scholarly journals Economic impacts of capitalization of operating leases: Evidence from Japan

2015 ◽  
Vol 12 (4) ◽  
pp. 828-850 ◽  
Author(s):  
Masaki Kusano ◽  
Yoshihiro Sakuma ◽  
Noriyuki Tsunogaya
Keyword(s):  
Economic Impacts ◽  
Economic Consequences ◽  
Financial Ratios ◽  
Accounting Standard ◽  
Coverage Ratio ◽  
Rule Change ◽  
Operating Leases ◽  
Accounting Numbers ◽  
Equity Ratio ◽  
Pro Forma

The purpose of this study is to investigate the economic impacts of capitalization of operating leases in Japan. Specifically, this study estimates the ex-ante impacts of capitalization of operating leases by comparing pro-forma accounting numbers based on a proposed rule change with reported accounting numbers under an extant rule. Our findings are twofold. First, capitalization of operating leases has significant impacts on financial ratios, including the debt to equity ratio (DER) and the interest coverage ratio (ICR). Second, the impacts of capitalization of operating leases on these financial ratios are more likely to be large after the adoption of Statement No. 13, Accounting Standard for Lease Transactions. This study contributes to the literature on economic consequences of capitalizing leases and discussions of global convergence of accounting standards.

scholarly journals Evaluation of the Financial Performance of Tourism Companies Traded in BIST via a Hybrid MCDM Model

1970 ◽  
Vol 2 (4) ◽  
pp. 20-32
Author(s):  
Ahmet Aytekin
Keyword(s):  
Financial Performance ◽  
Added Value ◽  
Financial Ratios ◽  
Publicly Traded ◽  
Return On Equity ◽  
Coverage Ratio ◽  
Thomson Reuters ◽  
Asset Turnover ◽  
Inventory Turnover ◽  
Equity Ratio

Tourism, the smokeless industry, has increasing importance in the development of countries because it creates added-value and employment. In Turkey, one of the World's most visited countries, the importance of this sector makes itself felt in economic crisis periods. On the other hand, in terms of investors, tourism companies always have the potential to be included in their portfolios. In this context, the aim of this study evaluates the financial performances of tourism companies publicly traded in BIST. For this purpose, the data of 2014-2018 were obtained from the Thomson Reuters Datastream database. The current ratio, quick ratio, cash ratio, debt ratio, total debt/equity ratio, net margin, return on equity, interest coverage ratio, total asset turnover, inventory turnover, and receivable turnover were used as financial ratios. The CRITIC method, one of the objective weighting methods, was applied to determine the importance level of financial ratios. A hybrid model consisting of MAUT, PROMETHEE and TOPSIS was used for evaluation of the companies. These techniques are based on different perspectives and algorithms. In this model, Borda was applied for aggregation of each techniques' ranking values. Thus, the financial performance of the tourism companies for the years 2014-2018 was evaluated more effectively. In conclusion, the company with the best financial performance is Marmaris Altınyunus (MAALT) in this period.

scholarly journals The Impacts of Implementation Accounting Standard PSAK No. 24 (Revision 2004) on Post Employment Benefit Towards Company’s Performance

2011 ◽  
Vol 2 (2) ◽  
pp. 874
Author(s):  
Elfrida Yanti
Keyword(s):  
Financial Performance ◽  
Financial Analysis ◽  
Financial Statement ◽  
Financial Ratios ◽  
Current Ratio ◽  
Accounting Standard ◽  
Leverage Ratio ◽  
Future Performance ◽  
Equity Ratio ◽  
Profitability Ratios

Financial analysis is useful for all company to measure their performance and expected to show improvement result in order to determine the company’s condition. . Financial ratios are tools to help anticipate the future conditions and to predict some actions or strategies that will useful in improving the company’s future performance, which is from evaluating the previous financial statement. Using financial ratios this research tries to impose one indicator, post employment benefit and how it would impact company financial performance. PT. ABC Will be the object case which implementation the post employment benefit based on particular regulation PSAK No. 24 (revision 2004). The researcher would like to focuses on the profitability ratios by Return on Asset ratio (ROA), liquidity ratio by Current Ratio (CR) and the leverage ratio by Debt-Equity ratio. 

scholarly journals Determining The Impact Of Capitalising Long-Term Operating Leases On The Financial Ratios Of The Top 40 JSE-Listed Companies

2013 ◽  
Vol 12 (6) ◽  
pp. 655
Author(s):  
Rikus R De Villiers ◽  
Sanlie L Middelberg
Keyword(s):  
Great Part ◽  
Balance Sheet ◽  
Financial Ratios ◽  
Current Standard ◽  
Accounting Standard ◽  
Current Accounting ◽  
Operating Leases ◽  
Top 40 ◽  
The Impact

Operating leases forma great part of companies financing structures in todays economicenvironment. Some accounting standard-setters and other users of financialstatements are of the opinion that the current standard on accounting foroperating leases, IAS 17, does not provide sufficient guidelines on the disclosureof a companys leasing activities. The current accounting standard on leasesprovides companies with the opportunity to classify lease contracts intodifferent classes which leads to off-balance-sheet financing. This problem iscurrently being addressed by the IASB as they are in the process of developingan improved standard on leases.The main focus ofthis paper is to determine the impact of the improved accounting standard onthe financial statements and the resulting financial ratios of theJSETop40 companies when operating leases are accounted for ason-balance-sheet debt. The differences between the current IAS 17 and theExposure draft (ED/2010/9) are identified and the comparison indicatessignificant differences between these two approaches on accounting foroperating lease activities.The focus of the IASBin developing this exposure draft was to provide the users of financialstatements with a universal picture of the leasing activities that the companyis engaged in. The findings include that this objective is achieved as usersare not left uninformed about any of the financing activities that stakeholdersare exposed to if indeed a company is engaged in operating lease activities.The study also revealed that the capitalising of long-term operating leaseswill have a significant effect on the key financial ratios that stakeholdersuse to interpret a companys financial performance.

Pengaruh Financial Leverage terhadap Financial Performance pada Sektor Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2015

2018 ◽  
Vol 9 (2) ◽  
pp. 33-48
Author(s):  
Rivaldy Februansyah ◽  
Ika Yanuarti
Keyword(s):  
Financial Performance ◽  
Manufacturing Sector ◽  
Linear Regression Analysis ◽  
The Other ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Coverage Ratio ◽  
Equity Ratio ◽  
Internal Fund

The manufacturing sector is one of the most dominant economic sectors in in achieving growth and development in Indonesia. It needs adequate fund to develop its business. The sources of fund are from internal and external. The firm usually optimized the usage of internal fund prior to external fund. The internal fund comes from equity while the external funds are from debt and stock. Debt is also known as financial leverage. There is a phenomenon that the usage of debt increased the firm’s financial performance, since interest on debt could lower the payment of tax (tax shield). On the other side, the higher the financial leverage the higher the risk of bankruptcy. This research aims to analyze whether financial leverage has an influence on financial performance in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) period 2015. The method of analysis used in this research is multiple linear regression analysis. This research uses quantitative approach with a sample of 140 listed companies in the manufacturing industry. The firm’s financial performance could be measured by the financial ratios. Financial Leverage ratios are ratios that measure the ability of firm’s to meet its financial obligation and the level of usage debt as compared to equity. There are several financial leverage ratios that used in this research, such as Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR). Financial performance indicates the ability of firm to generate profit and measured by Profitability Ratio. Return on Asset (ROA) is one of the Profitability Ratio. The statistical result shows that Debt Ratio (DR) negatively affect Return on Asset (ROA) and Interest Coverage Ratio (ICR) positively affect Return on Asset (ROA). Meanwhile, Debt to Equity Ratio (DER) and Long Term Debt Ratio (LTDR) did not affect Return on Asset (ROA). On the other hand, result shows that Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR) affect Return on Asset (ROA) simultaneously. Keywords: Financial Leverage, Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), Long Term Debt Ratio (LTDR), Financial Performance, Return on Assets (ROA)

PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM PERUSAHAAN LQ45 PERIODE 2013-2017

2019 ◽  
Vol 5 (1) ◽  
pp. 1-17
Author(s):  
Nuri Maulana Ikhsan ◽  
Yohanes Rully Dermawan
Keyword(s):  
Stock Prices ◽  
Share Price ◽  
Financial Ratios ◽  
Total Asset ◽  
Current Ratio ◽  
Return On Equity ◽  
Book Value ◽  
Earnings Per Share ◽  
Asset Turnover ◽  
Equity Ratio

This study aims to determine the effect of financial ratios on stock prices. Financial ratios used in this study is the Current Ratio, Debt to Equity Ratio, Return On Equity, Total Asset Turnover, Earning Per Share, and Price to Book Value. The type of research used is quantitative to observe the effect of financial ratios on stock prices. This study used a purposive sampling method with a total sample of 20 companies registered in the LQ45 index for the period 2013-2017 and fulfilling the research criteria. The statistical method used is multiple linear regression analysis The results of this study indicate that partially, the variable debt to equity ratio, return on equity, total asset turnover, earnings per share, and price to book value have a significant partial effect on stock prices, while the current ratio variable does not have a partial significant effect on stock prices. Simultaneously the current ratio variable, debt to equity ratio, return on equity, total asset turnover, earnings per share, and price to book value have a significant simultaneous effect on stock prices. And the most dominant influential variable is earnings per share. Keywords:  Current Ratio, Debt to Equity Ratio, Return On Equity, Total Asset Turnover, Earning Per Share, Price to Book Value, and Stock Price.  

Effect of Capital Structure Determinants on Profitability: With Special Reference to Iron and Steel Sector Units of India

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Neeraj Gogia
Keyword(s):  
Capital Structure ◽  
Sample Size ◽  
Financial Risk ◽  
Iron And Steel ◽  
Coverage Ratio ◽  
Independent Variables ◽  
Operating Profit ◽  
Return On Capital ◽  
Steel Sector ◽  
Equity Ratio

This paper is an attempt to study the capital structure of Indian Steel Industry and its major determinants. In this study, almost 50% of companies out of 22 sample size are bearing highly debt driven in their capital structure and it creates financial risk to the debt driven companies. Debt driven companies have obligation to pay interest irrespective of profit made or loss incurred by the firms. Hence we tried to find out which are the various factors significantly explaining the return on capital employed. For which we have considered four independent variables from early studies and employed correlation analysis, multiple regression analysis techniques and ANOVA in this study to test the dependency of the return on capital employed ratio on independent variables. The researcher found three variables such as debt equity ratio, operating profit ratio and interest coverage ratio respectively having significant impact on the return on capital employed to ratio of selected sample size of steel companies.

scholarly journals FAKTOR PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM PERUSAHAAN JAKARTA ISLAMIC INDEX (JII)

2021 ◽  
Vol 12 (1) ◽  
pp. 42-55
Author(s):  
Nadiah Ayu Salsabila ◽  
Titis Miranti
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Profit Margin ◽  
Stock Index ◽  
Financial Ratios ◽  
Analysis Model ◽  
Current Ratio ◽  
Net Profit ◽  
Equity Ratio

Jakarta Islamic Index is a stock index in the IDX that can use as an alternative In Islamic investment. In choosing an investment object in Islamic stocks, it necessary to pay attention to the financial ratios and stock prices of companies. The purpose of this study was to determine the effect of financial ratios on stock prices on companies listed on the Jakarta Islamic Index (JII). The type of this research is quantitative. The population of 56 companies registered on the Jakarta Islamic Index (JII) for the 2012-2018 period with a sample of 11 companies. The analysis model use panel data regression using Eviews software. The type of data uses secondary data accessed through the Indonesia Stock Exchange (IDX) website. The results showed that earning per share variable has a significant effect on stock prices. While the current ratio, debt to equity ratio, total assets turnover and net profit margin variables have no significant impact on stock prices. Simultaneously variables of current ratio, debt to equity ratio, total assets turnover, net profit margin and earning per share have significant effects on stock prices. The contribution of this research can use as a reference for companies to pay attention to financial ratios that affect stock prices.

Instructional Case: Worldwide Shipping Corporation Ltd: Early or Late Adoption of a New International Accounting Standard?

1999 ◽  
Vol 14 (2) ◽  
pp. 211-231
Author(s):  
Peter Lee ◽  
Pearl Tan
Keyword(s):  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Economic Consequences ◽  
International Accounting ◽  
Accounting Choice ◽  
Accounting Standard ◽  
The Impact ◽  
International Accounting Standard

The management of Worldwide Shipping Corporation Ltd (hereafter “Worldwide Shipping”) is confronted with a dilemma when a new international accounting standard on leases is introduced which contains a transitional provision allowing firms to defer implementation for a period of four years. Students are required to put themselves in the position of managers who have to weigh the adverse impact of early adoption of the new accounting standard against a responsibility for fair financial reporting. Worldwide Shipping is a multifaceted case that can be used as an accounting case study or a financial analysis study. The objectives of the case are threefold. First, it aims to provide students with a better understanding of the impact of off-balance sheet transactions (in this case, sale-leaseback contracts) on a firm's financial statements. Second, it requires students to examine implications of accounting choice on management compensation and debt-contracting costs, as well as the perplexing problem of recognition in financial statements vs. footnote disclosures. By putting students in the position of managers, the case increases students' awareness of the possible economic consequences arising from accounting choice. Third, it provides students with a useful exercise in the mechanics of effecting a change in accounting method using the retroactive method.

scholarly journals Predicting Stock Return of UAE Listed Companies Using Financial Ratios

2019 ◽  
Vol 8 (2) ◽  
pp. 214
Author(s):  
Arindam Banerjee
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Share Price ◽  
Financial Ratios ◽  
P Value ◽  
Dividend Yield ◽  
Value Analysis ◽  
Return On Equity ◽  
Equity Ratio ◽  
The Impact

Over the past few decades, numerous research across the globe has been conducted to examine the impact of firm performance on its stock return. The findings of these studies have been varied. In spite of the long standing research in this area, several attempt towards exploring this relationship has led to limited success owing largely to the existence of volatility across different stock markets. The variance in the volatility in these markets make it extremely difficult to obtain a uniform measure. A volatile stock market makes it difficult for the accounting and financial variables to accurately predict the stock returns (Feris & Erin, 2018).  The primary aim of this paper is aimed to investigate whether financial ratios can be used as a predictor of stock returns in the context of United Arab Emirates (UAE). The sample of the study includes thirty companies from the Dubai Financial Market (DFM) and Abu Dhabi stock exchange (ADX). Data is collected for the period of 2017. This research comprises of five independent variables namely, Earning Per Share ratio (EPS), Price Earning ratio (PE), Return on Equity ratio (ROE), Dividend Yield ratio (DY) and Debt Equity ratio (DE) and stock return is taken as the dependent variable. The study examines which among the given ratios can better predict stock returns both in the short run and the long run. The analysis is based on the regression analysis and correlation matrix. The results of correlation test revealed less multicollinearity between the variables and the regression results showed that Dividend Yield and the Return on Equity are statistically significant to predict the stock returns. However, Earning Per Share, Price Earning and Debt Equity could not predict the stock returns and thus can be safely considered as statistically insignificant. The t-stats test and p-value analysis were key indicators for arriving at the conclusion. The study can significantly benefit investors who can examine closely the dividend yield and return on equity while selecting an optimal portfolio. 

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