scholarly journals FINANCIAL HEALTH AND FIRM PERFORMANCE: EVIDENCE FROM INDONESIA’S LISTED STATE-OWNED ENTERPRISES

2021 ◽  
Vol 5 (2) ◽  
pp. 275
Author(s):  
Reynaldi Hermansjah ◽  
Sugiarto Sugiarto ◽  
Gracia Shinta S. Ugut ◽  
Edison Hulu
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Stock Exchange ◽  
Market Value ◽  
Tobin’S Q ◽  
Financial Health ◽  
Tobin's Q ◽  
Health Score ◽  
Real World Application ◽  
The Relationship

KEP-100 / MBU / 2002 yang diterbitkan oleh kantor Kementerian Badan Usaha Milik Negara (BUMN) pada bulan Juni 2002 (yang selanjutnya akan dituliskan sebagai “KEP-100 / MBU / 2002”)  disusun untuk mengevaluasi kesehatan keuangan BUMN. Tujuan penelitian ini ada dua, pertama untuk menganalisis skor kesehatan keuangan BUMN yang terdaftar di Bursa Efek Indonesia, dan kedua untuk mengevaluasi hubungan antara skor kesehatan keuangan dan kinerja perusahaan dari semua BUMN yang terdaftar. Hasil penelitian menunjukkan bahwa skor kesehatan keuangan BUMN memiliki hubungan yang signifikan dengan kinerja perusahaan yang diukur dengan skor Tobin's Q masing-masing BUMN. Dari hasil tersebut dapat disimpulkan bahwa SK KEP-100 / MBU / 2002 yang dikeluarkan oleh Kementerian Badan Usaha Milik Negara (BUMN) dapat digunakan untuk mengukur skor kesehatan keuangan perusahaan, dan skor kesehatan keuangan dari BUMN yang terdaftar di Indonesia memiliki pengaruh yang signifikan dan berdampak positif terhadap kinerja perusahaan yang diukur dengan log dari Tobin's Q.Pada aplikasinya, penggunaan perhitungan tingkat kesehatan keuangan BUMN berdasarkan KEP-100 / MBU / 2002 diharapkan akan dapat membantu BUMN untuk memprediksikan nilai market di pasaran menggunakan nilai tingkat kesehatan keuangan tersebut. “KEP-100/MBU/2002” of the Indonesia Ministry of State-Owned Enterprises (SOEs) (which later on will be reffered as “KEP-100/MBU/2002” ) are constructed to evaluate the financial health of SOEs. This study purposes is two-folds, firstly to analyze the financial health score of listed SOEs in Indonesian Stock Exchange, and secondly to evaluate the relationship between the financial health score and firm performance of all listed SOEs. The results show that SOE’s financial health score has a significant relationship with firm performance, measures by each SOEs’ Tobin’s Q score. From the results we can conclude that “ KEP-100/MBU/2002” is applicable to measure firm’s financial health score, and financial healh score of Indonesia’s listed SOEs have a notable impact to firm performance measured by the log of Tobin’s Q. In the real world application, the use of state-owned enterprise financial health score calculations based on KEP-100 / MBU / 2002 is expected to be able to assist SOEs in predicting market value in the market using this financial health score value.

Effect of ownership structure and board structure on firm value: evidence from India

2017 ◽  
Vol 17 (4) ◽  
pp. 700-726 ◽  
Author(s):  
Rakesh Mishra ◽  
Sheeba Kapil
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Performance Measures ◽  
Board Structure ◽  
Tobin’S Q ◽  
Reverse Causality ◽  
Tobin's Q ◽  
Data Set ◽  
Content Type ◽  
The Relationship

Purpose This paper aims to explore the relationship of promoter ownership and board structure with firm performance for Indian companies. Design/methodology/approach Corporate governance structures of 391 Indian companies out of CRISIL NSE Index (CNX) 500 companies listed on national stock exchange (NSE) have been studied for their impact on performance of companies. Panel data regression methodology has been used on data for five financial years from 2010 to 2014 for the selected companies. Performance measures considered are market-based measure (Tobin’s Q) and accounting-based measure (return on assets [ROA]). Findings The empirical findings indicate that market-based measure (Tobin’s Q) is more impacted by corporate governance than accounting-based measure. There is significant positive association between promoter ownership and firm performance. It is also indicated that the relationship between promoter ownership and firm performance is different at different levels of promoter ownership. Board size is found to be positively related to ROA; however, board independence is not found to be related to any of the performance measures. Research limitations/implications Limitations of the study are in terms of data methodology and possible omission of some variables. It is felt that endogeneity and reverse causality might be better addressed using simultaneous equation methodology. Originality/value The paper adds to the emerging body of literature on corporate governance performance relationship in Indian context using a reasonably wider and newer data set.

scholarly journals Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5

2020 ◽  
Vol 11 (22) ◽  
pp. 276-304
Author(s):  
Saarce Elsye Hatane ◽  
Felicia Nathania ◽  
Jocelyn Lamuel ◽  
Fenny Darusman ◽  
Devie
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Market Value ◽  
The Other ◽  
Tobin’S Q ◽  
Net Income ◽  
Tobin's Q ◽  
Asean Countries

This study aims to find the effect of Intellectual Capital Disclosure (ICD) and Corporate Governance (CG) on firm performance in ASEAN countries. Firm performance is divided into accounting-based performance and market-based performance. The accounting-based performance consists of Non-Discretionary Net Income (NDNI) and Cash Flow Operations (CFO), while market-based performance consists of Tobin’s Q and Market-to-Book Ratio (MBR). The measurement of ICD components uses a scoring system. The sample of this research is 112 firms in the industrial technology listed in the stock exchange of ASEAN-5 between 2011 and 2018. This study finds that NDNI increases when firms increase RCD quality. No ICD components are capable of affecting CFO. On the other hand, SCD is a variable that decreases NDNI value. BGEN is found to reduce NDNI and CFO values. RCD is also the only ICD component that can increase market-based performance, especially MBR. HCD consistently lowers the values of MBR and Tobin’s Q. BSIZE holds a significant role in raising Tobin’s Q score, and BGEN lowers MBR instead. BIND has no part in the market-based performance, but it significantly lowers NDNI value. This study adds another view to ICD’s benefits from two firm performance perspectives, accounting-based performance and market-based performance, especially in ASEAN-5.

scholarly journals The relationship of capital structure decisions with firm performance: A study of the engineering sector of Pakistan

2012 ◽  
Vol 2 (1) ◽  
pp. 245 ◽  
Author(s):  
Abdul Ghafoor Khan
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Negative Relationship ◽  
Engineering Industry ◽  
Tobin’S Q ◽  
Financial Leverage ◽  
Short Term ◽  
Tobin's Q ◽  
Relationship Of ◽  
The Relationship

Purpose: The purpose of this study is to find the relationship of capital structure decision with the performance of the firms in the developing market economies like Pakistan.Methodology: Pooled Ordinary Least Square regression was applied to 36 engineering sector firms in Pakistani market listed on the Karachi Stock Exchange (KSE) during the period 2003-2009.Findings: The results show that financial leverage measured by short term debt to total assets (STDTA) and total debt to total assets (TDTA) has a significantly negative relationship with the firm performance measured by Return on Assets (ROA), Gross Profit Margin (GM) and Tobin’s Q. The relationship between financial leverage and firm performance measured by the return on equity (ROE) is negative but insignificant. Asset size has an insignificant relationship with the firm performance measured by ROA and GM but negative and significant relationship exists with Tobin’s Q. Firms in the engineering sector of Pakistan are largely dependent on short term debt but debts are attached with strong covenants which affect the performance of the firm.Originality/Value: This is first paper to study an individual sector like engineering industry in Pakistan on the mentioned topic.

scholarly journals Pengaruh Manajemen Laba Akrual dengan Pendekatan Revenue Discretionary Model terhadap Kinerja Perusahaan

TRIKONOMIKA ◽  
2014 ◽  
Vol 13 (1) ◽  
pp. 108
Author(s):  
Sepriahangga Wahyu Windharta ◽  
Nurmala Ahmar
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Financial Statements ◽  
Research Approach ◽  
Tobin’S Q ◽  
Manufacturing Companies ◽  
Tobin's Q ◽  
Revenue Model ◽  
Revenue Models

Accrual earnings management is a form of manipulation of financial statements on the accrual components to increase its profit in order to look good in the investors perception. This research approach discretionary  revenue published by Stubben in 2010 with two different formulas are conditional revenue models and revenue models to measure the accrual earnings management to be proxies to the performance of the company. The purpose of this study was to analyze the effect of accrual earnings management by discretionary revenue approach on firm performance in manufacturing companies listed on the Stock Exchange. The Results of analysis for this study were 1) Accrual earnings management is measured using a Revenue Model does not affect the Return On Asset. 2) Accrual earnings management is measured using a Revenue Model does not affect the Tobin’s q. 3) Accrual earnings management is measured using a Conditional Revenue Models effect on the Return On Asset. 4) Accrual earnings management is measured using a Conditional Revenue Models has no effect on Tobin’s q.

scholarly journals Determinants of Accounting and Market-based Performance Measures – Case of Croatian Non-financial Listed Companies

2021 ◽  
Vol 92 ◽  
pp. 02049
Author(s):  
Tomislava Pavic Kramaric ◽  
Marko Miletic ◽  
Damir Piplica
Keyword(s):  
Performance Measures ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Value Added ◽  
Listed Companies ◽  
Performance Measure ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Measure Of Performance

Research background: Profitability and the factors that determine it have always intrigued the scholars. Despite the large number of studies dealing with this topic at the international level, this paper sheds a new light on the issue since it deals with the listed companies in an emerging economy confronting two performance measures. Purpose of the article: The aim of this paper is to provide evidence on the performance of Croatian non-financial firms listed on the Zagreb Stock Exchange (ZSE). Methods: The analysis encompassed firms that operated in the 2015 – 2019 period. For this purpose, the authors confronted two performance measures, i.e. accounting-based performance measure represented with return on assets (ROA) whereas Tobin’s Q stands for the market-based measure of performance or firm value. Independent variables that served as potential determinants of listed companies’ performance include inventories management, productivity, liquidity measured with both current and quick ratio, and size calculated on the basis of total assets, and sales. Findings & Value added: After employing static panel analysis, the results reveal statistically significant influence of size variable based on assets in both models though it takes negative sign in the model where performance is measured with Tobin’s Q, whereas its positive impact on performance is recorded in ROA model. Furthermore, size based on total sales also positively affects performance when measured with ROA.

scholarly journals Determinants of Capital Structure and Their Effect to Company’s Value: Study in LQ 45 Companies Listed in Indonesia Stock Exchange

2020 ◽  
Vol 9 (3) ◽  
pp. 156
Author(s):  
Andi Kartika ◽  
Sunarto Sunarto ◽  
Faisal Riza Rahman ◽  
Zaky Machmuddah
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Least Square ◽  
Future Research ◽  
Tobin’S Q ◽  
Analysis Method ◽  
Tobin's Q ◽  
Dependent Variables ◽  
The Relationship

The aim of the research is to analyse the effect of  profitability, liquidity, and company’s size to company’s value and examines whetherDERis a mediating variable. Secondary data is taken from annual report of the companies. Analysis method used is multiple regression analysis (least square).  The finding of the research showed thatDER mediated  the relationship between CR  andTobin’s Q. However DER is not a mediating variable for the relationship betweenRNOAand TOBINas well as between SIZE  and Tobin’s Q. Mediating test is conducted by Sobel Test. The other finding is that RNOA positively affects to DER. CR negatively affects to DER. SIZE positively affects to DER and then DER negatively affects to Tobin’s Q. Recommendation for future research is to widen the samples, not just  42 companies, to add observed periods to give clearer description in long term.The next research can also use other dependent variables affecting capital structure and company’s value.

scholarly journals Karakteristik CEO Dan Kinerja Perusahaan Non-Keuangan Yang Teraftar Di Bursa Efek Indonesia

2018 ◽  
Vol 5 (3) ◽  
pp. 299-314
Author(s):  
I Made Sudana ◽  
Elka Dwiputri
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Purposive Sampling ◽  
Ceo Tenure ◽  
Analysis Technique ◽  
Financial Firm ◽  
Ceo Characteristics

The purpose from this research is to test the effect from CEO characteristics towards firm performance. CEO characteristics was proxied with founder CEO, ownership, tenure, and education. Firm performance was proxied with Tobin’s Q. The sample from this research are every non-financial firm that have been listed in Indonesian Stock Exchange from 2010 – 2015 period. The method from this research is purposive sampling with analysis technique model multiple linier regression. The result from this research showed that founder CEO, CEO ownership, CEO tenure have a positive significant effect towards firm’s performance or Tobin’s Q.   Keywords : CEO Characteristics,  Firm Performance

scholarly journals THE INFLUENCE OF DIVIDEND POLICY, DEBT POLICY, INDEPENDENT COMMISSIONER, AND INSTITUTIONAL OWNERSHIP ON THE FIRM VALUE WITH GROWTH OPPORTUNITIES AS MODERATOR VARIABLES (Study on Non-Financial Companies Listed on IDX in the Period of Years of 2012-2015)

2018 ◽  
Vol 26 (2) ◽  
pp. 146 ◽  
Author(s):  
Lia Setiyawati ◽  
Sugeng Wahyudi ◽  
Wisnu Mawardi
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Control Variable ◽  
Market Value ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Good Growth ◽  
Tobin’S Q ◽  
Manufacturing Companies ◽  
Tobin's Q

Tobin's q is the ratio of market value of equity plus the market value of debt to total assets. This ratio measures the value provided by financial markets for any management and organization as a growing company. Tobin's q also shows how far a company is able to create its value relative to the amount of capital invested. The greater the value of Tobin's q indicates that the company has good growth prospect. This study aimed at examining the influence of Dividend Payout Ratio (DER), Independent Commissioner (KI) and Institutional Ownership (INST) on Tobin's q with Size and Return on Investment (ROI) as control variable and Market to Book Value (MBV) as a moderating variable.The population in this study is all manufacturing companies listed on Indonesia Stock Exchange in the period of 2012-2015. The sampling technique used purposive sampling and obtained 28 companies becoming the research sample. The analysis technique used in this research was multiple regression analysis using SPSS where the data, previously, had been tested using classical assumption tests like normality, multicollinearity, and autocorrelation tests.

scholarly journals Tobin’s q, RoA, Diversification and Risk

2015 ◽  
Vol 50 ◽  
pp. 146-154
Author(s):  
Banafsheh Farhangzadeh
Keyword(s):  
Firm Performance ◽  
Stock Returns ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
P Value ◽  
Tobin’S Q ◽  
Diversification Strategy ◽  
Tobin's Q ◽  
Significance Level ◽  
Percent Confidence Level

This study aims to explain the link between corporate diversification, firm performance and risk. To test the research hypotheses, a sample of 63 companies listed in Tehran Stock Exchange over the period 2008-2012 was taken. We construct two models with Tobin’s q, RoA, Size, Debt, Growth and Standard deviation of stock returns. Analysis of the research models is based on panel(data) analysis. In these models the presence or absence of effects models (fixed or random) is reviewed and finally the best model is estimated. Inference is based on significant level or p-value, thus likely that any value or significance level of the test is less than 0.05 is rejected at the 95 percent confidence level. The results indicate that there is no significant relationship between diversification strategy, firm performance and risk.

scholarly journals A reassessment of the relationship between working capital management and firm performance: evidence from non-financial companies in Nigeria

2018 ◽  
Vol 15 (3) ◽  
pp. 249-266
Author(s):  
Sunday Simon ◽  
Norfaiezah Sawandi ◽  
Mohamad Ali Abdul-Hamid
Keyword(s):  
Firm Performance ◽  
Inventory Management ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Accounts Payable ◽  
The Relationship

This paper reassesses the relationship between working capital management (WCM) and firm performance in the Nigerian context. The study is motivated by the limited insights available on the impacts of WCM on firm performance in the country. To date, most studies from Nigeria have been largely descriptive and focused on a small sample size that is non-representative of the population. In addition, there are limited rigorous statistical analyses involved in such studies. This paper addresses the methodological limitations apparent in prior literature and provides a better understanding of the relationship between WCM and firm performance, revealing how firms can manage their operations more profitably. The paper adopts a panel data regression analysis on a sample of 75 non-financial firms listed on the Nigerian Stock Exchange from 2007 to 2015. The results of the analyses showed that WCM variables have an inconsistent relationship with the measures of performance adopted, which were return on assets and Tobin’s Q. Specifically, accounts receivable management and inventory management were negatively associated with the return on assets, while accounts payable management, cash conversion cycle and cash conversion efficiency were positively associated with return on assets. Additionally, accounts receivable management and inventory management were positively associated with Tobin’s Q, whereas accounts payable management, cash conversion cycle and cash conversion efficiency were negatively associated with Tobin’s Q. These results were found to be robust using quantile regression. The results of the quantile regression showed inconsistency across the various quantiles used (0.10, 0.25, 0.50 and 0.75). These findings have two important implications. The first is that WCM variables influence the performance of firms. The second is that the mixed findings partly indicate that firms and managers must understand and formulate WCM policies that reflect their peculiar conditions.

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