scholarly journals The Effect of Risk and Stock Returns on the Quality of Profits of Industries Listed on the Tehran Stock Exchange

2022 ◽  
Vol 8 (1) ◽  
pp. 132-151
Author(s):  
Najafi Afrooz ◽  
Najafi Manuchehr
Keyword(s):  
Stock Returns ◽  
Stock Exchange

scholarly journals PENGARUH PRAKTIK AKUNTANSI DENGAN PRINSIP KEHATI-HATIAN (PRUDENTIAL PRINCIPLE) TERHADAP KUALITAS LABA DAN TINGKAT PENGEMBALIAN SAHAM (STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI)

2017 ◽  
Vol 13 (2) ◽  
Author(s):  
Ana Septiani
Keyword(s):  
Research And Development ◽  
Stock Returns ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Observation Data ◽  
Manufacturing Company

Abstract  The financial statements provide information that contains performance and financial position of a company. The financial statements conform to the principles of accounting in accordance with generally accepted standards to be useful to users in decision making of economic. The financial statements that are useful are the financial statements of good quality and can be an indicator for future earnings in order to maximize the stock return and optimize the benefits for all stakeholders.This research is quantitative. The purpose of this study was to obtain empirical evidence about the effect of accounting practices with the prudential principle on the quality of earnings and stock returns. Variable measurement using indicators that are adapted to journal the adoption of this research that Penman and Zhang (2002), among others subscore consisting of inventory reserve, research and development reserves and advertising reserves, used to measure the accounting practices with the prudential principle, Qscore used to measure quality earnings and returns are used to measure stock returns. The population in this study are all companies listed on the Indonesia Stock Exchange period 2012 to 2014. The sample period is a manufacturing company that has made the convergence of IFRS. Total sample was 84 manufacturing company's financial statements every period of observation so that the total samples analyzed were as 252 manufacturing company financial statements for three periods of observation. Data analysis was performed with the classical assumption and hypothesis testing with multiple linear regression analysis. Statistical program in this study using SPSS 22. The results showed that subscore is the inventory reserves, research and development reserves and advertising reserves on accounting practices with the prudential principle to produce earnings quality is good, besides the results also showed that the stock market can "adapt" to new information one of which is the change in the quality of corporate profits caused by the research and development reserves on the accounting practices with the prudential principle in manufacturing.

The effect of reporting quality on stock returns of listed companies on the Tehran Stock Exchange

2018 ◽  
Vol 67 (1) ◽  
pp. 4-19 ◽  
Author(s):  
Mahdi Salehi ◽  
Masomeh Tagribi ◽  
Shayan Farhangdoust
Keyword(s):  
Stock Returns ◽  
Financial Reporting ◽  
Unit Root ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Reporting Quality ◽  
Ordinary Least Squares ◽  
Institutional Setting ◽  
Content Type

Purpose The purpose of this paper is to examine the effect of earnings quality (as a proxy for financial reporting quality) of companies listed on the Tehran Stock Exchange (TSE) and the quality of their financial information disclosure on stock returns. Design/methodology/approach The authors test the hypotheses by conducting panel data analysis on a sample of 1,680 firm-year observations from companies listed on the TSE during 2009-2014. The authors also conduct the variance inflation factor and unit root tests to control for the severity of multicollinearity in their ordinary least squares regression analysis and whether the time series variables are non-stationary and possess a unit root. Findings Using Francis et al. (2005) and modified Jones (1991) models as measures for earnings quality, the results are indicative of a significant and positive relationship between firms’ earnings quality and their stock returns. However, the research findings suggest that earnings management as well as disclosure quality (DQ) is not significantly associated with firms’ stock return. Research limitations/implications Although the authors controlled for some of the factors affecting stock returns, there are still some other factors such as the operating environment, institutional setting and/or information uncertainty that could influence stock returns, and accordingly, the authors were not able to exclude their possibility and get the most robust results. Moreover, there are several models proposed in different studies for measuring earnings quality which have led to mixed results particularly without a general consensus on what a good model is, and whether earnings quality is a priced risk factor. Originality/value Taken as a whole, the paper could provide new insights into the determinants of stock returns which has rarely been considered by prior finance literature. Furthermore, the unique institutional context of the paper could contribute substantially to the literature on the relationship between financial reporting and DQ and stock returns.

scholarly journals Relationship between Board Structure and Volatility of Stock Returns of Selected Companies Listed on BSE

YMER Digital ◽  
2021 ◽  
Vol 20 (12) ◽  
pp. 205-214
Author(s):  
Fatemeh Mohammadhosseini ◽  
◽  
Dr. H Rajashekar ◽  
Keyword(s):  
Stock Returns ◽  
Regression Models ◽  
Stock Exchange ◽  
Board Structure ◽  
Iron And Steel ◽  
Company Value ◽  
Good Corporate Governance ◽  
Multiple Regression Models ◽  
The Relationship

Good corporate governance enhances the quality of listed companies. It forms a scientific constraint and necessary incentive mechanism that motivates managers to take risks, leading to increased company value. The study considered cement, iron, and steel companies listed on the Bombay Stock Exchange (BSE) to assess the relationship between board structure and volatility of stock returns. The study's main objective was to analyze the relationship between board structure and volatility of stock returns. The relationship between board structure and volatility of stock returns was tested using SPSS through descriptive statistics, f-test, and multiple regression models. It was found that board structure possessed a positive relationship with the volatility of stock returns during the study period.

scholarly journals Evaluating the effect of accruals quality, investments anomaly and quality of risk on risk premium (return) of stock of listed companies in Tehran Stock Exchange

2016 ◽  
Vol 14 (3) ◽  
pp. 296-306
Author(s):  
Seyed Kazem Ebrahimi ◽  
Ali Bahrami Nasab ◽  
Mehdi Karim
Keyword(s):  
Stock Returns ◽  
Risk Premium ◽  
Stock Return ◽  
Stock Exchange ◽  
Listed Companies ◽  
Size Factor ◽  
Affecting Factors ◽  
People Participation ◽  
Accruals Quality

Nowadays, reaching to economic goals in any society requires public participation, which is only the result of people participation. Investment in stock market is one of people participation methods. So, awareness from stock return and its affecting factors is one of anxieties of investors and owners of shares. In this research, authors evaluate the effective factors on stock return using Fama and French models. So, authors study the effect of some factors including accruals quality, anomalies of investments, size factor, market’s risk premium factor, and book equity to market equity factor, on stock’s risk premium which is representative of stock returns, in 70 listed companies in Tehran stock exchange from 20 March 2003 to 20 March 2014. Results showed that accruals quality and quality of risk have meaningful effect on risk premium, which is representative of stock returns. Results also show that investment anomaly has no meaningful effect on risk premium and, consequently, on stock returns. Keywords: accruals quality, investments anomaly, risk premium, return diversity, stock returns, quality of earnings, discretionary accruals, systematic risk. JEL Classification: M41, G12, G14

The Effect of Bankruptcy Possibility on Audit Delay and Timeliness (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

2019 ◽  
Vol 2 (2) ◽  
pp. 118-146
Author(s):  
Triana Meinarsih ◽  
Abdul Yusuf ◽  
Muhammad Zilal Hamzah
Keyword(s):  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Z Score ◽  
Quality Of Accounting Information ◽  
Independent Variable ◽  
A Company

Audit delay and timeliness are important factors that influence the quality of accounting information in term of relevance. This study provides empirical evidence to answer the question of how bankruptcy possibility impacts on audit delay and timeliness.  This research studies manufacturing firms listed in Indonesian Stock Exchange (IDX) in the period of 2012-2016. Data are taken from official website of IDX. This study is a quantitative research that seek to find out relationship between independent variable and dependent variable. External secondary data used are annual reports accessed from IDX website. Measurement used is Z-Score Altman model prediction, while simple linear regression is employed as technical analysis. This study finds that bankruptcy possibility which is measured by ZScore is negatively influence audit delay and timeliness. Any decrease of Z-Score shows the possibility of a company experience bankruptcy and therefore causes audit delay and timeliness.

scholarly journals PENGARUH KURS, GROSS DOMESTIC PRODUCT DAN SOLVABILITAS TERHADAP RETURN SAHAM INVESTOR PADA PERUSAHAAN PERTAMBANGAN

2019 ◽  
Vol 8 (10) ◽  
pp. 6262
Author(s):  
Martina Carissa Dewi ◽  
Luh Gede Sri Artini
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Exchange Rates ◽  
Stock Returns ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Domestic Product ◽  
Mining Company ◽  
Macroeconomic Factors ◽  
Regression Test

The level of return obtained by investors is influenced by microeconomic and macroeconomic factors. This study aims to obtain empirical evidence regarding the effect of exchange rates, Gross Domestic Product and solvency on stock returns. This research was conducted at the mining company in the coal sub-sector on the Indonesia Stock Exchange. All the coal mining sub-sector companies listed on the Stock Exchange for the period 2014-2017 used as the population. The method of determining the sample used is using a saturated sampling technique. Multiple linear regression test used as the data analysis on this research. Based on the results of the analysis of this study it was found that the exchange rate and GDP had a negative and significant effect on stock returns. The solvency proxied by DER has a positive and significant effect on stock returns. Keywords: Exchange Rate, Gross Domestic Product, Solvability and Return.

scholarly journals Information-Theoretic Measures and Modeling Stock Market Volatility: A Comparative Approach

Risks ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 89
Author(s):  
Muhammad Sheraz ◽  
Imran Nasir
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Stock Exchange ◽  
Approximate Entropy ◽  
Market Volatility ◽  
Comparative Approach ◽  
Stock Market Volatility ◽  
Information Theoretic ◽  
Information Theoretic Measures ◽  
Garch Modeling

The volatility analysis of stock returns data is paramount in financial studies. We investigate the dynamics of volatility and randomness of the Pakistan Stock Exchange (PSX-100) and obtain insights into the behavior of investors during and before the coronavirus disease (COVID-19 pandemic). The paper aims to present the volatility estimations and quantification of the randomness of PSX-100. The methodology includes two approaches: (i) the implementation of EGARCH, GJR-GARCH, and TGARCH models to estimate the volatilities; and (ii) analysis of randomness in volatilities series, return series, and PSX-100 closing prices for pre-pandemic and pandemic period by using Shannon’s, Tsallis, approximate and sample entropies. Volatility modeling suggests the existence of the leverage effect in both the underlying periods of study. The results obtained using GARCH modeling reveal that the stock market volatility has increased during the pandemic period. However, information-theoretic results based on Shannon and Tsallis entropies do not suggest notable variation in the estimated volatilities series and closing prices. We have examined regularity and randomness based on the approximate entropy and sample entropy. We have noticed both entropies are extremely sensitive to choices of the parameters.

scholarly journals Impact of Demerger on Shareholders’ Wealth

2009 ◽  
Vol 1 (1) ◽  
Author(s):  
Ranjit SINGH ◽  
Amalesh BHOWAL ◽  
Varun BAWARI
Keyword(s):  
Value Creation ◽  
Stock Exchange ◽  
Specific Character ◽  
Average Price ◽  
Share Prices ◽  
The Subject ◽  
Time Specific ◽  
Almost All ◽  
Total Wealth

Purpose – The purpose of this paper is to investigate the change in the level of the wealth of the shareholders’ before the demerger and after the demerger.Design/methodology/approach – In the present study the data relating to share prices has been taken from the official website of Bombay Stock Exchange. Here the average of the six months price of the demerged company before demerger and average six months price or the average price upto 31st of July, 2007 has been collected of demerged and resultant company after demerger. Findings – It is found that after demerger there is increase in the total wealth of the shareholders in almost all the cases.Research limitations/implications – Given the nature of this study, generalizations cannot be made as the study is conducted in a bullish market. The time specific character of the subject matter is an opportunity for future longitudinal research.Practical implications – Presently de-mergers are creating enormous wealth for shareholders. It is because of the negative synergy. Due to the demerger this negative synergy is removed and the value is unlocked. However, Investors should differentiate between genuine attempts at value creation and de-mergers undertaken to create hype around the stocks. Stay away from dubious companies that want to manipulate prices. Investors should focus on the quality of management and corporate governance record of the companyOriginality/value – The study is the first of its kind and hence original in nature.Article Type: Research paperKeyword(s): Demerger, Demerged Company, Resultant Company, Negative Synergy, Shareholders Wealth.

scholarly journals Firm characteristics and excellence in integrated reporting

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Natasha Buitendag ◽  
Gail S. Fortuin ◽  
Amber De Laan
Keyword(s):  
Repeated Measures ◽  
Mixed Model ◽  
Stock Exchange ◽  
Categorical Variables ◽  
Firm Characteristics ◽  
Integrated Reporting ◽  
Johannesburg Stock Exchange ◽  
Annual Survey ◽  
The Board Of Directors

Background: Integrated reporting has attracted much attention in the past few years, and South Africa has taken the lead in its development worldwide. An annual survey is published by Ernst & Young regarding the quality of the integrated reports of the top 100 entities listed on the Johannesburg Stock Exchange (JSE).Aim: The study on which this article is based was aimed at determining whether the assessment of an entity’s characteristics can predetermine the quality of the integrated report generated by that entity. Setting: This article focuses on an analysis of the integrated reporting of the top 100 entities listed on JSE for the financial years ending in 2013, 2014 and 2015.Methods: Comparison of categorical variables, mixed-model repeated measures ANOVA and generalised estimating equations were applied to identify the best classificators to distinguish between excellent integrated reporting and those reports where progress could still be made. Results: The results show that the type of industry the entity finds itself in, the size and profitability of the entity, as well as the composition of the members of the board, have an effect on the quality of the integrated report.Conclusion: Our results indicated that the type of industry, size of an entity, the profitability and composition of the board of directors, all have an effect on the quality of the integrated reporting. Our evidence will assist current and prospective stakeholders in evaluating the expected quality of an entity’s integrated report, through the evaluation of certain firm characteristics.

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