scholarly journals Effect of Corporate Governance and Financial Leverage on Market value Added in Pakistan

2016 ◽  
Vol 2 (1) ◽  
pp. 17-26
Author(s):  
Muhammad Sadiq Shahid ◽  
Maria Shams Khakwani ◽  
Ali Hamza
Keyword(s):  
Corporate Governance ◽  
Negative Impact ◽  
Value Added ◽  
Market Value ◽  
Financial Leverage ◽  
Proxy Variable ◽  
Coverage Ratio ◽  
Independent Variable ◽  
Market Value Added ◽  
The Impact

This paper examines the impact of corporate governance rules and regulations and financial leverage on the market value added in Pakistan. Market value added (MVA) is our dependent variable and corporate governance and financial leverage are our independent variables and examine their combined effect on the market value added. This study will help the Pakistani firms who are going to lever their firms and going to practicing the corporate governance rules and regulations. For this purpose we have taken the listed non-financial companies of Pakistan from 2006-2015 because they are actively practicing the corporate governance rules and regulations. The results indicate that the proxy variable of corporate governance which is board size also have the significant and negative impact on the MVA in Pakistan. Interest coverage ratio indicates that if the firm's ability to pay its interest expenses increases as results MVA also increases. Debt ratio is the proxy variable of financial leverage which is our next independent variable. By the help of our regression model we concluded that Debt also have the positive significant effect on the market value added on the firms in Pakistan. It means if a firm wants to increase their market value they should go for the debt instead of equity. Debt will help firms in Pakistan to increase their market value.

scholarly journals ANALISIS PENGARUH ECONOMIC VALUE ADDED TERHADAP MARKET VALUE ADDED PADA 20 EMITEN TERAKTIF DI BURSA EFEK JAKARTA PERIODE 2001 2005

2019 ◽  
Vol 2 (2) ◽  
pp. 97
Author(s):  
Wibowo Wibowo ◽  
Koes A Windyarti
Keyword(s):  
Stock Exchange ◽  
Economic Value ◽  
Operating Cost ◽  
Value Added ◽  
Secondary Data ◽  
Market Value ◽  
Economic Value Added ◽  
Independent Variable ◽  
Market Value Added ◽  
The Impact

<p><em><br /> Generally, the purposes of company are for increasing the profit and creating shareholders wealth. Economic Value Added is a system which suitable to measure economic profitability of the company, that state the wealthy only can create if the company can fulfill all of the operating cost and cost of capital. The objectives of composing this thesis to get the empirical illustration about Economic Value Added (EVA), Market Value Added (MVA), and to know the impact Economic Value Added toward Market Value Added on 20 companies listed in Jakarta Stock Exchange (JSX) which perform the most active stock period 2001 until 2005. These data researches get from secondary data with purposive random sampling method, such as Jakarta Stock Exchange (JSX) Statistics and Indonesian Capital Market Directory (ICMD). In this thesis, the research design used is correlation descriptive method which EVA treated as independent variable and MVA as dependent variable. The conclusion is that EVA has increased every year as MVA during 2001-2003, but in 2004- 2005 the MVA has decreased, and moreover. EVA was positively influencing MVA but least significant on 20 companies that have most active stock listed in Jakarta Stock Exchange (JSX).</em></p>

The Impact of Leverages and Operating Efficiency on Market Value Added: Empirical Evidence from India

2021 ◽  
pp. 097226292199215
Author(s):  
Rahul Kumar ◽  
Prince Bhatia ◽  
Subir Chattopadhyay
Keyword(s):  
Value Added ◽  
Market Value ◽  
Operating Efficiency ◽  
Financial Leverage ◽  
Listed Firms ◽  
Turnover Ratio ◽  
Asset Turnover ◽  
Market Value Added ◽  
Operating Leverage ◽  
The Impact

This article examines the relationship between the market value added and degree financial leverage, degree of operating leverage, and asset turnover ratio of the listed firms in India. The period of study was from 2013 to 2019, and data were collected in annual frequency. Our study concludes that the degree of financial leverage and asset turnover ratio are significantly and negatively associated with the market value added of listed firms in India. We also reported an insignificant relationship between market value added and degree of operating leverage. Our results indicate that promoters holding and firm size are important factors driving the performance of the firms listed in India.

The Value Of The State-Owned Enterprises In Indonesia: A Case Study Of Privatization

2011 ◽  
Vol 8 (7) ◽  
Author(s):  
Sri Hasnawati
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
The State ◽  
State Budget ◽  
Market Value Added ◽  
The Impact

This research aims to test the impact of the ownership structure toward the performance of the State-Owned Enterprises (SOEs). It examines the relationship between the performance of the SOEs and the market value. The study involves 13 SOEs listed at the Jakarta Stock Exchange. Of the 13 SOEs, 9 were selected as samples. The performance of the SOEs is measured by means of the EVA (Economic Value Added) indicator and the market value by the MVA (Market Value Added) indicator. The result of the study reveals that the ownership structure does not have an impact on the performance of the SOEs, either partially or simultaneously. To a smaller degree, the study also indicates that there is a relationship between the EVA and the MVA. The implication of this study is that the privatization of the SOEs should not fully be used to help with the state budget deficit. That is, the majority of the funds should be allocated for the purpose of developing or expanding the SOEs themselves so that they can perform optimally for the sake of society. Furthermore, the SOEs should be well-managed if they would like to obtain good responses from the market.

The impact of corporate governance on intellectual capitals efficiency in Iran

2020 ◽  
Vol 13 (4) ◽  
pp. 749-766 ◽  
Author(s):  
Mahmoud Lari Dashtbayaz ◽  
Mahdi Salehi ◽  
Alieyh Mirzaei ◽  
Hamideh Nazaridavaji
Keyword(s):  
Corporate Governance ◽  
Human Capital ◽  
Audit Committee ◽  
Negative Impact ◽  
Stock Exchange ◽  
Value Added ◽  
Content Type ◽  
Financial Expertise ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to evaluate the impact of corporate governance on intellectual capital (IC) in companies listed on the Tehran stock exchange. Design/methodology/approach In this paper, the board features (size, independence and CEO duality) and the characteristics of the audit committee (financial expertise, independence and size) are considered to measure the factors of corporate governance. The IC is also divided into communicative, human, structural and value-added IC. Research data are gathered using a sample of 132 companies during 2013-2016. Research hypotheses are analyzed using panel data and logistic regression models. Findings The findings indicate that while the board’s independence, financial expertise and the size of the audit committee are negatively related to the communicative capital, the relationship between audit committee independence and communicative capital is positive and significant. Further, the authors observe that there is a positive relationship between board independence and human capital, a negative and significant link between audit committee size and human capital. By the way, the results reveal that audit committee independence and audit committee size have, respectively positive and negative impact on structural capital. Originality/value The results of the current study may give more insight into the relationship between corporate governance and managerial capital in developing nations.

scholarly journals Does Corporate Governance Affect the Financial Performance? Analysis of Findings from Jordanian Banks

2017 ◽  
Vol 12 (4) ◽  
pp. 123
Author(s):  
Basman Aldalayeen
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Secondary Data ◽  
Annual Reports ◽  
Research Papers ◽  
Statistical Tool ◽  
Proxy Variable ◽  
Islamic Bank ◽  
Independent Variable ◽  
The Impact

The present study explored the impact of corporate governance on the financial performance of selected Jordanian banks. The study is based on secondary data collected from Annual Reports of Companies, research papers, articles and various websites. The sample of the study consists of five banks of Jordan. Multiple regression has been used as the statistical tool to measure the impact of corporate governance on the financial performance of banks under study. Corporate governance score is taken as independent variable while ROA is used as dependent proxy variable of financial performance. The findings of the current research highlighted that corporate governance score has a positive significant impact on the financial performance of Capital Bank of Jordan, Arab Bank, and Bank Al-Etihad. However, significant impact does not found on the financial performance of Jordan Islamic Bank and Jordan Dubai Islamic Bank.

scholarly journals The Impact of Market Value Added to Shareholder Value: Evidence from Indonesia Firms

2020 ◽  
Vol 86 ◽  
pp. 01029
Author(s):  
Rio Dhani Laksana ◽  
Viviana Mayasari
Keyword(s):  
Stock Exchange ◽  
Shareholder Value ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Negative Effect ◽  
Market Value Added ◽  
Measure Of Performance ◽  
The Impact

Presently financial experts developed the new concept as a value-based measure of performance in the creation of shareholder value. Market value for shareholders are among the most important goals of firms and owners The purpose of this study is to obtain empirical evidence of Economic Value Added (EVA) affects shareholder value by the method of Market Value Added (MVA) The research using non-financial companies listed on the Stock Exchange from 2013-2017. The result is support that the Economic Value Added (EVA) positive effect on shareholder value or in other words, the higher EVA is the higher shareholder value. The larger the company greater shareholder value and Leverage negative effect on shareholder value as measured using the method of MVA.

scholarly journals PENGARUH KINERJA KEUАNGАN DАN GOOD CORPORATE GOVERNANCE TERHADAP HАRGА SАHАM YАNG DIMΟDERАSI ΟLEH INTERNET FINANCIAL REPORTING

2021 ◽  
Vol 2 (1) ◽  
pp. 11-25
Author(s):  
Herlina Putri Rianti ◽  
Аjeng Wijаyаnti
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
Economic Value Added ◽  
Purposive Sampling ◽  
Good Corporate Governance ◽  
Market Value Added

Populasi dalam penelitian ini adalah perusahaan manufaktur sektor industri barang konsumsi yang terdaftar di Bursa Efek Indonesia (BEI) tahun 2014 – 2019. Teknik pengambilan sampel dilakukan dengan menggunakan teknik purposive sampling. Penelitian ini akan menggunakan software STATA dalam menganalisis data penelitian. Hasil pengujian menunjukkan economic value added tidak berpengaruh terhadap harga saham, market value added berpengaruh terhadap harga saham, dewan komisaris tidak berpengaruh terhadap harga saham, kepemilikan institusional tidak berpengaruh terhadap harga saham, internet financial reporting tidak berpengaruh terhadap harga saham, internet financial reporting memoderasi economic value added terhadap harga saham, internet financial reporting memoderasi market value added terhadap harga saham, internet financial reporting tidak memoderasi dewan komisaris terhadap harga saham dan internet financial reporting tidak memoderasi kepemilikan institusional terhadap harga saham. Kata kunci : Kinerja Keuangan, Economic Value Added, Market Value Added, Good Corporate Governance, Dewan Komisaris, Kepemilikan Institusional, Harga Saham, Internet Financial Reporting.  

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