scholarly journals The Link of Abnormal Accrual Mispricing and Value- Glamour Stock Anomaly: Evidence from the Indonesian Capital Market

2012 ◽  
Vol 14 (1) ◽  
pp. 77
Author(s):  
Erni Ekawati
Keyword(s):  
Stock Price ◽  
Business Performance ◽  
Stock Exchange ◽  
Cash Flows ◽  
Sales Growth ◽  
Operating Cash Flows ◽  
Practical Standpoint ◽  
Abnormal Accruals ◽  
Reported Earnings ◽  
Accrual Mispricing

The purpose of this study is to investigate whether abnormal accrual mispricing acknowledged in accounting literature is a manifestation of documented value-glamour anomaly in finance literature. This study proposes the traditional value-glamour proxies (sales growth, book-to-market, earningprice, cash flows-price, and size) and CFO/P ratio (ratio of operating cash flows and stock price) to explain the mispricing of abnormal accruals. Using a sample of 540 firm-year observations of companies listed on the Jakarta Stock Exchange (JSE) from the period of 1993 to 2003, the study finds that individually, only either the E/P or CFO/P ratio can pick up the mispricing attributed to abnormal accruals. These results can be interpreted as follows: (1) as captured by E/P ratio, abnormal accrual mispricing is due to the market’s inability to understand managers’ attempts to manage reported earnings; (2) as captured by the CFO/P, the market is unable to assess the persistence of cash flows. From a practical standpoint, this study has simplified the research agenda related to asset pricing. The result suggests that a researcher can control for the abnormal accrual mispricing and the value-glamour anomaly parsimoniously via just one variable, E/P ratio.Keywords: business performance; entrepreneurial orientation; environmental uncertainty

scholarly journals PENGARUH OPERATING CAPACITY, SALES GROWTH DAN ARUS KAS OPERASI TERHADAP FINANCIAL DISTRESS

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Annisa Livia Ramadhani ◽  
Khairun Nisa
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Financial Distress ◽  
Agricultural Sector ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cash Flows ◽  
Sales Growth ◽  
Operating Capacity ◽  
Operating Cash Flows

This study aims to determine how the influence of operating capacity, sales growth and operating cash flows on financial distress. The population in this study israll agricultural sector companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. The sampling technique in this study used purposive sampling which produced 8 samples in a period of 5 years, namely as many as 40 units of data samples. The analytical method used is logistic �regression analysis which is processed. using SPSS Version 25. Based on the results of this study, it was found that simultaneous operating capacity, sales growth and operating cash flows influence the occurrence of financial distress. Then partially, operating capacity and sales growth have no effect on the occurrence of financial distress, while operating cash flows have a positive and significant effect on the occurrence of financial distress.�Keyword : Financial Distress, Operating capacity, Sales growth, Operation cash flow.

Predictive view of the value relevance of earnings in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hajam Abid Bashir ◽  
Manish Bansal ◽  
Dilip Kumar
Keyword(s):  
Capital Investment ◽  
Stock Return ◽  
Value Relevance ◽  
Stock Exchange ◽  
Predictive Ability ◽  
Cash Flows ◽  
Data Set ◽  
Content Type ◽  
Uniform Sample ◽  
Reported Earnings

Purpose This study aims to examine the value relevance of earnings in terms of predicting the value variables such as cash flow, capital investment (CI), dividend and stock return under the Indian institutional settings. Design/methodology/approach The study used panel Granger causality tests to examine causality relationships among variables and panel data regression models to check the statistical associations between earnings and value variables. Findings Based on a data set of 7,280 Bombay Stock Exchange-listed firm-years spanning over ten years from March 2009 to March 2018, the results show higher sensitivity of earnings toward cash flows, CI, divided and stock return and vice-versa. Further, the findings deduced from the empirical results demonstrate that earnings are positively related to value variables. Overall, the results established that earnings are value-relevant and have predictive ability to forecast the value variables that facilitate investors in portfolio valuation. The results are consistent with the predictive view of the value relevance of earnings. Several robustness checks confirm these results. Originality/value This study brings new empirical evidence from a distinct capital market, India, and provides a new facet to the value relevance debate in terms of its prediction view. The study is among earlier attempts that jointly measure the ability of earnings in forecasting different value variables by taking a uniform sample of firms at the same period. Hence, the study provides a comprehensive view of the predictive ability of reported earnings.

scholarly journals PENGARUH ARUS KAS KEGIATAN OPERASI, SIKLUS OPERASI, UKURAN PERUSAHAAN DAN TINGKAT HUTANG TERHADAP PERSISTENSI LABA (STUDI EMPIRIS PADA PERUSAHAAN JASA SUB SEKTOR KONSTRUKSI DAN BANGUNAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2016)

2019 ◽  
Vol 3 (1) ◽  
pp. 45-54
Author(s):  
Varadika Sarah ◽  
Ahmad Jibrail ◽  
Sudrajat Martadinata
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cash Flows ◽  
Earnings Persistence ◽  
Building Sector ◽  
Operating Cycle ◽  
Operating Cash Flows ◽  
Operating Cash Flow

Earnings Persistence is earning can reflect the earnimg priod next. In fact there are still companies that do not guarantee a persistent of earning. This study wished to examine ehe effect of operating cash flows, operating cycle, firm size, and the lever of debt both individually and simultaneously to earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016. The sampling technique using purposive sampling so than 9 sample companies were obtained. Data were analized using panel data with multiple regression then tested with the help of STATA 11 softwere.The result of this study are: operating cash flow, operating cycle, firm size there is not significant effect on earning persistence. While the level of debt has significant effect on earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016

scholarly journals PENGARUH EARNING PER SHARE (EPS) DAN PERTUMBUHAN PENJUALAN TERHADAP HARGA SAHAM PADA PERUSAHAAN FARMASI YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Desi Nurul Hikmati Ilahiyah
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Share Price ◽  
Pharmaceutical Companies ◽  
Sales Growth ◽  
Earnings Per Share

On investing in the capital market one thing that must be considered is the stock price. The price of shares offered on a stock exchange is related to the achievements of the company. The share price can be purchased by earnings per share (EPS) and sales growth. The purpose of this study was to study the effect of earnings per share (EPS) and sales growth on the stock prices of pharmaceutical companies listed on the Indonesian stock exchange (IDX). The population in this study were 11 pharmaceutical companies that were accepted on the Stock Exchange and sampled through purposive sampling techniques as many as 9 companies in the 2015-2019 period. This study uses multiple linear regression analysis. EPS partial research results positive and significant EPS on EPS stock prices EPS has tcount (54,435)> ttable (2,02439), on the other hand, partial sales growth, positive and significant effect on stock prices, economic growth, thitung sales value ( -3,525) table (-2.02439). Simultaneous EPS and positive and significant growth in stock prices due to the results obtained Fcount (1560,773)> Ftable (3.25).

Earnings, Cash Flows, and Ex Post Intrinsic Value of Equity

2007 ◽  
Vol 82 (2) ◽  
pp. 457-481 ◽  
Author(s):  
K. R. Subramanyam ◽  
Mohan Venkatachalam
Keyword(s):  
Stock Returns ◽  
Intrinsic Value ◽  
Market Price ◽  
Cash Flows ◽  
Cost Of Equity ◽  
Operating Cash Flows ◽  
Ex Post ◽  
Reported Earnings ◽  
Future Cash Flows ◽  
Value Measure

We reexamine the relative importance of earnings and operating cash flows in equity valuation. In contrast to previous studies that use stock returns (Dechow 1994) or future operating cash flows (Barth et al. 2001), we use ex post intrinsic value of equity as the criterion for comparison. We determine ex post intrinsic value of equity by discounting future dividends over a three-year horizon and market price at the end of the horizon by industry cost of equity. The advantage of the ex post intrinsic value measure over stock returns is that it is not contaminated by the stock market's fixation on reported earnings (Sloan 1996). Also, unlike finite horizon future operating cash flows, ex post intrinsic values better reflect the magnitude, timing, and uncertainty of investors' future cash flows (SFAC No. 1, FASB 1978). Our results suggest that accrualbased earnings dominate operating cash flows as a summary indicator of ex post intrinsic value.

scholarly journals PENGARUH LABA AKUNTANSI, ARUS KAS OPERASI, ARUS KAS INVESTASI, ARUS KAS PENDANAAN, DAN UKURAN PERUSAHAAN TERHADAP RETURN SAHAM

2021 ◽  
Vol 16 (1) ◽  
pp. 1
Author(s):  
Meta Nursita
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Cash Flows ◽  
Study Data ◽  
Company Size ◽  
Test Model ◽  
Operating Cash Flows ◽  
The Impact

This study aimed to examine the impact of accounting profit, operating cash flows, investment cash flows, financing cash flows and company size to stock returns on manufacturing firms sector for consumption by the corporate listed and registered under the Indonesia Stock Exchange within 2014 - 2016. This study employed Purposive Sampling method with a total of 39 companies taken as the sample in the present study. Data analysis process followed the following steps; descriptive statistical test, multicollinearity test, model fit test, regression model feasibility test, and hypothesis test. Statistical method used is panel data regression analysis. The result showed that accounting profit had partially significant impact on stock return; operating cash flows no had significant impact on stocks return; investment cash flows, and financing cash flows had no significant impact on stock return and company size had significant impact on stocks return. in addition, simultaneously, the results showed that the four aspects examined had statistically significant impact on stock return.

scholarly journals Analisis Faktor – Faktor Yang Mempengaruhi Harga Saham Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 245-259
Author(s):  
Masyitah Fujianugrah MM
Keyword(s):  
Analytical Method ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Return ◽  
Stock Exchange ◽  
Linear Analysis ◽  
Sales Growth ◽  
Manufacturing Companies ◽  
Cash Dividend ◽  
Return On Equity

ABSTRACT The object of this research is all manufacturing companies listed in Indonesia Stock Exchange 2010-2014, as many as 150 companies. Samples were selected using purposive sampling. The number of samples in this study were as many as 16 companies. The collection of data by accessing internet sites to the Indonesia Stock Exchange. The analytical method used is multiple linear analysis. The results of this study show that: Simultaneously, the factors that consists of a variable Dividend, Profitability, Sales Growth, Stock Return simultaneously significant effect on stock prices. Partially, Profitability and Sales Growth variables significantly influence stock prices while variable Cash Dividend and Stock Return no significant effect on stock prices   Keywords        :Cash Dividend, profitability (ROA), Sales Growth, Return on Equity, Stock Price  

The Financial Implications of In-Substance Defeasance

1987 ◽  
Vol 2 (1) ◽  
pp. 79-89 ◽  
Author(s):  
Peyton Foster Roden
Keyword(s):  
Interest Rates ◽  
Stock Price ◽  
Cash Flows ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Corporate Managers ◽  
Earnings Per Share ◽  
Equity Ratio ◽  
Reported Earnings ◽  
Future Cash Flows

In November 1983, the Financial Accounting Standards Board issued Statement No. 76, Extinguishment of Debt. The Statement permits corporations completing an in-substance defeasance to recognize an increase in earnings and earnings per share. High interest rates in 1984 and the Statement encouraged corporate managers to defease debt in substance and to show the associated increase in earnings per share. The financial impact contrasts with those of accounting. Although in-substance defeasance leads to an increase in reported earnings, financial theory suggests that it leads to a decrease in the price of the defeasing corporation's common stock by doing the following: decreasing the amount of future cash flows, decreasing corporate liquidity, redistributing wealth from common shareholders to bondholders, and decreasing the debt-equity ratio. Only the change in the debt-equity ratio may lead to an expected increase in stock price. The other three influences lead to an expected decrease.

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