Relevansi Nilai Atas Nilai Wajar Aset dan Liabilitas Dengan Mekanisme Good Corporate Governance Sebagai Variabel Pemoderasi

This study examines the relevance of fair value of assets and liabilities and mechanisms of good corporate governance as a moderating variable by using a sample banking companies listed in Indonesia Stock Exchange from 2012 to 2014 year. The sampling method using purposive sampling and analysis of research data using Eviews. Mechanism of Good Corporate Governance in the study visits of the independent board, institutional investors and the audit committee of the company. Furthermore, this research also investigates the value relevance of accounting information such as book value, earnings, the fair value of financial assets and liabilities with a view influence on stock prices and stock returns. Ohlson Model (1995) into the measurement model used in this study, and this study examines both the measurement model Ohlson is the pricing model and the model returns to see the consistency of the study. Significant results indicate that the book value, earnings, the fair value of assets and liabilities fair value has relevance value. So we can conclude all variables affect stock prices and stock returns. In addition, Good corporate governance mechanisms able to moderate over the value relevance of book value, earnings, fair value of financial assets and liabilities fair value.

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Role of Corporate Governance in Increasing the Value Relevance of Earning and Fair Value Measurement of Non-Financial Asset in Indonesia Company

International Journal of Multicultural and Multireligious Understanding ◽

10.18415/ijmmu.v6i1.507 ◽

2019 ◽

Vol 6 (1) ◽

pp. 91

Author(s):

Ananta Dian Pratiwi ◽

Sutrisno Sutrisno ◽

Aulia Fuad Rahman

Keyword(s):

Decision Making ◽

Corporate Governance ◽

Stock Prices ◽

Value Relevance ◽

Accounting Information ◽

Fair Value ◽

Financial Assets ◽

Fair Value Measurement ◽

Value Measurement

Accounting information is one of many informations that is used in making decisions by investors. Accounting information has value relevance when the information raises investor reactions, meaning that the information is used for decision making that affects stock prices. This study aimed to examine the value relevance of earning value and the fair value measurement of non-financial assets, along with the role of corporate governance in increasing the value relevance of both informations. This study used 142 companies listed on the Indonesia Stock Exchange during 2012-2017 as study samples. Moedaretd Regression Analysis was used as an analytical tool to test the relationship of study variables. The results showed that earning and the fair value measurement of non-financial assets had value relevance. Both of these informations are considered useful by investors for their decision making. Corporate governance was found to play a role in increasing the value relevance of earning and the fair value measurement of non-financial assets. Corporate governance is able to reduce agency conflicts that can cause information to be biased for investors. The existence of corporate governance provides assurance that informations has been fairly presented to investors, thereby increasing value relevance.

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Relevance of earnings and book value: Evidence from listed pharmaceutical companies

Corporate Ownership and Control ◽

10.22495/cocv18i1art15 ◽

2020 ◽

Vol 18 (1) ◽

pp. 196-206

Author(s):

Mwila Mulenga ◽

Meena Bhatia

Keyword(s):

Decision Making ◽

Stock Returns ◽

Stock Prices ◽

Value Relevance ◽

Accounting Information ◽

Least Square ◽

Sufficient Evidence ◽

Pharmaceutical Companies ◽

Book Value ◽

The Impact

For accounting information to be useful for decision making it is essential that it is relevant for decision-making and should have a significant relation with stock prices or stock returns. Value relevance research aims to explain the impact of accounting information on stock prices or stock returns. This study examines the value relevance of earnings and book values on listed Indian pharmaceutical companies’ stock prices by using the Ohlson price model. The study gathered a series of panel data from 2006 to 2015 from the Nifty Pharma index. Ordinary least square and panel regression estimation were done using EViews. The findings provide sufficient evidence of those earnings per share (EPS) and book value per share (BVPS) jointly and individually for the Nifty Pharma index sample played an essential role in influencing stock prices. However, there is an insignificant decline in the combined value relevance of EPS and BVPS. The findings reveal that the EPS and BVPS played an important role in influencing stock prices. However, explanatory powers of EPS and BVPS in all years are significantly lower than that of developed countries. Overall findings show mixed results on the considerable influence of firm size on the value relevance of accounting information. This study’s findings have implications for analysts, investors, and other market participants; they should use EPS and BVPS in the equity valuation of pharmaceutical companies for better allocation of resources in capital markets.

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PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP SAHAM RETURN PERUSAHAAN PERBANKAN YANG TERCATAT DI BEI PERIODE 2016–2019 [THE INFLUENCE OF GOOD CORPORATE GOVERNANCE ON STOCK RETURNS OF BANKING COMPANIES LISTED ON IDX FROM 2016 TO 2019]

Milestone: Journal of Strategic Management ◽

10.19166/ms.v1i2.4368 ◽

2021 ◽

Vol 1 (2) ◽

pp. 125

Author(s):

Natalia Natalia ◽

Herlina Lusmeida

Keyword(s):

Corporate Governance ◽

Stock Returns ◽

Audit Committee ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Institutional Ownership ◽

Multiple Linear Regression Analysis ◽

Managerial Ownership ◽

Purposive Sampling ◽

Good Corporate Governance

The purpose of this study is to analyze the effect of good corporate governance on stock returns. Return is the level of profit obtained by investors on investment activities. Good corporate governance used in this study is an independent board of commissioners, audit committee, managerial ownership, and institutional ownership. This research was conducted using the annual report documentation method of banking companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. The sampling method in this study was purposive sampling with the number of samples obtained is 106 samples. Data processing is done by quantitative method using multiple linear regression analysis. The results of the study show that the audit committee and institutional ownership have a negative and significant effect on stock returns, while independent commissioners and managerial ownership have no effect on stock returns.BAHASA INDONESIA ABSTRAKTujuan dari penelitian ini adalah untuk menganalisis pengaruh good corporate governance terhadap pengembalian saham. Return adalah tingkat keuntungan yang diperoleh investor atas kegiatan investasi. Good corporate governance yang digunakan dalam penelitian ini adalah dewan komisaris independen, komite audit, kepemilikan manajerial dan kepemilikan institusional. Penelitian ini dilakukan dengan metode dokumentasi laporan tahunan perusahaan perbankan yang terdaftar di Bursa Efek Indonesia (BEI) 2016–2019. Metode pengambilan sampel dalam penelitian ini adalah purposive sampling dengan jumlah sampel yang diperoleh sebanyak 106 sampel. Pengolahan data dilakukan dengan metode kuantitatif dengan menggunakan analisis regresi linier berganda. Hasil penelitian menunjukkan variabel komite audit dan kepemilikan institusional berpengaruh negatif dan signifikan terhadap return saham, sedangkan dewan komisaris independen dan kepemilikan manajerial tidak berpengaruh terhadap return saham.

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The Reliability of Fair Value versus Historical Cost Information: Evidence from Closed-End Mutual Funds

Journal of Accounting Auditing & Finance ◽

10.1177/0148558x0301800101 ◽

2003 ◽

Vol 18 (1) ◽

pp. 1-24 ◽

Cited By ~ 67

Author(s):

Thomas J. Carroll ◽

Thomas J. Linsmeier ◽

Kathy R. Petroni

Keyword(s):

Stock Returns ◽

Mutual Funds ◽

Stock Prices ◽

Stock Price ◽

Value Relevance ◽

Fair Value ◽

Cost Information ◽

G7 Countries ◽

Historical Cost ◽

Equity Securities

This research examines the value-relevance of fair value accounting relative to historical cost accounting for financial instruments held by closed-end mutual funds to provide evidence on the reliability of fair value estimation. Closed-end funds are considered because their balance sheets and income statements typically are reported at fair value and there is great variation in the types of securities held by various funds. For a sample of 143 closed-end mutual funds during 1982–1997, we find a significant association between stock prices and the fair value of investment securities, as well as between stock returns and fair value securities gains and losses, even after controlling for historical costs. To examine whether differences in the perceived reliability of the investment securities fair values affect investors' assessments of the usefulness of the information, we examine the association between stock price metrics and fair values across different fund types (e.g., publicly held equity securities from G7 countries, equity securities other than those publicly held from G7 countries, U.S. government or municipal securities, corporate bonds). We find that in all cases there is a significant association between the stock price metrics and fair values. This suggests that the need to estimate fair values for securities traded in thin markets, such as private or non-G7 equities, does not cause the incremental value-relevance of fair value information to be eliminated. Our strong and consistent findings in the closed-end fund setting suggest that reliability problems in measuring the fair values of investment securities are not the primary explanation for the inconsistency in prior research results; instead such inconsistency may be attributed to the incomplete availability of fair value measures in other settings.

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Do non-staggered board elections matter to earnings quality and the value relevance of earnings and book value?

Review of Accounting and Finance ◽

10.1108/raf-01-2015-0006 ◽

2017 ◽

Vol 16 (1) ◽

pp. 46-66 ◽

Cited By ~ 2

Author(s):

Shuling Chiang ◽

Gary Kleinman ◽

Picheng Lee

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Stock Prices ◽

Positive Relationship ◽

Value Relevance ◽

Earnings Quality ◽

Discretionary Accruals ◽

Content Type ◽

Book Value ◽

The Impact

Purpose The purpose of this paper is to examine the impact of non-staggered voting for members of the board of directors on earnings quality and the value relevance of earnings and book value. Design/methodology/approach The authors used a sample of Taiwanese firms whose board was elected as a whole every three years from 2003 to 2013. The authors used multiple regression analysis to test whether board of directors elections and corporate governance affected earnings quality and the value relevance of earnings and book value. Findings The authors found that elections led to lower earnings quality, but better corporate governance led to greater earnings quality. In the presence of board elections, earnings have reduced value relevance but book value had increased value relevance. Finally, given board elections, the relative value relevance of earnings and book value on stock price was not fully moderated by strong corporate governance. Research limitations/implications The results presented here indicate the importance of better corporate governance in diffusing suspicions of management occasioned by the use of discretionary accruals in years in which board elections take place. Better corporate governance regimes led to a more positive relationship of discretionary accruals to earnings persistence, even in the presence of directorial elections. Similarly, better corporate governance regimes led to a more positive relationship between earnings per share and stock prices. Limitations include the restriction of the testing locale to Taiwan. That said, many companies around the globe use non-staggered board elections. Accordingly, these results suggest issues of importance to corporate governance advocates beyond Taiwan as well. Originality/value This study deepens the field’s understanding of the impact of corporate governance arrangements and schedules for electing board of directors’ members on issues of interest to stockholders.

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Do stock prices reflect regulatory reforms in the corporate governance mechanisms?

Corporate Ownership and Control ◽

10.22495/cocv13i2c2p2 ◽

2016 ◽

Vol 13 (2) ◽

pp. 419-431 ◽

Cited By ~ 1

Author(s):

Constantinos Chalevas ◽

Christos Tzovas

Keyword(s):

Corporate Governance ◽

Stock Returns ◽

Stock Prices ◽

Value Relevance ◽

Stock Exchange ◽

Economic Value ◽

Governance Mechanisms ◽

Corporate Governance Mechanisms ◽

Athens Stock Exchange ◽

Regulatory Reforms

This study provides evidence on the value relevance of corporate governance mechanisms in a developing stock exchange. It empirically investigates the effect of corporate governance mechanisms prescribed by the corporate governance law (L.3016/2002) on abnormal stock returns for firms listed in the Athens Stock Exchange (ASE). The first corporate governance law in Greece aims to improve the existing corporate governance framework. However, stock prices seem no to be affected by the regulatory reforms in the corporate governance mechanisms. Three reasons are given: (1) the fundamental economic value of a firm is not affected by the introduction of corporate governance mechanisms; (2) the fundamental economic value of a firm is affected by the introduction of corporate governance mechanisms but due to the fact that the Greek stock market is not efficient share prices do not reflect firm’s fundamental economic value; and (3) investors may not be convinced that corporate governance mechanisms significantly affect the performance of a company.The findings of this study can facilitate legislators in improving the existing legislation concerning corporate governance and in developing a new one.

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PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN KELUARGA YANG TERDAFTAR DI BEI PERIODE TAHUN 2013-2017

Kajian Bisnis STIE Widya Wiwaha ◽

10.32477/jkb.v27i2.51 ◽

2019 ◽

Vol 27 (2) ◽

pp. 109-118

Author(s):

Intan Ariningtyas Junaidi ◽

Nurfauziah Nurfauziah

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Sampling Method ◽

Stock Exchange ◽

Positive Influence ◽

Governance Mechanism ◽

Book Value ◽

Company Value ◽

Good Corporate Governance ◽

Corporate Governance Mechanism

The purpose of this study was to determine the effect of the application of good corporate governance to the value of the company in family businesses. In this study the sample used was 50 family companies listed on the Indonesia Stock Exchange in 2013-2017. This sample uses a purposive sampling method based on predetermined criteria. The corporate governance mechanism used is an independent board of commissioners and an audit committee. The company value is calculated using the book value (PBV). In testing hypotheses, the method used is multiple regression analysis. The results of this study indicate that if the independent board of commissioners has no influence on the value of the company measured using the book value of prices and the audit committee has a positive influence on the value of the company measured using the book value of prices.

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Earnings and Cash Flow Information on Its Value Relevance by The Book Value

Riset Akuntansi dan Keuangan Indonesia ◽

10.23917/reaksi.v5i1.10679 ◽

2020 ◽

Vol 5 (1) ◽

pp. 46-53

Author(s):

Andy Dwi Bayu Bawono ◽

Mila Ramadhanti ◽

Lintang Kurniawati

Keyword(s):

Stock Returns ◽

Cash Flow ◽

Stock Prices ◽

Value Relevance ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Multiple Linear Regression Analysis ◽

Annual Reports ◽

Book Value ◽

Independent Variable

This study aims to examine the relationship of earnings and operating cash flow as an independent variable on the value relevance of accounting information proxied by stock returns by using book value as a moderating variable. The utilitation of stock returns as an independent variable is choosed as previous research on value relevance tends to use stock prices as an independent variable. The sample of this study is all population of companies listed on the Jakarta Islamic Index (JII) in the 2016-2018 period June-November (issued from June 1st) using saturation sampling. The data used in this study is compound from annual reports in the Indonesia Stock Exchange (IDX) and stock prices from Yahoo Finance. Further, data were tested using multiple linear regression analysis. The results showed that earnings and cash flow have an effect on value relevance proxied by stock returns. However, book value neither strengthens nor weakens earnings and cash flow towards stock returns as a moderating variable. Keywords : Earnings, Operation Cash Flow, Stock Return, Value Relevance, Jakarta Islamic Index

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Analisis Pengaruh Manajemen Laba Terhadap Nilai Perusahaan dengan Good Corporate Governance Sebagai Variabel Moderasi (Studi Kasus Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017)

Jurnal Manajemen Bisnis dan Kewirausahaan ◽

10.24912/jmbk.v3i6.6088 ◽

2019 ◽

Vol 3 (6) ◽

pp. 01

Author(s):

Theresia Shirley Tanadi Dan Indra Widjaja

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Stock Exchange ◽

Discretionary Accruals ◽

Manufacturing Firms ◽

Analysis Method ◽

Book Value ◽

Basic Industry ◽

Good Corporate Governance

The main objective of this research is to collect the empirical evidence of the influence of earnings management to the Firms’ value, with good corporate governance as the moderating variable, for Manufacturing Firms that are registered to the Indonesian Stock Exchange as of 2015 – 2017. Manufacturing Firms as the research subject, with Consumer Goods Industry and Basic Industry & Chemical sector. The research variables are (1) profit management, with proxy discretionary accruals modified jones; (2) Firm’s value, with proxy price to book value; and (3) good corporate governance, with proxy independent commissioner proportion and audit committee. This research used simple and moderated regression analysis method. The result indicates that earnings management has an impact on the Firms’ value and audit committee moderates the influence of earnings management to Firms’ value, whereas independent commissioner does not.

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Effect of Good Corporate Governance (GCG) Mechanism on Earning Management Practices and the Impact on Stock Returns (Case Study on LIQUID (lQ 45) Companies Listed in Indonesia Stock Exchange Period 2013-2017)

Business and Management Studies ◽

10.11114/bms.v5i3.4313 ◽

2015 ◽

Vol 5 (3) ◽

pp. 11

Author(s):

M. Noor Salim ◽

M. Rusman HN

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Stock Returns ◽

Audit Committee ◽

Management Practices ◽

Stock Exchange ◽

Institutional Ownership ◽

Earning Management ◽

Managerial Ownership ◽

Good Corporate Governance

This study aims to analyze the effect of the mechanism of good corporate governance (GCG) on earnings management practices and their impact on stock returns. The population used in this study is the companies included in the go public LQ 45 group listed on the Indonesia Stock Exchange in 2017. The analytical tool used in this study is Eviews software version 8.0. The results of the analysis in this study indicate that (1) Institutional Ownership has a negative and significant effect on Earning Management Practices, (2) Managerial Ownership has a negative and significant effect on Earning Management Practices, (3) Independent Board of Commissioners has a negative and significant effect on Earnings Management, (4) The Audit Committee has a negative and significant effect on Earning Management Practices, (5) Institutional Ownership, Managerial Ownership, Independent Board of Commissioners and Simultaneous Audit Committee (Together) have a significant effect on earnings management, (6) Earning Management Practices have a negative and significant effect on stock returns(7) Institutional Ownership has a positive and significant effect on stock returns, (8) Managerial ownership has a positive and significant effect on stock returns, (9) The Independent Board of Commissioners has a positive and significant effect on stock returns, (10) The Audit Committee has a positive and significant to stock returns, and (11) Earning Management is able to mediate the influence of Institutional Ownership, Managerial Ownership, Independent Board of Commissioners, and the Audit Committee simultaneously (jointly) on Stock Returns. It is recommended that the LQ45 company increase the portion of Institutional ownership as part of a supervision for management in managing the company so as to increase stock returns on an ongoing basis.

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