scholarly journals Measuring value creating growth

2008 ◽  
Vol 6 (1-4) ◽  
pp. 449-458
Author(s):  
Christian Petersen ◽  
Thomas Plenborg
Keyword(s):  
Accounting Information ◽  
Financial Ratios ◽  
Share Repurchases ◽  
Return On Equity ◽  
Economic Significance ◽  
Earnings Per Share ◽  
Accounting Numbers ◽  
Growth Firms ◽  
Is Value

’Growth’ as a concept is often not very well understood. Growth may be measured in a variety of ways (e.g., growth in turnover, earnings, and earnings per share, assets, and shareholders’ equity). Investors and other capital providers generally find it attractive to invest in ‘growth firms.’ For instance, earnings per share (EPS) figures are widely published and used by investors. An increase in EPS is seen as a signal of improved profitability. Likewise, growth in earnings measures such as EBIT, EBITA, EBITDA etc. seem to indicate that firms are value creating. Our paper discusses if and under what conditions growth in accounting variables (accounting numbers and financial ratios) is value creating. We find that growth in one-periodic earnings measures does not necessarily create wealth for shareholders. Only growth in economic income is value creating. Our analysis also provide evidence that users of accounting information should be aware of the quality of growth and distinguish between growth based on transitory vs. permanent components of earnings. Our analysis finally documents that growth in earnings per share or return on equity caused by share repurchases has no economic significance.

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.  

PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN EARNING PER SHARE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010 – 2019

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Susi Lusiana
Keyword(s):  
Data Collection ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Ratios ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Return On Equity ◽  
Earnings Per Share

The study of this research is to determine the effect of returning shares in manufacturing companies. This study uses the financial ratios contained in the company's financial statements. The financial ratios used in this study are the current ratio, return on equity, and earnings per share to stock returns in manufacturing companies listed on the Indonesian stock exchange in 2010-2019. This type of research used in this research is quantitative and the analytical method used is purposive sampling using SPSS 21 as many 10 manufacturing companies in the food, beverage, textile, rubber goods (tires), fisheries, and agriculture sectors. Data collection techniques are used by retrieving data through the website www.idx.co.id. The results showed that Current Ratio (CR) has a positive and significant effect on Stock Returns, Return On Equity (ROE) has a positive and significant effect on Stock Returns, and Earning Per Share (EPS) has a negative and significant effect on Stock Return.

scholarly journals Information Content of Earnings Managements: Implications on Growth and Value Companies

2016 ◽  
Vol 2 (1) ◽  
pp. 47-56
Author(s):  
Windu Mulyasari ◽  
Slamet Sugiri ◽  
Heyvon Herdhayinta
Keyword(s):  
Earnings Management ◽  
Information Content ◽  
Market Price ◽  
Accounting Information ◽  
Future Earnings ◽  
Cycle Growth ◽  
Incremental Information ◽  
Growth Firms ◽  
Management Behaviors

Objective: The purpose of this study is to investigate the pattern of earnings management on growth and value companies in Indonesia. This study predicts that earnings management has information contents. Therefore, earnings management tends to degrade the quality of earnings, then affect the future profitability. This study analyzes the effect of earnings management information content to the company's future profitability. This study provides an understanding about accounting information at certain market price levels for growth and value companies. Findings: Findings of this study indicate the differences between earnings management influence on growth and value companies. The results also support the differences of relative incremental information content of earnings management on growth and value companies. The growth firms tend to do earnings management and have higher profitability compared to the value firms. The implication is that the incremental information content of earnings management on growth firms is lower than those of the value firms to predict future profitability.   Implication: The contribution of this research is to provide an in-depth review on earnings management study associated with company life cycle (growth and value), as well as  to give additional understanding about the existence of incremental information content of earnings management. Thus, firms show different earnings management behaviors and ultimately those behaviors affect the quality of profit to predict future earnings

scholarly journals Fenomena Saham Tidur dan Kinerjanya

2016 ◽  
Vol 17 (2) ◽  
pp. 71
Author(s):  
Erpina Desy Desy Sihombing ◽  
Supramono Supramono
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Ratios ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Market Capitalization ◽  
Earnings Per Share

<em>Sleeping stocks are the stocks that are not actively traded in a certain period. The aim of this is to analyze performance of the companies whose stocks are “sleeping” in Indonesia Stock Exchange. Employing purposive sampling technique, 66 stocks were selected. The analysis of the companies’ performance was done by using market capitalization and the financial ratios that consist of return on asset ratio, return on equity and earnings per share, during 2010-2012. The result of this study showed companies with small capitalization and poor perfomance tend to have sleeping stocks.</em>

scholarly journals Does IFRs convergence improve quality of accounting information? Evidence from the Chinese stock market

2012 ◽  
Vol 9 (4) ◽  
pp. 187-196 ◽  
Author(s):  
Wen Qu ◽  
Michelle Fong ◽  
Judy Oliver
Keyword(s):  
Stock Market ◽  
Accounting Information ◽  
Chinese Stock Market ◽  
Book Value ◽  
Earnings Per Share ◽  
Income Statement ◽  
Quality Of Accounting Information ◽  
Security Price ◽  
Using Data

This paper aims to examine whether the 2007 IFRS converged Chinese GAAP has improved the quality of accounting information for investors in the A-share market in China. We analyse investor’s reaction to financial information released pre and post IFRS convergence in China. Multiple regression analysis was employed using data from 309 listed Chinese companies. The findings of this study show that earnings per share, relative to book value of equity, is a stronger explanatory factor of market return in both the pre- and post IFRS convergence periods, suggesting that investors rely heavily upon earnings released by listed companies when making security price decisions in the Chinese stock market. The results also suggest that investors’ reliance on the income statement information for investment decisions becomes greater in the post IFRS convergence period.

scholarly journals Accounting Information and Market Value of Quoted Manufacturing Firms: Panel Data Evidence from Nigeria

2020 ◽  
Vol 5 (1) ◽  
pp. 1-16
Author(s):  
Okoro Innocent ◽  
E.A.L. Ibanichuka ◽  
L.C. Micah
Keyword(s):  
Random Effect ◽  
Accounting Information ◽  
Market Value ◽  
Fixed Effect ◽  
Least Square ◽  
Causality Test ◽  
Cross Sectional ◽  
Manufacturing Firm ◽  
Return On Equity ◽  
Earnings Per Share

This study the relationship between accounting information and the market value of quoted firms in Nigeria. The general objective was to examine if accounting information have any effect on market value of quoted firms.  Cross sectional data was sourced from financial statement of 23 manufacturing firm from 2008-2017. Market value of the firms was modeled as a function of earnings per share, return on equity and dividend per share. Ordinary least square method of cointgration, unit root and granger causality test was used to determine the extent to which human resource cost affect quality of financial report. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model.  The study found that the independent variables explained 79 percent variation on the market value of the quoted firms. The beta coefficient of the variables indicates return on equity; earnings per share, dividend per share have positive effect on the market value of the quoted firms. From the regression summary, the study concludes that there is significant relationship between accounting information and market value of the quoted firms. The study recommends that management of the firms should formulate dividend policy that enhances the market value of the firms. Corporate strategies should be directed toward internal and external factors that affect earnings per share.

scholarly journals Faktor Fundamental, Suku Bunga, Nilai Tukar dan Return Saham Perusahaan Sektor Industri Barang Konsumsi

1970 ◽  
Vol 3 (01) ◽  
pp. 60-71
Author(s):  
Basis G. Andamari
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Stock Exchange ◽  
Accounting Information ◽  
Control Sample ◽  
Jel Classification ◽  
Future Research ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Equity Ratio

A B S T R A C T This study aims to examine the effect of return on equity, debt equity ratio, earnings per share, interest rates and the Exchange Rate To return under common control. Sample is the company-consumer goods industry sector company listed on the Indonesian Stock Exchange 2008-2011. Testing is done by multiple linear regression. Test results showed that the earnings per share and interest rates showed a significant influence under common thing against return. Return on equity, debt to equity ratio, Exchange Rate indicates the findings of no effect. Results showed that the accounting information is a prayer One That information is used to review adopted a decision to invest. Future research is recommended to review conduct tests with samples of different industries and adding new accounting information in addition to that already examined. A B S T R A K Penelitian bertujuan menguji pengaruh return on equity, debt equity of ratio, earning per share, suku bunga dan nilai tukar terhadap return saham. Sampel adalah perusahaan-perusahaan sektor industri barang konsumsi yang terdaftar di BEI tahun 2008–2011. Pengujian dilakukan dengan regresi linier berganda. Hasil pengujian menunjukkan bahwa earning per share dan suku bunga menunjukkan pengaruh yang signifikan terhadap return saham. Return on equity, debt to equity ratio, nilai tukar menunjukkan hasil tidak berpengaruh. Hasil penelitian menunjukkan bahwa informasi akuntansi merupakan salah satu informasi yang digunakan untuk mengambil keputusan berinvestasi. Penelitian mendatang disarankan untuk melakukan pengujian dengan sampel industri berbeda dan menambahkan informasi akuntansi baru selain yang telah diteliti. JEL Classification: G14, G10

Pengaruh ROE, EPS, OCF, Size, DER, CR dan Growth Terhadap Kebijakan Dividen pada Perusahaan Manufaktur di Bursa Efek Indonesia (BEI)

2019 ◽  
Vol 14 (2) ◽  
pp. 80
Author(s):  
Crystha Armereo ◽  
Pipit Fitri Rahayu
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Regression Result ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Dividend Payout ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Equity Ratio ◽  
Operating Cash Flow

Abstract The objective of this research is to identify the influence of return on equity, earnings per share, operating cash flow, size, debt to equity ratio, current ratio, and growth to dividend payout. Data collected from manufacturing companies that listed on Indonesian Stock Exchange for three years period 2014 to 2016. Sample selected by using purposive sampling method. There are 38 companies meet the criteria and used as sample. The statistical method used in this research is multiple regression. Result of this research showed that return on equity, earnings per share, and growth have influence dividend payout but operating cash flow, size, debt to equity ratio, and current ratio have no influence towards dividend policy. Keywords: Dividend Policy, Return on Equity, Earnings per Share, Current Ratio,   Operating Cash Flow Size

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