scholarly journals Empirical Evidence On The Valuation Of Financial Information In France

2010 ◽  
Vol 9 (3) ◽  
Author(s):  
Melita Stephanou-Charitou ◽  
Adamos Vlittis
Keyword(s):  
Financial Analysts ◽  
Investment Decisions ◽  
Cash Flows ◽  
Financial Information ◽  
Major Research ◽  
French Firm ◽  
First Results ◽  
Financial Scandals ◽  
Credit Financing

We propose and examine empirically the role of financial information; namely, earnings and cash flows in France.  The dataset consists of more than 1,000 French firm-year observations over a ten-year period. Regression analysis is undertaken to test the major research hypotheses.  The major conclusions drawn from the empirical results are summarized as follows.  First, results indicate that both earnings and cash flows are taken into consideration by French investors in their investment decisions.  Second, given cash flows, results show that earnings are always very important to investors and financial analysts for investment purposes.  However, results reveal that investors in France place much more attention to earnings and less attention to cash flows. In summary, the evidence provided in this study supports that indeed there are substantial differences in the way investors and financial analysts perceive financial information, such as earnings and cash flows in France.  The results of this study should be of great importance to the major stakeholders, such as investors, creditors and financial analysts, especially after the latest financial scandals and collapses of giant organizations worldwide.  Furthermore, these results support that fundamental analysis plays a very important role in the capital markets and it should be taken more seriously into consideration by the stakeholders for investing, credit, financing and valuation analysis purposes.

Role of Financial and Non-Financial Information in Shaping Trading Behavior: A Retail Investor’s Perspective

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Muhammad Naveed ◽  
Muzammal Ilyas Sindhu ◽  
Shoaib Ali
Keyword(s):  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Financial Information ◽  
Equation Modeling ◽  
Trading Behavior ◽  
Stock Trading ◽  
Retail Investors ◽  
Retail Investor

This study aims to examine the role of information disclosure in determining retail investor trading behavior. The approach of the study is deductive, while the quantitative strategy is adopted by using a survey questionnaire for data collection. Primary data was collected from 386 retail investors actively involved in stock trading at Pakistan Stock Exchange (PSX). Theoretical underpinning is based on the signaling theory. Covariance based structural equation modeling (SEM) has carried out to statistically examine the strength of the proposed model.The key findings of this study exhibit that on average, retail investors invest in firms with detailed financial and non-financial disclosures. The result also shows the intervening influence of perceived corporate image on retail investor decisions. Categorically, the finding of this study indicates that improved financial and non-financial disclosure practices support retail Investors to make sound stock investment decisions. The proposed model is novel to insight into the retail investor investment decision in the context of Pakistan.The results should be of interest to firms reporting detail and cohesive non-financial information with the presumption that it is requisite to influence the investor's investment decision making. The result reflects the mismatch between retail Investors' preferences and firm's information reporting practices, which in turn affect their appeal toward investment decisions. This study contributes to the comprehension of the information needs of retail investors and how it hailed their trading behavior.  The findings of the study remain robust to firms listed on a stock exchange and retail Investor involved in stock trading.

scholarly journals Investment value of recommendations in the Italian stock exchange

2007 ◽  
Vol 4 (4) ◽  
pp. 78-91 ◽  
Author(s):  
Enrico Maria Cervellati ◽  
Antonio Carlo Francesco Della Bina ◽  
Pierpaolo Pattitoni
Keyword(s):  
Policy Maker ◽  
Stock Exchange ◽  
Financial Analysts ◽  
Investment Decisions ◽  
Research Activity ◽  
Academic Literature ◽  
Average Consensus ◽  
Investment Value ◽  
The Press ◽  
Financial Scandals

Financial analysts’ research activity seems to be important for investors in their investment decisions. Understanding if financial analysts’ reports can influence the market and the degree of reliability of their forecasts has been a theme lively debated in the academic literature but also in the press, mainly because of recent financial scandals. The main objective of the paper is to calculate the investment value of financial analysts’ recommendations on companies listed in the Italian Stock Exchange and to verify the possibility of profiting from relying on the average consensus of recommendations. We have enclosed in the analysis all the 16,634 reports issued between the 1st January 1999 and the 23rd July 2004 and available on the website of the Italian Stock Exchange, constructing a unique database for Italy. After classifying companies by quarter, five portfolios are formed based on analysts’ average consensus to calculate the excess returns of each portfolio in each quarter. Our results suggest that analysts’ recommendations have indeed investment value, even if investors should carefully consider neutral recommendations that can be considered as negative ones. These results, furthermore, give some interesting regulatory suggestions for a policy maker that wants to ensure transparency in the markets

Investment–cash flow sensitivities of restaurant firms

2018 ◽  
Vol 24 (5) ◽  
pp. 560-575 ◽  
Author(s):  
Serin Choi ◽  
Seoki Lee ◽  
Kyuwan Choi ◽  
Kyung-A Sun
Keyword(s):  
Cash Flow ◽  
Risk Sharing ◽  
Investment Decisions ◽  
Cash Flows ◽  
Resource Scarcity ◽  
Restaurant Industry ◽  
Financing Decisions ◽  
Close Relationship ◽  
Cash Flow Sensitivity

Although some theories argued that investment decisions are irrelevant to financing decisions under the assumption of perfect market, investment decisions and capital structure seem interdependent in real-world circumstances. Further, the past literature also suggested a close relationship between internal cash flows and investment decisions, that is, investment–cash flow sensitivity (ICFS), but this issue has not been closely examined in the restaurant setting. Therefore, the current study first proposes to examine ICFS in the context of the restaurant industry. More importantly, this study also examines a moderating role of franchising to better explain ICFS, considering a major role of franchising in the restaurant industry, based on theories of pecking order, resource scarcity, and risk sharing. Findings of the current study deepens the understanding of ICFS via franchising, making meaningful contributions to not only to existing ICFS literature but also restaurant franchising literature.

Comprehensive Income: which potential effects on firms' performance evaluation and users' decision process?

2016 ◽  
pp. 55-94
Author(s):  
Pier Luigi Marchini ◽  
Carlotta D'Este
Keyword(s):  
Performance Evaluation ◽  
Decision Process ◽  
Financial Analysts ◽  
Listed Companies ◽  
Financial Statement ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
The Impact

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users' decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users' decision process, although it statistically affects Italian listed entities' performance.

Peran kepemilikan institusional, perencanaan pajak dan dewan komisaris asing terhadap nilai perusahaan

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Anita Ade Rahma ◽  
Lisa Nabawi ◽  
Ronni Andri Wijaya
Keyword(s):  
Significant Influence ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Total Sample ◽  
Tax Planning ◽  
Purposive Sampling ◽  
Institutional Leadership ◽  
Company Value

The purpose of this study is to analyze the role of institutional leadership, tax planning and foreign board of commissioners on firm value. The population in this study were 615 companies listed on the Indonesia Stock Exchange in 2015-2017. The sample was chosen using purposive sampling to get a total sample of 325 companies with a total of 975 observations of company data. The results of this study indicate that institutional leadership and tax planning have no role in increasing company value. While the foreign board of commissioners showed a significant influence on the value of the company. This proves that there is a need for diversity in the structure of the board that can trigger an increase in the value of the company. In addition, the presence of a foreign board is needed for the progress of the companyKeywords: Investment decisions; funding decisions; dividend policy; company value

Quasar host galaxies and environments in the GAMA survey

2019 ◽  
Vol 15 (S356) ◽  
pp. 170-170
Author(s):  
Jari Kotilainen
Keyword(s):  
Galaxy Evolution ◽  
Large Scale ◽  
Group Membership ◽  
Host Galaxy ◽  
Host Galaxies ◽  
Cluster Group ◽  
First Results ◽  
Triggering Mechanisms ◽  
Mass Assembly

AbstractWe present first results from our study of the host galaxies and environments of quasars in Galaxy And Mass Assembly (GAMA), a multiwavelength photometric and spectroscopic survey for ∼300,000 galaxies over ∼300 deg2, to a limiting magnitude of r ∼ 20 mag. We use a GAIA-selected sample of ∼350 quasars at z < 0.3 in GAMA. For all the quasars, we determine all surrounding GAMA galaxies and measure their star formation (SF) rate and SF history, and the host galaxy morphology and group membership of the quasars. As a comparison sample of inactive galaxies, we use 1000 subsets of galaxies in GAMA, matched in redshift and galaxy stellar mass to the quasars. We find that quasar activity does not depend on the large-scale environment (cluster/group/void), although quasars tend to prefer satellite location in their environment. Compared to inactive galaxies, quasars are preferentially hosted in bulge-dominated galaxies and have higher SF rates, both overall and averaged over the last 10 and 100 Myr. Quasars also have shorter median SF timescales, shorter median time since the last SF burst, and higher metallicity than inactive galaxies. We discuss these results in terms of triggering mechanisms of the quasar activity and the role of quasars in galaxy evolution.

Role of complementary and competitive relationships among multiple objectives in conservation investment decisions

2021 ◽  
Vol 131 ◽  
pp. 102569
Author(s):  
Young Gwan Lee ◽  
Gengping Zhu ◽  
Bijay P. Sharma ◽  
Burton C. English ◽  
Seong-Hoon Cho
Keyword(s):  
Investment Decisions ◽  
Multiple Objectives ◽  
Conservation Investment
Sign in / Sign up

Export Citation Format

Share Document