WORKING CAPITAL AS AN ENTERPRISE VALUE ASSESSMENT TOOL

The valuation of an entity in off-exchange transactions involves the use of different techniques. Nevertheless, none of them guarantees the most accurate result. Therefore, it is very difficult to choose one evaluation method. Both investors, corporate managers, financial professionals, portfolio managers, and securities analysts should have a basic understanding of the process of evaluating companies. To that end, professionals recommend evaluating a company’s financial reports to detect its financial position and solvency. According to the methods of financial analysis, working capital is one of the solvency ratios, which describes the value of resources that remain after the company’s current liabilities have been bared. The research study is aimed at determining the impact of changes in working capital on the valuation of a company. In order to achieve the aim and confirm or deny the hypothesis, the methodological basis for the research study was developed, necessary information was collected, calculations were performed using data from companies listed on Nasdaq OMX Riga, and the obtained results were analysed. Literature review and economic and statistical analysis, including the SPSS method for assessing the effects of working capital and stock price, were used in the research.

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Insights from the failure of the Countrywide Financial Corporation

International Journal of Managerial Finance ◽

10.1108/ijmf-12-2012-0131 ◽

2014 ◽

Vol 10 (1) ◽

pp. 115-136

Author(s):

Willoe Freeman ◽

Peter Wells ◽

Anne Wyatt

Keyword(s):

Financial Distress ◽

Financial Management ◽

Stock Price ◽

Future Research ◽

Financial Risks ◽

Asset Securitization ◽

Mortgage Loans ◽

Financial Reports ◽

Content Type ◽

The Impact

Purpose – This paper aims to evaluate the business activities, financial reports, and management compensation practices of Countrywide Financial Corporation (Countrywide) in the period preceding the company's financial distress and leading to its eventual takeover by Bank of America in 2008. This analysis provides a number of insights into the risks that Countrywide was exposed to which may guide future research and financial management. Design/methodology/approach – Case study evaluating the failure of Countrywide Financial Corporation. Findings – First, Countrywide was highly reliant upon the securitization of mortgage loans to finance its activities and this was apparent in the financial reports. Second, these securitization transactions exposed Countrywide to significant financial risks, including the risk inherent in the uncertain values of residual interests and warrantees. Problematically, these risks were not transparently reflected in the financial reports, as confirmed by the lag in the timing of stock price responses. This untimely market response suggests the equity market was not aware of Countrywide's risk exposures until shortly before the company's solvency crisis. Third, the compensation practices of Countrywide encouraged and rewarded management for exposing the firm to significant risks. Practical implications – This paper provides insights into financial management that are relevant for researchers and professionals. Originality/value – This paper provides insights for researchers and practitioners relating to the impact of asset securitization on business risk and how these business activities and risks are disclosed in the financial reports.

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Impact on Stock Price by the Inclusion to and Exclusion from CNX Nifty Index

Global Business Review ◽

10.1177/097215091101300103 ◽

2012 ◽

Vol 13 (1) ◽

pp. 39-50 ◽

Cited By ~ 5

Author(s):

M. Selvam ◽

G. Indhumathi ◽

J. Lydia

Keyword(s):

Stock Market ◽

Stock Prices ◽

Stock Price ◽

Research Study ◽

Stock Exchange ◽

Valuation Effect ◽

Index Maintenance ◽

Indian Stock Market ◽

The Impact ◽

Indian Perspective

Changes in an index are a regular phenomenon and they take place due to the inclusion and exclusion of stocks from the index. The inclusion or exclusion of stocks creates great impact on the value of the firm. However, these changes are simply a short-lived event with no permanent valuation effect. The present research study analyzed the impact of the inclusion into and exclusion of certain stocks from National Stock Exchange (NSE) S&P CNX Nifty index with Indian perspective. The study provides evidence on whether the announcements of Nifty index maintenance committee have any information content. This will also demonstrate the efficiency of Indian stock market with particular reference to NSE. The study revealed that on an average, no permanent effects were observed on stock prices. It is also found from the study that the NSE reacted unfavourably to the inclusion and exclusion of stocks and it is impossible to earn any excess returns where the particular stocks are included or excluded from the index.

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The change in investor reaction to 10-K filings after Regulation Full Disclosure and the Sarbanes–Oxley Act

Managerial Finance ◽

10.1108/mf-02-2019-0100 ◽

2019 ◽

Vol 46 (1) ◽

pp. 120-138

Author(s):

Rakesh Bharati ◽

Susan Crain ◽

Shrikant Jategaonkar

Keyword(s):

Stock Price ◽

Financial Reports ◽

Full Disclosure ◽

Content Type ◽

Sarbanes Oxley ◽

Risk Adjustment Model ◽

Long Run ◽

One Year ◽

The Impact ◽

Investor Reaction

Purpose The purpose of this paper is to examine whether the investor reaction to 10-K filings has changed since the implementation of Regulation Full Disclosure (FD) and the Sarbanes–Oxley Act (SOX) and examine whether the market still underreacts to 10-K content and exhibits the continuation of filing day returns (FDRs) documented by You and Zhang (2009) after the passage of these regulations. Design/methodology/approach The sample consists of 39,270 10-K filings over the sample period of 1996 to 2012. Performance of portfolios created based on FDRs around 10-K filings is examined. Regression models are used for multivariate analysis. Carhart αs are obtained using the four-factor risk adjustment model. Findings By comparing investor reaction to 10-K filings pre- and post-regulation, the paper shows a significant change in stock price behavior since the implementation of FD and SOX. Analogous to Burks (2011), results suggest improved price efficiency around 10-K filings. In the long-run of up to one year following the filing, the continuation of FDRs documented by You and Zhang (2009) disappears post-2000, especially after the implementation of SOX. Overall findings suggest that investors price the information in 10-K filings significantly differently after FD and SOX than before. Research limitations/implications The sample ends in 2012. Therefore, this study does not examine the implications of the Dodd-Frank Act. Originality/value The paper contributes to the literature related to the impact of FD and SOX and market reaction to filings of financial reports. The current literature documents that there is a continuation of FDRs up to a year. This paper shows that the continuation has disappeared since FD and SOX were implemented.

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Implementasi Pendidikan Berasaskan Hasil (PBH) melalui Pembelajaran Berasaskan Projek (PBPj) untuk Menilai Pencapaian Domain Kognitif Berdasarkan Topik Ekosistem Terancam

Sains Humanika ◽

10.11113/sh.v9n1-5.1189 ◽

2017 ◽

Vol 9 (1-5) ◽

Author(s):

Nitce Isa Medina Machmudi Isa ◽

Mai Shihah Abdullah

Keyword(s):

Higher Education ◽

Quantitative Research ◽

Evaluation Method ◽

Assessment Tool ◽

Project Based Learning ◽

Cognitive Domain ◽

Traditional Learning ◽

Outcome Based Education ◽

Significant Difference ◽

The Impact

The education system in Malaysia is in the process creating a paradigm shift from implementing an external evaluation to School Based Assessment (SBA). The Malaysia Education Blueprint 2015-2025 (Higher Education) or the MEB (HE) (Ministry of Higher Education, 2015) is formulated based on the vision and aspiration of Malaysia Education Development Plan (2013-2015) and National Higher Education Strategic Plan (Pelan Strategik Pengajian Tinggi Negara (PSPTN)) in educating students who are knowledgeable, skilled and talented to face the challenges of the 21st century. Shift 1 of the blueprint aims to foster graduates who are holistic, balanced and entrepreneurial in line with the National Education Philosophy. This footstep is closely applied by the Ministry of Education to develop the holistic student profile in the schools. A new evaluation combines the three domains of cognitive, affective and psychomotor instead of focusing on the cognitive domain (DC) those are taken into account in determining student's achievement. This study was conducted to identify the impact on assessment using Outcome Based Education (OBE) through the application of project-based learning (PjBL) by comparing it with the current academic achievement ranking using DC only. All domains involved were represented by academic (cognitive domain), social skills (affective domain) and manipulative skills (psychomotor domain). This study also take into account to determine the impact of students’ assessment in the cognitive domain using Outcome-based Education (OBE) through the application of Project-based Learning (PjBL) compared to Traditional Learning (TL) in the topic of ‘Threatened Ecosystem.’ This study is a quantitative research using quasi-experimental design. A total of 30 Form 4 science stream students were selected using purposive sampling. This study demonstrated that there is no significant difference between the traditional learning (TL) and project-based learning (PJBL) to evaluate students’ cognitive domain. Assessment outlined in the Outcome-based Education is a good evaluation method to be applied to the secondary Based on these findings it is proposed evaluation in OBE through PjBL method is of a better assessment tool to be applied to secondary school, preferably the science stream students. This enables them to be evaluated in a more holistic manner which is in line with the full implementation of PBS in the near future. Subsequently, students’ achievement in affective and psychomotor domains should be carried out to oversee the effect onto the holistic evaluation as outlined in OBE.

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PENGARUH ANALISIS RETURN ON EQUITY, ECONOMIC VALUE ADDED, NET WORKING CAPITAL RATIO TERHADAP HARGA SAHAM INDUSTRI MANUFAKTUR DI BURSA EFEK JAKARTA

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2006.v10.i3.409 ◽

2018 ◽

Vol 10 (3) ◽

pp. 394-408

Author(s):

Wimba Respatia

Keyword(s):

Stock Prices ◽

Stock Price ◽

Economic Value ◽

Value Added ◽

Financial Ratios ◽

Economic Value Added ◽

Working Capital ◽

Cross Sectional ◽

Return On Equity ◽

The Impact

Real stock price actually is depend on the fundamental condition of the company. Investor make some invest decision with buy some stock, before that they must consider about emiten profit, deviden, growth of sale and asset for the time frame. Beside that, company prospect in the future must be consider. Stock price influence by EVA and financial ratios. In this research we combines about the influence of financial ratios and EVA to stock prices for the manufacture industries inIndonesia.This study aims to investigate the impact of economic value added, return on equity and net working capital ratio to the stock price of the manufacture industries in BEJ. We used purposive sampling method, with pooled cross sectional during 2001 until 2003 in 52 companies. Multiple regression model was used to test hypthesis with take 3 free variables.The test hypthesis about return on equity, economic value added and net working capital ratio in BEJ during 2001 until 2003, doesn’t put to a test. It’s identification with one variable wich is doesn’t give the influence to the stock price in manufacture industries, the variable is return on equity ratios and the other variables which are give the influence to the stock price are : economic value added and net working capital ratio.

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Application of Integrated Watershed Management Measures to Minimize the Land Use Change Impacts

Water ◽

10.3390/w13152039 ◽

2021 ◽

Vol 13 (15) ◽

pp. 2039

Author(s):

Fatemeh Rajaei ◽

Reza Dahmardeh Behrooz ◽

Ebrahim Ahmadisharaf ◽

Saman Galalizadeh ◽

Branislav Dudic ◽

...

Keyword(s):

Land Use ◽

Land Use Planning ◽

Agricultural Development ◽

Evaluation Method ◽

Assessment Tool ◽

Anthropogenic Activities ◽

Nitrate Pollution ◽

Nutrient Reduction ◽

Business As Usual ◽

The Impact

Non-point source pollution is a major factor in excessive nutrient pollution that can result in the eutrophication. Land use/land cover (LULC) change, as a result of urbanization and agricultural intensification (e.g., increase in the consumption of fertilizers), can intensify this pollution. An informed LULC planning needs to consider the negative impacts of such anthropogenic activities to minimize the impact on water resources. The objective of this study was to inform future land use planning by considering nutrient reduction goals. We modeled the LULC dynamics and determined the capacity for future agricultural development by considering its impacts on nitrate runoff at a watershed scale in the Tajan River Watershed in northeastern Iran. We used the Soil and Water Assessment Tool (SWAT) to simulate the in-stream nitrate concentration on a monthly timescale in this watershed. Historical LULCs (years 1984, 2001 and 2010) were derived via remote sensing and were applied within the Land Change Modeler to project future LULC in 2040 under a business-as-usual scenario. To reduce nitrate pollution in the watershed and ecological protection, a conservation scenario was developed using a multi-criteria evaluation method. The results indicated that the implementation of the conservation scenario can substantially reduce the nitrate runoff (up to 72%) compared to the business-as-usual scenario. These results can potentially inform regional policy makers in strategic LULC planning and minimizing the impact of nitrate pollution on watersheds. The proposed approach can be used in other watersheds for informed land use planning by considering nutrient reduction goals.

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XBRL Adoption and Capital Market Information Efficiency

Journal of Global Information Management ◽

10.4018/jgim.20211101oa44 ◽

2021 ◽

Vol 29 (6) ◽

pp. 0-0

Keyword(s):

Capital Market ◽

Stock Price ◽

Specific Information ◽

Market Information ◽

Global Business ◽

Financial Reports ◽

Stock Price Synchronicity ◽

Information Efficiency ◽

Business Reporting ◽

The Impact

As a common standard for global business reporting, eXtensible Business Reporting Language (XBRL) can make up for the deficiencies of traditional financial reports in terms of standardized disclosure and information use costs, and provide firm-specific information to report users, reduce the level of corporate stock price synchronicity, and then improve capital market information allocation efficiency. Based on the financial data of Chinese listed companies from 2005 to 2011, this paper mainly focuses on the impact of XBRL adoption on stock price synchronicity.

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XBRL Adoption and Capital Market Information Efficiency

Journal of Global Information Management ◽

10.4018/jgim.20211101.oa35 ◽

2021 ◽

Vol 29 (6) ◽

pp. 1-18

Author(s):

Lei Ruan ◽

Heng Liu ◽

Sangbing Tsai

Keyword(s):

Capital Market ◽

Stock Price ◽

Specific Information ◽

Market Information ◽

Global Business ◽

Financial Reports ◽

Stock Price Synchronicity ◽

Information Efficiency ◽

Business Reporting ◽

The Impact

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ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI HARGA SAHAM DENGAN NILAI PERUSAHAAN SEBAGAI VARIABEL INTERVENING

Jurnal Riset Ekonomi dan Bisnis ◽

10.26623/jreb.v11i1.1076 ◽

2018 ◽

Vol 11 (1) ◽

pp. 40 ◽

Cited By ~ 1

Author(s):

Danarji Nirmolo ◽

Kesi Widjajanti

Keyword(s):

Firm Value ◽

Stock Price ◽

Stock Exchange ◽

Test Statistic ◽

Financial Reports ◽

Dividend Payout ◽

Purposive Sampling ◽

Analysis Technique ◽

Equity Ratio ◽

The Impact

Tujuan penelitian ini adalah untuk menganalisis pengaruh dari variabel debt to equity ratio (DER), dividend payout ratio (DPR), earning per share (EPS) terhadap nilai perusahaan (PBV) dan pengaruh DER, DPR, EPS, dan PBV terhadap harga saham pada perusahaan yang tercatat dalam indeks LQ45 di Bursa Efek Indonesia periode 2014 -2017. Penelitian menggunakan metode purposive sampling untuk pengambilan sampel. Data diperoleh berdasarkan data laporan keuangan perusahaan dan laporan statistik tahunan yang berasal dari www.idx.co.id, diperoleh jumlah sampel sebanyak 30 perusahaan. Teknik analisis yang digunakan adalah analisis regresi data panel. Berdasarkan uji statistik F menunjukkan bahwa kedua model memenuhi kriteria fit karena memiliki nilai signifikansi yang kurang dari α 0,05. Sedangkan berdasarkan uji statistik t menunjukkan bahwa debt to equity ratio berpengaruh positif dan signifikan terhadap nilai perusahaan karena memiliki nilai signifikansi kurang dari α 0,05. Sedangkan variabel dividend payout ratio dan earning per share tidak berpengaruh signifikan terhadap nilai perusahaan. Variabel debt to equity ratio tidak berpengaruh signifikan terhadap harga saham, sedangkan dividend payout ratio berpengaruh negatif dan signifikan terhadap harga saham. Earning per share dan nilai perusahaan berpengaruh positif dan signifikan terhadap harga saham. The purpose of this study is to analyze the impact of the variables debt to equity ratio (DER), dividend payout ratio (DPR), and earning per share (EPS) toward firm value (PBV) and the influence of DER, DPR, EPS, and PBV toward price stock on companies listed in the LQ45 index on the Indonesia Stock Exchange in the 2014 - 2017. Research using purposive sampling method for taking samples. Data obtained from company financial reports and yearly statistic reports of Indonesia Stock Exchange listed at IDX (www.idx.co.id), obtained 30 samples of firms. Analysis technique used is panel data regression analysis. Based on the test statistic F indicates that both of the model is fit because has a significance value less than 0,05 of α. Meanwhile, based on statistical t test showed that debt to equity ratio has positive and significant impact on firm value because it has a significance value less than 0,05 of α although dividend payout ratio and earning per share don’t have significant impact on firm value. Meanwhile, debt to equity ratio doesn’t have significant impact on stock price but dividend payout ratio has negative and significant impact on stock price. Earning per share and firm value have positive and significant impact on stock pric

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PENGARUH ANALISIS RETURN ON EQUITY, ECONOMIC VALUE ADDED, NET WORKING CAPITAL RATIO TERHADAP HARGA SAHAM INDUSTRI MANUFAKTUR DI BURSA EFEK JAKARTA

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2006.v10.i3.2207 ◽

2017 ◽

Vol 10 (3) ◽

pp. 394

Author(s):

Wimba Respatia

Keyword(s):

Stock Prices ◽

Stock Price ◽

Economic Value ◽

Value Added ◽

Financial Ratios ◽

Economic Value Added ◽

Working Capital ◽

Cross Sectional ◽

Return On Equity ◽

The Impact

Real stock price actually is depend on the fundamental condition of the company. Investor make some invest decision with buy some stock, before that they must consider about emiten profit, deviden, growth of sale and asset for the time frame. Beside that, company prospect in the future must be consider. Stock price influence by EVA and financial ratios. In this research we combines about the influence of financial ratios and EVA to stock prices for the manufacture industries in Indonesia.This study aims to investigate the impact of economic value added, return on equity and net working capital ratio to the stock price of the manufacture industries in BEJ. We used purposive sampling method, with pooled cross sectional during 2001 until 2003 in 52 companies. Multiple regression model was used to test hypthesis with take 3 free variables.The test hypthesis about return on equity, economic value added and net working capital ratio in BEJ during 2001 until 2003, doesn’t put to a test. It’s identification with one variable wich is doesn’t give the influence to the stock price in manufacture industries, the variable is return on equity ratios and the other variables which are give the influence to the stock price are : economic value added and net working capital ratio.

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