scholarly journals Can Fundamental Analysis Support Shareholder Value In A Transitional Market? Perspectives From Egypt

2011 ◽  
Vol 5 (1) ◽  
Author(s):  
Tarek Ibrahim Eldomiaty
Keyword(s):  
Capital Investment ◽  
Shareholder Value ◽  
Balance Sheet ◽  
Debt Financing ◽  
Financial Information ◽  
Fundamental Analysis ◽  
Short Term ◽  
Income Statement ◽  
Medium Firms

This study examines the informativeness of fundamental financial information to three levels of shareholder value. In general, the results show that the fundamental financial information is quite informative to shareholders using the MB ratio as a measure of shareholder value. According to the sensitivity analysis, (1) the balance sheet items are not quite informative, (2) the income statement items are consistently informative to shareholders at the three classes, and (3) the financial ratios, as a form of co-integrated financial information, are quite informative to the high and low shareholder value classes. The results regarding the fundamental analysis indicate that (a) in the three levels of MB firms, investors are concerned with the short-term horizon, (b) in the low MB firms, the investors are concerned with the long-term horizon, (c) in the high and low MB firms, the operating and total expenses are regarded as a capital investment, (d) in the high MB firms, the trend is to finance operations using equity rather than debt financing, (e) profitability affects low MB firms only rather than high and medium firms, (f) in the high and medium MB firms, investors do not regard the elements related to firms operations, (g) in the low MB firms, investors are concerned with the effects of capital structure on firms value although the results show that dividends have a reverse effect on firms market value.

scholarly journals BANK PROFITABILITY AND MACROECONOMY: EVIDENCE FROM LITHUANIA

2017 ◽  
Vol 24 (2) ◽  
pp. 383-405 ◽  
Author(s):  
Laurynas NARUŠEVIČIUS
Keyword(s):  
Banking Sector ◽  
Short Term ◽  
Empirical Examination ◽  
Bank Profitability ◽  
Pooled Mean Group ◽  
Real Gdp ◽  
Income Statement ◽  
Main Determinants ◽  
The Relationship

The purpose of this paper is to investigate the relationship between profitability of the Lithuanian banking sector and its internal and external determinants. We use the panel error correc­tion model to assess long-term and short-term determinants of items from bank income statements (net interest income, net fee and commission income and operating expenses). The results of the pooled mean group estimator show that bank size and real GDP are the main determinants in the long-term. Meanwhile, empirical examination suggests various variables as short-term determinants of income statement items. The pooled mean group estimation technique and the analysis of sepa­rate income statement items enable us to have a better insight into the Lithuanian banking sector and determinants of its revenue and expenses.

scholarly journals An Empirical Research on Shinepukur Holdings Ltd: Strategy, Accounting, Ratio, Sensitivity and Prospective Analysis

2017 ◽  
pp. 83-92
Keyword(s):  
Real Estate ◽  
Operating Performance ◽  
Market Price ◽  
Balance Sheet ◽  
Real Estate Industry ◽  
Strategy Formulation ◽  
Short Term ◽  
Income Statement ◽  
Point Analysis ◽  
Day By Day

This paper examines how Shinepukur holdings ltd is going well or not? The major operations of the company are related to the development of lands and building apartments. Its operating performance is now going down because of the inefficient strategy formulation. The company cannot use its resources in full swings. Real estate customers purchase land or apartments on credit. Sometimes they fail to pay with in due time. Identifying the projects which customers will pay their credit within short term is important in this business. This policy is not followed by shinepukur. Moreover Managers had taken some unprofitable projects which brought negative return for the company. The company’s core businesses are Apartment project and Land project. Competition in real estate industry is increasing day by day. After du-point analysis, we have found that company’s performance is very much sensitive to its profit margin. In the valuation part we have found the company’s present of equity per share is negative where share market price is 28.50 taka in the last trading day of 2015. This figure indicates market price of share is overvalued. Investors should not buy this company’s share. In prospectus analysis we have made forecast for next three years income statement, balance sheet, cash flow statement on the basis of common size statement analysis.

scholarly journals Capital Structure and The Profitability of Listed Retail Firms

2018 ◽  
Vol 10 (1(J)) ◽  
pp. 171-181
Author(s):  
Jason Stephen Kasozi
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Order Theory ◽  
Debt Financing ◽  
Retail Sector ◽  
Short Term ◽  
Return On Assets ◽  
Pecking Order Theory ◽  
Policy Interventions

The South African retail sector continues to experience a decline in sales and returns amidst growing external competition and a drop in consumer confidence stemming from the recent credit downgrades in the country. Yet, firms in this sector appear to maintain high debt to equity levels. This study investigated whether the capital structure practices of these firms influence their profitability. A Panel data methodology, using three regression estimators, is applied to a balanced sample of 16 retail firms listed on the Johannesburg Securities Exchange (JSE) during the period 2008-2016. The analysis estimates functions relating capital structure composition with the return on assets (ROA). Results reveal a statistically significant but negative relationship between all measures of debt (short-term, long-term, total debt) with profitability, suggesting a possible inclination towards the pecking order theory of financing behaviour, for listed retail firms. Additionally, retail firms are highly leveraged yet over 75% of this debt is short-term in nature. Policy interventions need to investigate the current restrictions on long-term debt financing which offers longerterm and affordable financing, to boost returns. While this study’s methodology differs slightly from earlier studies, it incorporates vital aspects from these studies, and simultaneously specifies a possible model fit.  This helps to capture unique but salient characteristics like the transitional effects of debt financing on firm profitability.  It therefore delivers some unique findings on the financing behaviour of retail firms that both in form policy change, while stimulating further research on the phenomenon. 

Corporate social responsibility and debt financing of listed firms: a quantile regression approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
T. Mallikarjunappa
Keyword(s):  
Quantile Regression ◽  
Debt Financing ◽  
Short Term ◽  
Content Type ◽  
Leverage Ratio ◽  
Listed Firms ◽  
Conditional Mean ◽  
Natural Logarithm ◽  
Corporate Social

Purpose The purpose of the study is to examine the effect of corporate social responsibility (CSR) on debt financing (natural logarithm of debt and leverage ratios) of listed firms. Design/methodology/approach Using content analysis for data extraction, the study examines listed firms on the Bombay Stock Exchange (BSE) from 2010 to 2019 financial year. It uses a quantile regression and panel fixed effect regression as the model's application. Findings The study shows that CSR expenditure has a positive and strong correlation with debt financing (i.e. natural logarithm of long-term and short-term debts). The first findings show that CSR expenditure has a negative and statistically significant association with total leverage ratio, using conditional mean and median percentile. However, there is a positive and statistically significant association between CSR expenditure and long-term leverage ratio at the 25th and 50th percentile. The second findings show that CSR expenditure has a positive and statistically significant association with long-term debt but an insignificant association with short-term debt and total debt under a conditional mean average. The application of quantile regression addresses the values that fall outside the confidence interval and therefore document a positive and statistically significant association between CSR expenditure and debt financing (short-term debt, long-term debt and total debt) at the 25th, 50th and 75th percentile. Originality/value The introduction of quantile regression gives a novelty in CSR and debt financing study, which to the best of the authors’ knowledge, has not received any attention. Similarly, firms have better information on how to position their CSR expenditure to attract providers of debt financing.

scholarly journals Social Insurance Accounting for a Notional Defined Contribution Scheme Combining Retirement and Long-Term Care Benefits.

2018 ◽  
Vol 10 (8) ◽  
pp. 2832 ◽  
Author(s):  
Carlos Vidal-Meliá ◽  
Manuel Ventura-Marco ◽  
Juan Manuel Pérez-Salamero González
Keyword(s):  
Social Insurance ◽  
Long Term Care ◽  
Balance Sheet ◽  
Defined Contribution ◽  
Term Care ◽  
Income Statement ◽  
Accounting Model ◽  
Notional Defined Contribution ◽  
Double Entry

This paper develops a social insurance accounting model for a notional defined contribution (NDC) scheme combining retirement and long-term care (LTC) contingencies. The procedure relies on standard double-entry bookkeeping and enables us to compile a “Swedish” type actuarial balance sheet (ABS) following a framework equivalent to an open group approach. This methodology is suitable for reporting the system’s solvency status and can show periodical changes in the system’s financial position by means of an income statement. The information underpinning the actuarial valuation is based on events and transactions that are verifiable at the valuation date, without considering expected future trends. The paper also contains an illustrative example to make it easier for policymakers to understand the main advantages and difficulties of our proposal. The policy conclusions stress the need to properly report social insurance benefits to enhance transparency and sustainability and to improve decision-making because it is in the public interest to do so.

The “need to know” and the lack of online transparency among political parties

2015 ◽  
Vol 9 (1) ◽  
pp. 85-103
Author(s):  
Beatriz Cuadrado-Ballesteros ◽  
Luis Andrés Vaquero-Cacho
Keyword(s):  
Political Parties ◽  
Graphical Representation ◽  
Balance Sheet ◽  
Public Information ◽  
Financial Information ◽  
Content Type ◽  
Income Statement ◽  
Robust Control System ◽  
Political Foundations ◽  
Management Report

Purpose – This paper aims to analyse the level of informative transparency among Spanish political parties and political foundations, according to general and descriptive information (e.g. contact, ideas and values, electoral programmes, members, etc.) and economic, governance and financial information. Design/methodology/approach – The situation of the parties in each year is represented by a biplot, which is a graphical representation of a multivariate sample. The data for this analysis were obtained from the reports published by Fundación Compromiso y Transparencia (Foundation for Integrity and Transparency) for 2011 and 2012. Findings – This paper evidences the existence of serious problems of opacity, especially in relation to financial information (balance sheet, income statement, annual accounts and audit report) and information on the fulfilment of goals and programmes (management report and compliance report). Originality/value – This is the first attempt to analyse statistically the level of transparency of political parties and foundations, showing the need for a robust control system and for mechanisms to penalise conduct that limits citizens’ access to public information.

Teuer Furniture (A): Discounted Cash Flow Valuation

2017 ◽  
pp. 1-23
Author(s):  
Mitchell A. Petersen
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Capital Investment ◽  
Balance Sheet ◽  
The United States ◽  
List Type ◽  
Discounted Cash Flow ◽  
Firm Level ◽  
Income Statement ◽  
Pro Forma

Teuer Furniture is a privately owned, moderately sized chain of upscale home furnishing showrooms in the United States. The firm survived the economic recession and by the end of 2012, it has regained its financial footing. Now that the firm is more secure financially, some of its long-term investors have asked to cash out their investments. This will be the first time that Teuer has repurchased its equity; the company has paid dividends since 2009. Chief financial officer Jennifer Jerabek and her team have been given the task of valuing Teuer using a discounted cash flow approach. The discount rate is given in the case, and the students need to build a pro forma income statement, balance sheet, and cash flow statement and then calculate a per-share value for Teuer. Estimate firm value using a discounted cash flow approach Construct firm-level estimates of the pro forma income statement, balance sheet, and cash flow from assets based on store-level estimates Recognize how forecasts of revenues, costs, and capital investment are constructed, how the individual estimates relate to each other, and how the forecasts depend upon the underlying economics of the business Evaluate and defend the validity of the firm’s forecasts and the valuation model

The procurement dilemma: short-term savings or long-term shareholder value?

2016 ◽  
Vol 37 (6) ◽  
pp. 10-17 ◽  
Author(s):  
Michel Philippart
Keyword(s):  
Corporate Strategy ◽  
Reference Group ◽  
Shareholder Value ◽  
Potential Contribution ◽  
Competitive Advantages ◽  
Short Term ◽  
Content Type ◽  
Functional Perspective ◽  
The Impact

Purpose Research has shown the potential contribution of properly managed suppliers to the competitive position of firms. Major strategy schools of thought such as the industry view and the resource-based view have evolved in their perspective about supplier’s contributions, replacing a transactional perspective of supplier management with a more comprehensive view of their role in corporate strategy. This study aims to understand if procurement professionals have evolved in the same direction. Design/methodology/approach During a corporate wide assessment for a large consumer product corporation, the author had the opportunity to incorporate a four-statement question aimed at identifying the perception of value creation by different levels of procurement staff. The answers were compared with responses of a reference group that comprised business school students who had never been exposed to professional procurement as a function or skill. Findings The results show that buyers, even at senior levels, more clearly identify value as the result of price negotiation, a functional perspective, than as the construction of sustainable competitive advantages, the shareholder perspective. They do not discriminate sufficiently between short-term transactional value transfer and long-term shareholder value capture. Research limitations/implications The study was conducted on a sample of 500 people from four continents but limited to a single corporate environment. This study focused on innovation as a source of value and competitive advantages. Originality/value The paper shows to corporate deciders the impact of overly cost-focused procurement departments. This study reinforces their need to better balance the objectives assigned to their procurement team. This study outlines the steps necessary to align the cultural competitiveness of procurement to the objectives of the firm, with an extended enterprise scope.

scholarly journals Analisis Kinerja Keuangan dengan Menggunakan Metode Common Size pada PT. Holcim Indonesia Tbk

2019 ◽  
Vol 3 (1) ◽  
pp. 153-159
Author(s):  
Riri Rifardi ◽  
R. Deni Muhammad Danial ◽  
Dicky Jhoansyah
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Financial Statements ◽  
Profit Margin ◽  
Short Term ◽  
Descriptive Research ◽  
Income Statement ◽  
Net Profit ◽  
Margin Of Safety ◽  
The Common

Financial statements are used as a tool to find out how the financial performance of the company and can produce useful conclusions. This study aims to determine the financial performance of PT. Holcim Indonesia Tbk, which headlined the 2013-2017 balance sheet and income statement using the common size method. The research method applied in this study is to use descriptive research with a quantitative approach. The results of research conducted indicate the current assets of PT. Holcim Indonesia Tbk is not comparable with the short-term liabilities that are borne by the company, this shows the low liquidity of the company, from solvency, the company uses the capital on the assets of most of the liabilities owned, thus decreasing the level of company sovability and can make a low margin of safety for creditor. Judging from the income statement, it shows that the marketing strategy of the company is not good, as seen from the increase in cost of goods sold and making the gross profit margin decrease. For the company's ability to generate profits, the company's net profit margin from year to year has decreased to a loss in 2016-2017. This shows that financial performance has deteriorated because the company's profitability has always declined to the point of loss. Keywords: Financial Performance, Financial Statements, Common Size Method.

scholarly journals PENGARUH EKSPOR TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2018 ◽  
Vol 5 (2) ◽  
pp. 10-31
Author(s):  
Dara Resmi Asbiantari ◽  
Manuntun Parulian Hutagaol ◽  
Alla Asmara
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Capital Investment ◽  
Industrial Sector ◽  
Ordinary Least Squares ◽  
Short Term ◽  
Capital Goods ◽  
Agricultural Export ◽  
The Government

Economic growth is a matter of the economy in the long term and is influenced by various factors. This study aimed to analyze the effect of the agricultural export, industrial export, mining export, import of capital goods, government spending and gross fixed capital formation to economic growth of Indonesia. The analytical method used was Ordinary Least Squares (OLS) with Cochrane-Orcutt method. This study uses secondary data quarterly time series from 2000 Q1 to 2016 Q1 which is obtained from the Ministry of Trade, the Central Bureau of Statistics, Bank Indonesia and the Capital Investment Coordinating Board. The results showed that on the first model to see the effect of the aggregate exports on economic growth show that imports of capital goods have a significant influence in the short term to economic growth. While in the long term, the variables that have a significant impact on economic growth is GFCF. While the second model to see the role of exports by sector to economic growth getting results that exports in the industrial sector has a significant influence both in the short-term and long-term to economic growth. It concluded that outward looking policies has an effective impact to be applied in Indonesia if the Government to develop exports in the industrial sector.

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