect simultaneous between liquidity, profitability, leverage and operating cashflow to financial distress with significant 0.000<0.05. Koefisient determinasi examination shows value 0.542 that mean 54.2% dependent variable can be explained from independent variable and 45.8% influenced by other variable outside the model.

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Pengaruh Leverage, Arus kas Operasi, Ukuran Perusahaan dan Fixed Asset Intensity terhadap Keputusan Revaluasi Aset tetap (Studi Empiris pada Bank Umum yang Terdaftar di BEI Periode 2012 s.d. 2016)

Jurnal Ilmiah Akuntansi Kesatuan ◽

10.37641/jiakes.v5i2.84 ◽

2018 ◽

Vol 5 (2) ◽

pp. 129-142

Author(s):

Sudrajat Sudradjat ◽

Nurmala Ahmar ◽

JMV Mulyadi

Keyword(s):

Commercial Bank ◽

Cash Flow ◽

Financial Reporting ◽

Firm Size ◽

Commercial Banks ◽

Financial Statements ◽

Fair Value ◽

Fixed Asset ◽

Fixed Assets ◽

Operating Cash Flow

Implementation of financial statement preparation for public companies in Indonesia has shifted from Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS) starting in 2012. GAAP practices emphasize to users to find the best terms for a transaction, while IFRS emphasizes principles of fair value in the presentation of financial statements. The Financial Position Report which has adopted IFRS requires that the fixed assets be presented at fair value, so that the financial statements presented to external parties reflect the current value of fixed assets owned by the company. This study aims to investigate the effect of leverage, operating cash flow, firm size and fixed asset intensity to the decision of commercial banks to conduct a revaluation. Commercial Bank that became the object of research is a commercial bank listed on the BEI with observation period starting in 2012 - 2016. Independent variable are leverage, operating cash flow, firm size and fixed asset intensity. Testing on the research model using Hosmer & Lemeshow Test, Omnibus, Nagelker R Square. While testing the hypothesis using Logistic Regression Test. The results of the analysis in hypotesis testing showed that leverage, firm size and fixed asset intensity significantly influence the decision of commercial banks to conduct a revaluation. While operating cash flow has no effect on the decision of commercial banks to conduct a revaluation.

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Does the Company's Scale, Fixed Asset Intensity and Operating Cash Flow Affect Asset Revaluation?

Jurnal Analisis Bisnis Ekonomi ◽

10.31603/bisnisekonomi.v18i1.3342 ◽

2020 ◽

Vol 18 (1) ◽

pp. 1-13

Author(s):

Rr. Tjahjaning Poerwati ◽

Pancawati Hardiningsih ◽

Caecilia Srimindarti ◽

Retno Ika Sundari

Keyword(s):

Cash Flow ◽

Large Scale ◽

Stock Exchange ◽

Time Frame ◽

Manufacturing Companies ◽

Fixed Asset ◽

Real Situation ◽

Fixed Assets ◽

Operating Cash Flow ◽

Practical Implications

Fixed assets that are measured using cost may have lost their relevance because they do not reflect the real situation. This study aims to analyze the factors that influence the company to revaluate its fixed assets. The sample of this study consisted of 426 manufacturing companies listed on the Indonesia Stock Exchange in the 2015-2018 time frame. The research sample was selected by purposive sampling. Technical analysis of the study used logistic regression. The results of this study found that only fixed asset intensity and operating cash flow affect the revaluation of fixed assets and the scale of the company does not affect the decision of the revaluation of fixed assets. The implication of the results of the study shows that large-scale companies do not always revaluate fixed assets because they can cause taxes on revaluations that must be borne by the company. In addition, the practical implications also show that the Indonesian government must increase the number of licensed appraisers to compensate for the increasing number of companies adopting revaluation models.

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ANALISIS KEBIJAKAN PERUSAHAAN MELAKUKAN REVALUASI ASET TETAP

Jurnal Riset Manajemen Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha Program Magister Manajemen ◽

10.32477/jrm.v8i2.285 ◽

2021 ◽

Vol 8 (2) ◽

pp. 47-65

Author(s):

Achmad Tjahjono

Keyword(s):

Cash Flow ◽

Fair Value ◽

Company Size ◽

Fixed Asset ◽

Financial Reports ◽

True Value ◽

Asset Value ◽

Fixed Assets ◽

Operating Cash Flow ◽

Company Growth

Fixed asset recognition is one of the main problems in fixed asset accounting. The use of cost does not reflect the true value of the asset so that the asset value is irrelevant. The IFRS convergence PSAK allows the use of the fair value (revaluation method) of fixed assets to reflect the current price so that the asset value becomes higher. Thus financial reports will provide more relevant information to users of financial statements to be used as a basis for decision making. This study aims to determine the effect of leverage, liquidity, company size, decrease in operating cash flow, fixed asset intensity, company growth on company policies to revaluate fixed assets in banking companies listed on the Indonesia Stock Exchange in 2015-2019. The populations of this study was taken using purposive sampling method with a total of 42 companies. The data used are secondary data in the form of annual financial reports and analyzed using logistic regression analysis techniques with a significance level of 5%. The results of this study are leverage, liquidity, and a partial decrease in operating cash flow have a positive and insignificant effect on fixed asset revaluation. Company size, fixed asset intensity, and company growth partially have a positive and significant effect on fixed asset revaluation. Taken together, the variables have a significant effect and are able to explain the variability to the dependent variable by 33,4%.

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Faktor Fundamental dan Abnormal Return Perusahaan Makanan dan Minuman

Jurnal Riset Akuntansi & Perpajakan (JRAP) ◽

10.35838/jrap.2016.003.02.11 ◽

2016 ◽

Vol 3 (02) ◽

pp. 131-148

Author(s):

Warsono Warsono

Keyword(s):

Cash Flow ◽

Abnormal Return ◽

Stock Return ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Return On Equity ◽

Food And Beverages ◽

Price Earnings Ratio ◽

Equity Ratio ◽

Operating Cash Flow

A B S T R A C T Financial statement is one of source information that is needed for the economic decision maker, especially for stock exchange performers. It reflects company’s performance during the period. The other one is statement of cash flow from operating activities that reflect their performance on their daily activities. This research aim to get empirical evidence on the influence of financial performance that are represented by operating cash flow, price earnings ratio, return on equity, debt to equity ratio, and size to the abnormal stock return. This research take 12 samples of food and beverages companies which are listed in Indonesia Stock Exchange from 2011-2015. The method used in the research by using multiple linear regression analysis. This study concludes that operating cash flow have no influence to the abnormal stock return. Price earnings ratio, return on equity, debt to equity ratio, and size significantly effect toward abnormal return. Size has a dominant influence to the abnormal stock return. It means that size is the best representation of independent variables to appraise that abnormal stock return on food and beverages company. A B S T R A K Laporan keuangan merupakan salah satu sumber informasi yang diperlukan untuk pengambilan keputusan ekonomi, terutama untuk investor di bursa saham. Hal ini mencerminkan kinerja perusahaan selama periode tersebut. Informasi lain yang penting adalah laporan arus kas dari aktivitas operasi yang mencerminkan kinerja mereka pada kegiatan sehari-hari mereka. Penelitian ini bertujuan untuk mendapatkan bukti empiris tentang pengaruh kinerja keuangan yang diwakili oleh arus kas operasi, Price Earning Ratio, Return on Equity, Rasio hutang terhadap ekuitas, dan ukuran untuk return saham yang abnormal. Penelitian ini mengambil 12 sampel perusahaan makanan dan minuman yang terdaftar di Bursa Efek Indonesia dari tahun 2011-2015. Metode yang digunakan dalam penelitian ini dengan menggunakan analisis regresi linier berganda. Penelitian ini menyimpulkan bahwa arus kas operasi tidak memiliki pengaruh terhadap return saham yang abnormal. Price Earning Ratio, Return on Equity, Debt to Equity ratio, dan ukuran secara signifikan mempengaruhi terhadap return abnormal. Ukuran perusahaan memiliki pengaruh dominan terhadap return saham yang abnormal. Ini berarti bahwa ukuran adalah representasi terbaik dari variabel independen untuk menilai bahwa return saham abnormal pada makanan dan minuman perusahaan. JEL Classification: G14, F62

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Pengaruh ROE, EPS, OCF, Size, DER, CR dan Growth Terhadap Kebijakan Dividen pada Perusahaan Manufaktur di Bursa Efek Indonesia (BEI)

Akuntansi dan Manajemen ◽

10.30630/jakmenpnp.14.2.177 ◽

2019 ◽

Vol 14 (2) ◽

pp. 80

Author(s):

Crystha Armereo ◽

Pipit Fitri Rahayu

Keyword(s):

Cash Flow ◽

Dividend Policy ◽

Regression Result ◽

Manufacturing Companies ◽

Current Ratio ◽

Dividend Payout ◽

Return On Equity ◽

Earnings Per Share ◽

Equity Ratio ◽

Operating Cash Flow

Abstract The objective of this research is to identify the influence of return on equity, earnings per share, operating cash flow, size, debt to equity ratio, current ratio, and growth to dividend payout. Data collected from manufacturing companies that listed on Indonesian Stock Exchange for three years period 2014 to 2016. Sample selected by using purposive sampling method. There are 38 companies meet the criteria and used as sample. The statistical method used in this research is multiple regression. Result of this research showed that return on equity, earnings per share, and growth have influence dividend payout but operating cash flow, size, debt to equity ratio, and current ratio have no influence towards dividend policy. Keywords: Dividend Policy, Return on Equity, Earnings per Share, Current Ratio, Operating Cash Flow Size

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