scholarly journals ConAgra Foods: valuing a potential recipe for success

2018 ◽  
Vol 21 (5) ◽  
pp. 595-608 ◽  
Author(s):  
Susan White ◽  
Carlos Trejo-Pech ◽  
Magdy Noguera
Keyword(s):  
Stock Prices ◽  
Business Strategy ◽  
Stock Price ◽  
Discounted Cash Flow ◽  
Firm Level ◽  
Private Brands ◽  
Transaction Analysis ◽  
Packaged Food ◽  
Discounted Cash Flow Valuation

In the fall of 2012, ConAgra Foods had the opportunity to become the largest private-label packaged food producer in North America. ConAgra was considering the purchase of Ralcorp, a large private brands manufacturer. This could be a strategic step for ConAgra, since the potential acquisition seemed aligned to the firm’s strategy for growth. Ralcorp, with revenue and assets representing about one third of ConAgra’s, was large enough to impact ConAgra’s business strategy and financial structure. This case study provides both firm level and private brands industry data to assess the potential acquisition. Ranges of implied stock prices could be estimated by using Discounted Cash Flow Valuation, Comparable Multiples, and Comparable Merger and Acquisitions Transaction analysis. A comparison of implied stock prices and actual stock price by the time of the case leads to the topic of control premium paid during acquisitions and to potential enterprise synergies.

Perbandingan harga saham, volume transaksi dan return saham sebelum dan sesudah terjadi pandemi covid-19 pada PT Agung Podomoro Land, Tbk

2021 ◽  
Vol 5 (4) ◽  
pp. 720
Author(s):  
Anggun Putri Romadhina ◽  
Eka Kusuma Dewi
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Stock Price ◽  
Research Data ◽  
Paired Sample ◽  
First Case ◽  
Significant Difference ◽  
Before And After ◽  
Stock Transaction

The first Covid-19 case in Indonesia was announced on March 2, 2020. This study aims to determine whether there is a significant difference in stock prices, stock transaction volume and stock returns due to the COVID-19 pandemic (case study at PT. Agung Podomoro Land, Tbk). This research data was taken 90 days before and 90 days after the announcement of the first case of COVID-19 in Indonesia. The data was processed by paired sample t-test, using SPSS version 20. From the results of data processing, it was shown that there was a significant difference in stock prices before and after the announcement of the first case of covid-19 in Indonesia. This is indicated by a significance value of 0.000 < 0.05 where the stock price has decreased compared to before the Covid-19 case. Meanwhile, the volume of stock transactions also showed a significant difference with a significance value of 0.007 <0.05, where the volume of stock transactions after the announcement showed a decrease. Likewise, stock returns show a significant difference with a significance value of 0.025 < 0.05 where stock returns have decreased after the announcement of the first case of covid-10 in Indonesia.  

Aggressive tax planning and stock price synchronicity: evidence from China

2019 ◽  
Vol 15 (5) ◽  
pp. 829-857 ◽  
Author(s):  
Hua Feng ◽  
Ahsan Habib ◽  
Gao liang Tian
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Tax Planning ◽  
Specific Information ◽  
Price Informativeness ◽  
Firm Level ◽  
Stock Price Synchronicity ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the association between aggressive tax planning and stock price synchronicity. Design/methodology/approach Employing the special institutional background of China, this study constructs tax aggressiveness and stock price synchronicity measures for a large sample of Chinese stocks spanning the period 2003–2015. The authors employ OLS regression as the baseline methodology, and a fixed effect model, the Fama–Macbeth method and GMM as sensitivity checks. Matched samples and difference-in-difference analyses are used to control for endogeneity. Findings The authors find a significant and positive association between aggressive tax planning and stock price synchronicity. Because material information about risky tax transactions tends to be hidden in various tax accruals accounts, aggressive tax strategies make financial statements less transparent, thereby, increasing information asymmetry and decreasing stock price informativeness. The authors also find that the firms engaging in aggressive tax planning exhibit relatively high corporate opacity. In addition, the authors find that improvements in the tax enforcement regime, ownership status and high-quality auditors all constrain the adverse effects of tax aggressiveness. Practical implications This study has important practical implications for China’s regulators, who are striving to reduce the tax burden of enterprises. It also helps investors to consider investment decisions more appropriately from a taxation perspective. Originality/value First, this paper contributes to the stock price efficiency literature by identifying the effect of a hitherto unexamined factor, namely, firm-level aggressive tax planning, on the efficiency of stock prices. Second, this study provides further empirical evidence to support the agency view of tax aggressiveness, and the informational interpretation of stock price synchronicity. Third, this study helps us better understand the effects of firm-level tax policy on firm-specific information capitalization in an environment where overall country-level investor protection is relatively weak.

Pharmaceutical R&D Spending and Threats of Price Regulation

2009 ◽  
Vol 45 (1) ◽  
pp. 239-264 ◽  
Author(s):  
Joseph Golec ◽  
Shantaram Hegde ◽  
John A. Vernon
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Natural Experiment ◽  
Price Regulation ◽  
Negative Effects ◽  
Firm Level ◽  
Cross Sectional ◽  
Price Changes ◽  
Health Security ◽  
Pharmaceutical Price

AbstractDo threats of pharmaceutical price regulation affect subsequent research and development (R&D) spending? This study uses the Clinton administration’s Health Security Act (HSA) of 1993 as a natural experiment to study this issue. We link events surrounding the HSA to pharmaceutical stock price changes and then examine the cross-sectional relation between firms’ stock price changes and their subsequent unexpected R&D spending changes. Results show that the HSA had significant negative effects on stock prices and firm-level R&D spending. Conservatively, the HSA reduced R&D spending by about $1 billion even though it never became law.

scholarly journals The Influence of Net Profit Margin On Stock Price with Earnings Per Share (Eps) As Moderating Variables

2021 ◽  
Vol 3 (2) ◽  
pp. 74-80
Author(s):  
Budi Prijanto ◽  
Rani Ferina Pulung ◽  
Agustin Rusiana Sari
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Analysis Data ◽  
Profit Margin ◽  
Moderating Variables ◽  
Net Profit ◽  
Food And Beverage

This study aims to investigate: the effect of Net Profit Margin (NPM) on stock prices and whether EPS is a moderating variable on the effect of NPM on stock prices. The case study was determined on the food and beverage sub-sector companies listed on the Indonesia Stock Exchange from 2015 to 2019. The population of this study was 26 companies, with the sampling technique used was the purposive sampling method. The use of this sampling technique resulted in 11 companies that met the criteria. The data analysis techniques used include simple regression (t test), multiple regression (F test), and interaction-type moderation tests using Moderated Regression Analysis. Data processing was carried out with the help of the IBM SPSS Ver 22 program. The findings of this study were that NPM had an effect on stock prices and EPS became a moderating variable (strengthened) on the effect of NPM on stock prices.

scholarly journals A Behavioral Approach To Derive The Cost Of Equity Capital For Small Closely Held Firms

2011 ◽  
Vol 4 (10) ◽  
Author(s):  
Denis Boudreaux ◽  
Tom Watson ◽  
James Hopper
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Reliability And Validity ◽  
Weighted Average ◽  
Equity Capital ◽  
Behavioral Approach ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Discounted Cash Flow ◽  
The Cost

The purpose of this research is to explore the theoretical structure that underlies the valuation process for small closely held firms.  All discounted cash flow valuation models require an estimate of a firm’s weighted average cost of capital as well as the firm’s component cost of equity capital. The CAPM is frequently employed to measure the cost of equity capital for a publicly traded firm.  A publicly held firm’s common stock price is determined in the capital markets and is readily available.  The firm’s stock price can then be used to estimate its beta; a necessary input to the CAPM.  Because there is no information about stock prices, the task of estimating the cost of equity for a closely held firm is more challenging.  The build-up model is frequently used to calculate the cost of equity for the closely held firm. However there is much controversy over this model’s assumptions, reliability and validity.  Specifically, this research critiques the build-up model identifying its advantages and its liabilities. The purpose of this work is to create discussion and stimulate economists to study and improve this important area.  Additionally, this study offers a new economic model to estimate the cost of equity capital that is theoretically correct easy to understand

scholarly journals Pengaruh Pengungkapan Laporan Tahunan Periode 2014-2018 dan Ukuran Perusahaan Terhadap Harga Saham. (Studi Kasus Pada Perusahaan BUMN yang Sahamnya Terdaftar Dalam IDX BUMN20)

2020 ◽  
Vol 12 (2) ◽  
pp. 203-214
Author(s):  
Demetrius Kunto Wibisono ◽  
Esther Yolanda
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Annual Report ◽  
Financial Statements ◽  
Company Size ◽  
Variable Size ◽  
The Public ◽  
Testing Method ◽  
Research Sector

This study aims to find out how the influence of Disclosure of Financial Statements for the period 2014 - 2018 and Company Size on the Stock Price. This case study was conducted by taking a sample of companies list on IDX BUMN20. This study uses the hypothesis testing method using IBM SPSS Statistics Subscription version 23. Based on the results of the study found that an increase in average disclosure in all companies listed on the IDX, in other words, an increase in awareness of the management of companies listed on the IDX to report both financial and non-financial information to the public. In addition, companies listed on the IDX are increasingly obedient to the policies made by the regulator (OJK) related to the disclosure of financial statements. The Annual Disclosure Variable does not partially affect the company's stock price, this is due to differences in the research sector and research year. Partially, the variable size of the company has an influence on stock prices, this is because investors are interested in investing in companies that have large assets and have a large market capitalization because they are considered more profitable. Simultaneously, the Annual Report Disclosure variable and company size variables have a significant effect on stock prices.  Keywords: Annual Report Disclosure, Company Size, and Stock Price.

scholarly journals Exploring the Financial Ratios: The Case Study of the Famed Chemical Industry Firms in the US

2014 ◽  
Vol 1 (2) ◽  
pp. 11 ◽  
Author(s):  
Chikashi Tsuji
Keyword(s):  
Chemical Industry ◽  
Stock Prices ◽  
Stock Price ◽  
System Analysis ◽  
Market Valuation ◽  
Fiscal Year ◽  
Financial Ratio ◽  
Financial Conditions ◽  
The Us

The objective of this paper is to explore the linkage between corporate financial conditions and the market valuation of the famed US chemical industry firms by the case study using financial ratio and market data. More concretely, we first conduct corporate financial ratio analyses including the Du Pont system analysis as to four well-known large chemical industry firms in the US. Our analyzing period is from the fiscal year of 1979 to 2012. After the financial ratio analyses for the above period, we further examine the relations between corporate financial conditions and the market valuation of the four US firms by using their stock price data after the end of the fiscal year of 2012. As a result, the corporate financial conditions of the four firms at the end of the fiscal year of 2012 appear to be adequately reflected in the subsequent stock prices in equity markets.

Netflix, Inc., 2007

2017 ◽  
pp. 1-15
Author(s):  
Phillip E. Pfeifer ◽  
Robert M. Conroy
Keyword(s):  
Cash Flow ◽  
Stock Price ◽  
Customer Retention ◽  
Bad News ◽  
Retention Rates ◽  
Discounted Cash Flow ◽  
Mba Students ◽  
Customer Base ◽  
The Future ◽  
Discounted Cash Flow Valuation

The protagonist in this case is an analyst attempting to value Netflix, Inc., and check whether her recent buy recommendation at a price of $20.00 per share was still valid. Recent bad news had caused the price to drop and she needed to do her best to figure out what was the future for Netflix, and was it undervalued at $17 per share? Intended for MBA students, this case contains her discounted cash flow valuation and a set of assumptions (revenues per customer, retention rates, etc.) students can use to perform a valuation of the existing Netflix customer base as another approach toward judging the $17 stock price. There are two student spreadsheets available for this case (UVA-F-1592X1 and UVA-F-1592X2).

The changing relation between CEOs and shareholders

2017 ◽  
Vol 23 (4) ◽  
pp. 375-400 ◽  
Author(s):  
Abe de Jong ◽  
Marieke van der Poel ◽  
Michiel Wolfswinkel
Keyword(s):  
Twentieth Century ◽  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Transition Period ◽  
Chief Executive ◽  
Investor Relations ◽  
Market Prices ◽  
Content Type

Purpose This paper aims to present case study evidence on the changes in the relations between chief executive officers (CEOs) of large firms and shareholders in the past three decades of the twentieth century. In line with insights from agency theory, the CEOs have experienced increased scrutiny from their principals, the shareholders. This development has affected financial communication and investor relations as well as stock market prices. Design/methodology/approach The Dutch electronics firm Royal Philips NV in the transition period of 1971-2001 has been studied using publicly available disclosures and stock market prices. A descriptive case study approach is combined with event study methodology. Findings It was observed that the increased emphasis on shareholder interests has affected the interactions between Philips’ respective CEOs and the shareholders’ reactions to strategic decisions as measured by stock price changes. Around the beginning of the twenty-first century, clarity and openness in CEO communication was the norm and deviations were punished with volatile stock prices. Research limitations/implications The study relies on publicly available data. Originality/value The case study of Philips can be extrapolated to other exchange-listed firms in the late twentieth century, which faced changed expectations about the role of the CEO, investor relations and the CEO’s accountability toward shareholders. This transition is relevant not only as a historical observation, but also as a background to studies in finance and management about top management and financial markets.

scholarly journals REGRESSION AND CORRELATION ANALYSIS STOCK PRICE WITH BANKRUPTCY (CASE STUDY WITH ZMIJEWSKI BANKRUPTCY MODEL)

2017 ◽  
Vol 5 (5) ◽  
pp. 68-72
Author(s):  
Teguh Sugiarto ◽  
Sri Rahayu ◽  
Ahmad Subagyo ◽  
Ludiro Madu ◽  
Amir Mohamadian Amiri
Keyword(s):  
Correlation Analysis ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Financial Statements ◽  
Correlation Effect ◽  
Weak Correlation ◽  
Spurious Regression ◽  
Regression Test

The purpose of this study to determine how the correlation effect of corporate bankruptcies with stock prices. The study was conducted on companies in the ceramics, glass and porcelain sectors whose shares are traded on the Indonesia Stock Exchange and publish the financial statements in Indonesia Stock Exchange (BEI) in the period 2010-2014. The method used in this research is correlation and regression of OLS. From the research that has been done can be concluded that, the result of regression test of five models at the proposed quadratic value of R is very low and indicate the happening of spurious regression. Using hyposis made concluded that Model H0: βi = 0 regression is not significant, whereas correlation test on proposal received H0: βi ≠ 0 happened weak correlation between bankruptcy analysis with stock price.

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