scholarly journals Company mission statements and financial performance

2005 ◽  
Vol 2 (3) ◽  
pp. 28-35 ◽  
Author(s):  
Peter Atrill ◽  
Mohammed Omran ◽  
John Pointon
Keyword(s):  
Stock Returns ◽  
Service Sector ◽  
Customer Orientation ◽  
Value Relevance ◽  
Mission Statements ◽  
Return On Equity ◽  
Dummy Variables ◽  
Dummy Variable ◽  
A Value ◽  
A Company

Is there a value-relevance associated with the disclosure of a corporate mission? In this study the mission orientation of 143 UK listed companies are analysed according to their orientation towards shareholders, stakeholders, customers and markets. Performance is then analysed by means of multiple regressions, allowing for beta, gearing, size and tax, as control variables, and taking account of mission orientation by means of a dummy variable in separate regressions. As to the accounting return on equity, dummy variables were not significant in the service sector. In the non-service sector the shareholder-orientated dummy was relevant to the accounting return on equity over three years, but the overall model was not very significant. However, three-year stock returns in the service sector are strongly influenced by whether company mission is shareholder orientated or not. In the non-service sector, six-year stock returns, and also excess returns, are influenced by whether a company is stakeholder orientated or not. Mission, according to customer orientation, did not affect performance. The overall conclusion is that there may be some value-relevance attached to mission orientation, although in this sample it was invariant to customer-orientation.

scholarly journals Faktor-Faktor yang Mempengaruhi Return Saham Syariah Perusahaan Sub Sektor Tourism, Restaurant, and Hotel

2021 ◽  
Vol 1 (2) ◽  
pp. 384-397
Author(s):  
Harivani Nurwiyati ◽  
Diharpi Herli Setyowati ◽  
Destian Arshad Darulmalshah Tamara
Keyword(s):  
Stock Returns ◽  
Service Sector ◽  
Inflation Rate ◽  
Stock Index ◽  
Current Ratio ◽  
Significance Level ◽  
Return On Equity ◽  
Panel Data Regression ◽  
Negative Effect ◽  
Equity Ratio

The purpose of this study is to analyze the influence of current ratio, debt to equity ratio, return on equity, and inflation rate to return stock of sub sector tourism, restaurant, and hotel companies listed on Indonesia Sharia Stock Index (ISSI). The population used is sharia service sector companies listed on ISSI. The sample is determined using purposive sampling. This research is a descriptive study with a quantitative approach. The data analysis method used is a panel data regression. Based on the results with a significance level of 5%, this study shows: Current ratio, Debt to equity ratio, and Inflation rate partially have No. significant effect to return stock. Return on equity partially has asignificant negative effect to return stock. Current ratio, debt to equity ratio, return on equity, inflation rate simultaneously have a significant effect on stock returns.

Value Relevance of DuPont Identity

2017 ◽  
Vol 7 (2) ◽  
pp. 48
Author(s):  
Pradeep Kumar Gupta
Keyword(s):  
Stock Returns ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Empirical Support ◽  
Operating Efficiency ◽  
Valuation Theory ◽  
Financial Leverage ◽  
Return On Equity ◽  
Use Efficiency

This study provides an empirical support to the relevance of very prevalent and well-established almost a century ago the DuPont Identity in the context of India, one of big 10 emerging markets (Garten, 1997). The DuPont Identity, a familiar form of financial statement analysis (Soliman, 2008) for use in equity valuation (Nissim and Penman, 2001), decomposes the return on equity (ROE) into three multiplicative components: net profit margin (operating efficiency), assets turnover ratio (asset use efficiency) and equity multiplier (financial leverage). The present study is based on the valuation theory which considers the viewpoint of equity investors to empirical investigate the value relevance of accounting information (Beisland, 2009). In this study, value relevance of three measures of accounting information used in the DuPont Identity is investigated for 228 manufacturing firms listed in National Stock Exchange (NSE) of India over a period of ten years from 2006-07 to 2015-2016. The findings indicate that the firms should focus on asset use efficiency and financial leverage components of DuPont Identity since a statistically significant impact of these two components on the stock returns is found. The strategic use of asset efficiency and financial leverage inevitably ensures the operating efficiency of the firms. This empirical investigation is an addition to the value relevance literature with an important insight to the firms and the participants of stock market about the usefulness of DuPont Identity in the context of India.

scholarly journals Value Relevance of Accounting Information in Explaining Stock Returns in Sri Lanka

2017 ◽  
Vol 12 (10) ◽  
pp. 223
Author(s):  
Yathra Mullage Chithrasheeli Gunaratne ◽  
P. A. Niluka Surangi Anuradha
Keyword(s):  
Sri Lanka ◽  
Stock Returns ◽  
Performance Measures ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Performance Measure ◽  
Investment Strategies ◽  
Return On Equity ◽  
Accounting Performance

The value relevance of accounting information is an important area in accounting researches. However the literature provides contradictory conclusions on the value relevance of accounting information in different stock exchanges and there is a very limited knowledge in this regard in Sri Lankan context. Hence this study endeavored to investigate the value relevance of accounting information in explain stock returns considering three traditional accounting performance measures: Earnings Per Share (EPS), Return on Equity (ROE) and Return on Investment (ROI) as the proxy for accounting information. The study was conducted with the hypothesis that the traditional accounting performance measures are significant in explaining stock returns in Sri Lanka. A sample of 1695 firm year observations were used for the study covering 113 companies in Colombo Stock Exchange for fifteen years period from 1999 to 2013. This study used Easton and Harris (1991) formal valuation model. Panel data regression analysis technique was applied to test the relative information content of each performance measure to identify the best performance measure which could explain the stock returns in Sri Lanka. The study revealed that the EPS and ROI are significant performance measures and the EPS is the best performance measure which could explain the significant variations of stock returns in Sri Lanka. The results suggest that the market participants in the Colombo Stock Exchange should pay more attention on EPS and ROI. Meantime they must consider other determinants to develop their investment strategies.

scholarly journals Structural Breaks and Volatility Spillovers: The Case of the US and Canadian Stock Markets

2019 ◽  
Vol 11 (2) ◽  
pp. 30
Author(s):  
Chikashi Tsuji
Keyword(s):  
Stock Returns ◽  
Structural Breaks ◽  
Structural Break ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Dummy Variables ◽  
Volatility Spillovers ◽  
Dummy Variable ◽  
The Us ◽  
Parameter Values

This paper investigates the relations of structural breaks and volatility spillovers by using the US and Canadian stock return data. Specifically, applying spillover MGARCH models without and with structural break dummy variables to the two stock returns, this study derives the following interesting evidence. (1) First, we reveal that for both the US and Canadian stock returns, the volatility persistence parameter values in our spillover MGARCH models decline when structural break dummy variables are incorporated. (2) Second, we further clarify that when we do not take structural breaks into account, the spillover effect was unidirectional from Canada to the US. However, when we take structural breaks into consideration, the results from our spillover MGARCH model with structural break dummies demonstrate that the volatility spillover effects between the US and Canada become bidirectional. (3) Third, we furthermore reveal that around the Lehman Brothers bankruptcy in 2008, the time-varying volatilities derived from our spillover MGARCH model with structural break dummy variables show slightly higher values than those volatilities from our spillover MGARCH model with no structural break dummy variable.

The incremental information content of audit opinion

2016 ◽  
Vol 17 (2) ◽  
pp. 139-169 ◽  
Author(s):  
Panayiotis Tahinakis ◽  
Michalis Samarinas
Keyword(s):  
Stock Returns ◽  
Information Content ◽  
Value Relevance ◽  
Future Research ◽  
Content Type ◽  
Audit Opinion ◽  
Valuation Model ◽  
A Value ◽  
Incremental Information ◽  
Firm Data

Purpose – The purpose of this paper is to examine the incremental information content of audit opinion while considering opinion determinants, such as auditor and auditee size, or a firm’s financial state. Design/methodology/approach – A market valuation model is employed using US firm data collected over 30 years. The model relates stock returns to earnings and incorporates as additional variables auditors’ opinion types, opinion determinants and their interactions with audit expression. Findings – The findings suggest that audit opinion has a significant market impact. The estimated positive or negative information content of the audit opinion types is associated with certain opinion determinants, such as auditor and auditee size and a firm’s financial state. Research limitations/implications – Additional firm-year observations regarding certain opinion qualifications could benefit future research. Practical implications – This study offers useful insights by demonstrating the importance of auditing profession to the users of financial statements. It examines investors’ perception of each audit opinion type and the conditions under which this expression has the most serious effects. The results demonstrate the role of audit opinion and its cause-effect relationship with various economic events, allowing regulators not only to track the efficiency of various audit policy changes but also act preventively and amend the regulatory framework. Originality/value – This paper empirically supports the significance of the auditing process and audit opinions by examining investor perceptions. It employs a value relevance model, in contrast to market-based research that adopts an event study methodology.

scholarly journals DETERMINASI RASIO KEUANGAN TERHADAP RETURN SAHAM

Equity ◽  
2016 ◽  
Vol 19 (1) ◽  
pp. 1
Author(s):  
Dian Yunita Syaiful
Keyword(s):  
Stock Returns ◽  
Financial Statements ◽  
Capital Gains ◽  
Current Ratio ◽  
Return On Equity ◽  
Company Stock ◽  
Stock Investment ◽  
Equity Ratio ◽  
A Company ◽  
Positive Effect

Return or the return on investment is a prime destination for investors in investing at a company. Stock investment will provide a benefit or return by the way, is the first to sell the stock until the price is strong, often referred to as capital gains or waiting dividend, which is part of the company profits are distributed to shareholders. The company's financial statements can be used as a basis for investors to take a decision to invest in shares in a particular company by taking into account financial ratios of the company. This study aims to determine the effect and significance of the test ratio Current Ratio (CR), Debt to Equity Ratio (DER), Return on Equity (ROE), and Price Earning Ratio (PER) to return stock in LQ-45. period in this study is from the year 2009 until 2013. model of analysis used is multiple linear regression. The results showed partially significant effect on stock returns is the Current Ratio (CR), Return on Equity (ROE), and Price Earning Ratio (PER) where ROE is the dominant variable significant positive effect on stock returns. Simultaneously Current Ratio (CR), Debt to Equity Ratio (DER), Return on Equity (ROE), and Price Earning Ratio (PER) has an effect on stock returns by 59%, while 41% are influenced by other factors not examined in the study this.

DETERMINASI RASIO KEUANGAN TERHADAP RETURN SAHAM

Equity ◽  
2016 ◽  
Vol 19 (1) ◽  
pp. 1
Author(s):  
Dian Yunita Syaiful
Keyword(s):  
Stock Returns ◽  
Financial Statements ◽  
Capital Gains ◽  
Current Ratio ◽  
Return On Equity ◽  
Company Stock ◽  
Stock Investment ◽  
Equity Ratio ◽  
A Company ◽  
Positive Effect

Return or the return on investment is a prime destination for investors in investing at a company. Stock investment will provide a benefit or return by the way, is the first to sell the stock until the price is strong, often referred to as capital gains or waiting dividend, which is part of the company profits are distributed to shareholders. The company's financial statements can be used as a basis for investors to take a decision to invest in shares in a particular company by taking into account financial ratios of the company. This study aims to determine the effect and significance of the test ratio Current Ratio (CR), Debt to Equity Ratio (DER), Return on Equity (ROE), and Price Earning Ratio (PER) to return stock in LQ-45. period in this study is from the year 2009 until 2013. model of analysis used is multiple linear regression. The results showed partially significant effect on stock returns is the Current Ratio (CR), Return on Equity (ROE), and Price Earning Ratio (PER) where ROE is the dominant variable significant positive effect on stock returns. Simultaneously Current Ratio (CR), Debt to Equity Ratio (DER), Return on Equity (ROE), and Price Earning Ratio (PER) has an effect on stock returns by 59%, while 41% are influenced by other factors not examined in the study this.

scholarly journals The State and Trends of Enterprises Efficiency on the Basis of Modern Indicators

2020 ◽  
Author(s):  
Yuriy M. Derev'yanko ◽  
Olha A. Lukash ◽  
Maryna A. Litsman ◽  
Alona O. Svitlychna
Keyword(s):  
Capital Expenditures ◽  
Return On Assets ◽  
Earned Income ◽  
Return On Equity ◽  
Flow Problems ◽  
A Value ◽  
Monetary Unit ◽  
Business Profit ◽  
The Impact ◽  
A Company

One of the most relevant approaches to determining efficiency is rightly considered the attractiveness of the company in terms of investing in it and receiving remuneration by the owners or managers of the company. From these positions, there are three most relevant indicators of efficiency analysis can be distinguished: Return on Equity (ROE), Return on Assets (ROA), and return on EBITDA (EBITDA Margin). The ROE indicator shows how much profit each invested monetary unit brings on capital and is considered a measure of how efficiently the company's management uses its capital to make a profit. Investors most often consider ROE as acceptable provided that its value is not lower than 14 %, and in the case of a value of less than 10 % is a bad value. ROA describes how well a company uses its assets, determining how profitable a company is with respect to its total assets. ROA is best used when comparing similar companies or when comparing a company with its efficiency over previous periods. ROA takes into account the debt obligations of the company, unlike other indicators (in particular, ROE). The EBITDA margin is considered the monetary rate of return on transactions with real money before capital expenditures, taxes, and capital structure. This eliminates the impact and consequences of non-cash expenses, such as depreciation. Investors and owners can understand how much money is generated for each monetary unit of earned income, and use such an indicator as a guideline when comparing different companies. The low EBITDA Margin indicates that the business has problems with profitability, as well as cash flow problems. On the other hand, a relatively high EBITDA Margin means that business profit is stable. Keywords: efficiency, enterprise, indicator, management.

Value Relevance of Disaggregated Information: An Examination of the Rate and Volume Analysis of Bank Net Interest Income

2019 ◽  
Vol 34 (1) ◽  
pp. 19-43
Author(s):  
Qing L. Burke ◽  
Terry D. Warfield ◽  
Matthew M. Wieland
Keyword(s):  
Stock Returns ◽  
Value Relevance ◽  
Comprehensive Analysis ◽  
Funding Sources ◽  
Rate Analysis ◽  
Interest Income ◽  
Performance Drivers ◽  
Income Measure ◽  
Important Form ◽  
Is Value

SYNOPSIS A potentially important form of financial information disaggregation is to segregate the change in an income measure into its underlying performance drivers. In this study, we perform a comprehensive analysis of the usefulness of such disaggregation to investors. We utilize the volume and rate analysis in banks' 10-K filings, in which banks disaggregate annual changes in net interest income into changes in the balances (“volume variance”) and changes in the rates (“rate variance”) of assets and liabilities. We document that volume and rate variances are associated with bank characteristics, including market power, funding sources, and credit risk. We find volume and rate variances are predictive of future net interest income and are positively associated with stock returns and prices, suggesting the disaggregated information is value relevant. Our study informs regulators and users by showing that disaggregated information along volume and rate dimensions has predictive and confirmatory value.

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