The value relevance of non-financial performance indicators: new cues from the European fashion industry

2011 ◽  
pp. 81-102
Author(s):  
Francesco Dainelli ◽  
Francesco Giunta
Keyword(s):  
Performance Indicators ◽  
Stock Prices ◽  
Value Relevance ◽  
Related Result ◽  
Analysis Procedure ◽  
Research Trend ◽  
Financial Indicators ◽  
Fashion Industry ◽  
Standardization Process ◽  
Result Analysis

Intangible assets and related performance measures assume increasing importance in valuation processes. Value relevance studies testify to their importance through an analysis of market stock prices. We aim to examine the value relevance of non-financial indicators in European fashion companies. The indicator selected is the "change in mono-brand stores". Applying the models proposed by current literature, we have refuted the value relevance hypothesis. However, refining both the "operationalization" of the concepts and the related result analysis procedure, the value relevance is confirmed. In this way, we contribute to increasing the generalizability of this research trend and to fuel the debate concerning the standardization process of this information. In particular, following in the footsteps of the Gartner/EBRC project, supported by AICPA (Gartner-EBRC, 2010), our results can help the national and international standard setters to pinpoint the indicators that really matter for the fashion industry and standardize their communication.

scholarly journals The Effect of Disclosure and Transparency Criteria In Saudi Banks on The Financial Ratios Indicators

2019 ◽  
Vol 25 (116) ◽  
pp. 290-303
Author(s):  
Mohammad Kamal Kamel Afaneh
Keyword(s):  
Performance Indicators ◽  
Banking Sector ◽  
Saudi Arabian ◽  
Financial Statements ◽  
Monetary Authority ◽  
Financial Indicators ◽  
Return On Assets ◽  
Time Period ◽  
Before And After ◽  
The Impact

The study aimed to measure the effect of applying the disclosure and transparency standards criteria adopted by the Saudi Arabian Monetary Authority on improving performance indicators in the Saudi banking sector, by measuring the extent of the impact of the bank's financial indicators represented by liquidity, profitability and return on assets in Saudi banks by applying the criteria of disclosure and transparency, which is one of the Main principles in the list of governance, which was approved by the Saudi Arabian Monetary Authority. The analytical approach was followed to achieve the goal of the study, as the financial statements of Saudi banks were analyzed during a period of 8-year to test four hypotheses related to measuring the presence of statistically significant differences between the performance indicators of banks before and after applying the disclosure and transparency standards imposed on Saudi banks. The results of the research confirmed the existence of an inverse relationship between the bank’s liquidity and the percentage of Saudi banks ’profits. The more liquidity, the lower the profitability level of banks, which indicates that the high liquidity in Saudi banks has led to a low profitability in this time period, and the study recommended that The need to pay attention to the concept of disclosure and transparency among all related parties in Saudi banks, and banks should find a balance between liquidity and profitability  

scholarly journals Is There Any Value in the Banks Brand?

2018 ◽  
Vol 13 (12) ◽  
pp. 261
Author(s):  
Emanuel Bagna
Keyword(s):  
Stock Prices ◽  
Banking Sector ◽  
Value Relevance ◽  
Brand Value ◽  
Generation Process ◽  
Business Combinations ◽  
Allocation Process ◽  
Independent Expert ◽  
Brand Values ◽  
A Company

Traditionally the literature show that public brand value estimates (such as the ones published by Interbrand, Brand Finance or Brand Z), in the context of industrial quoted companies, are incorporated in stock prices, implying that brands significantly contributes to the value generation process in a company. No such study was carried out at the level of the banking sector. This could be due to the attribution of a marginal importance of brands, among other intangible assets, in the banking sector, as highlighted by the literature. In more recent years more and more evidences give evidence of the importance of brands in banking sector; it should be noted that: - many banks, as a result of the Purchase Price Allocation process - PPA (pursuant to IFRS 3 Business Combinations) consequent to banking aggregations (mergers or acquisitions), have booked in their financial statements (separate or consolidated) brand values; - reports published by independent parties such as Brand Finance, publishes brand values specifically for the banking sector. The aim of this article is therefore to assess if the brand contributes to the value generation process in the banking sector. To test our hypothesis we run a regression on a European sample between market capitalization of major banks and their brand value published by independent expert Brand Finance from 2008 to 2017, with a classic value relevance analysis. Our results demonstrate that brand contributes to the value generation process in the banking sector.

scholarly journals FORECASTING OF THE STOCK RATE OF LEADING WORLD COMPANIES USING ECONOMETRIC METHODS AND DCF ANALYSIS

2020 ◽  
pp. 33-41
Author(s):  
Olena Nikolaieva ◽  
Anzhela Petrova ◽  
Rostyslav Lutsenko
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Financial Analysis ◽  
Moving Average ◽  
Arima Model ◽  
Financial Indicators ◽  
Econometric Methods ◽  
Global Companies ◽  
The Moment ◽  
Data Analysis Methods

In this article, we will cover various models for forecasting the stock price of global companies, namely the DCF model, with well-reasoned financial analysis and the ARIMA model, an integrated model of autoregression − moving average, as an econometric mechanism for point and interval forecasting. The main goal is to compare the obtained forecasting results and evaluate their real accuracy. The article is based on forecasting stock prices of two companies: Coca-Cola HBC AG (CCHGY) and Nestle S.A. (NSRGF). At the moment, it is not determined which approach is better for predicting the stock price − the analysis of financial indicators or the use of econometric data analysis methods.

scholarly journals Value Relevance of Corporate Environmental Performance: A Comprehensive Analysis of Performance Indicators Using Korean Data

2020 ◽  
Vol 12 (17) ◽  
pp. 7209 ◽  
Author(s):  
Hyunwoo Choi ◽  
Ingoo Han ◽  
Jaywon Lee
Keyword(s):  
Performance Indicators ◽  
Environmental Performance ◽  
Firm Value ◽  
Performance Indicator ◽  
Value Relevance ◽  
Comprehensive Analysis ◽  
Corporate Environmental Performance ◽  
Main Research ◽  
Prior Literature ◽  
Environmental Performance Indicators

This paper examines the value relevance of corporate environmental performance (CEP) using individual environmental performance indicators and multidimensional constructs derived from Trumpp et al. (2015). Accounting information can be described as ‘value-relevant’ when the information in financial statements has the ability to explain firm value. In recent years, stakeholders such as governments, public institutions, firms, customers, and local communities have recognized the importance of corporate environmental performance. Thus, one of the main research questions is whether corporate environmental performance is value relevant. The empirical results in this paper indicate that only a few individual environmental performance indicator variables are value relevant, while most environmental performance constructs have a significant impact on firm value. Our findings suggest that firm value significantly increases with improved environmental management or operational performance. In addition, environmental performance indicators and environmental performance constructs have a significant impact on firms in environmentally sensitive industries, confirming the notion of higher value relevance of environmental information for firms in these industries. This study contributes to prior literature by carrying out a comprehensive analysis on the multidimensional nature of corporate environmental performance and its impact on value relevance. This paper also reconciles extant literature on the construct validity of environmental performance indicators and environmental performance constructs by formulating standardized composite measures of CEP following Larker et al. (2007).

Corporate impact of carbon disclosures: a nonlinear empirical approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Mora Rodríguez ◽  
Francisco Flores Muñoz ◽  
Diego Valentinetti
Keyword(s):  
Insider Trading ◽  
Stock Prices ◽  
Performance Metrics ◽  
Value Relevance ◽  
Moving Average ◽  
Online Search ◽  
Estimation Model ◽  
Content Type ◽  
Corporate Reporting ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of recent developments in corporate reporting, specifically from the carbon disclosure project (CDP) environment, in the evolution of European post-crisis financial markets. Design/methodology/approach Theoretical and instrumental advancements from nonlinear dynamics have been applied to the analysis of market behaviour and the online presence or reputation of major European listed banks. Findings The application of a nonlinear statistical methodology (i.e. the autoregressive fractionally integrated moving average [ARFIMA] estimation model) demonstrates the presence of a long history of collected data, thus indicating a certain degree of predictability in the time series. Also, this study confirms the existence of structural breakpoints, specifically the impact of the CDP reporting in both stock prices and online search trends of the sampled companies for certain periods. Research limitations/implications This study introduces new methodological perspectives in corporate reporting studies, as the application of nonlinear techniques can be more effective in capturing corporate transparency issues. A limitation to overcome is to explore whether the impact of reporting is different due to the specific reporting behaviour each company adopts. Practical implications The “breakpoint” concept should enlighten the importance to firms of providing more information in specific moments, which can impact on both traditional (i.e. stock prices) and modern (i.e. online popularity) performance metrics. Additionally, it should be taken into account by stakeholders, when analysing the accountability of firms to improve their decision-making processes and policymakers, for monitoring and contrasting speculative and insider trading activities. Social implications Online search trends represent a new public attitude to how society “measures” the effectiveness of firms’ disclosure behaviours. Originality/value Combining ARFIMA with structural break techniques can be regarded as a relevant and complementary addition to classic “market reaction” or “value relevance” techniques.

scholarly journals RELEVANSI NILAI INFORMASI AKUNTANSI ALTERNATIF SERTA IMPLIKASINYA TERHADAP PROSES PENGAMBILAN KEPUTUSAN INVESTASI DENGAN MENGGUNAKAN SEQUENTIAL EXPLANATORY MIXED METHOD

2020 ◽  
Vol 3 (1) ◽  
pp. 87
Author(s):  
Mada Purwanto Wahyu Nugroho ◽  
Ahmad Syifaudin
Keyword(s):  
Mixed Method ◽  
Stock Prices ◽  
Stock Price ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Financial Statements ◽  
Sources Of Information ◽  
Sequential Explanatory Mixed Method ◽  
Sequential Explanatory

Distortion of information is one of the inherent accounting risks in financial statements. Financial statements are one of the fundamental sources of information that can be used in investment decision making in the Indonesia stock exchange. If investors use this information, then investors also have the same risk that is the distortion of information contained in financial statements. This research tries to test whether stock prices can be more explained through alternative accounting information or information contained in financial statements. This research was conducted using a sequential explanatory mixed method. Using data on companies listed in the Business 27 index, tested using path analysis through multiple regression models, the results of this research indicate that alternative accounting information has not been able to explain variations in stock price changes compared to accounting information contained in financial statements. Meanwhile, the results of the analysis using qualitative data indicate there is a match between the results of quantitative analysis and qualitative analysis. Keywords: Value Relevance; Alternative Accounting Information; Investment Decisions

scholarly journals Modeling of the System of Evaluation of Retail Enterprises on the Basis of KPI and Process Approach

2021 ◽  
Vol 4 (519) ◽  
pp. 66-72
Author(s):  
O. S. Podskrebko ◽  
◽  
N. O. Ivanchenko ◽  
V. V. Tkachenko ◽  
◽  
...  
Keyword(s):  
Environmental Conditions ◽  
Performance Indicators ◽  
Business Processes ◽  
Process Approach ◽  
Retail Trade ◽  
Financial Indicators ◽  
Key Factors ◽  
Modeling And Forecasting ◽  
Retail Enterprise

The article proposes a model for evaluating the activities of retail enterprise, which is based on five stages and allows determining ways to increase the efficiency of functioning, which will improve the adaptive properties of the economic object. The analysis of types of KPI is carried out, process and functional approaches are identified as the main ones for the direct development of key performance indicators, as well as the characteristics of the evaluation of effective marketing at enterprises, including those that function in the sphere of retail trade, are determined. The authors considered how modeling and forecasting of key financial indicators of an enterprise contribute to the creation of strategies for its development. The article notes that for the initial evaluation of a retail enterprise focused on long-term success, it is mandatory to conduct an audit aimed at assessing the efficiency of the economic object and defining how quickly the enterprise adapts to dynamic environmental conditions. The carried out analysis allowed to identify the key factors that contribute to an improvement of the enterprise’s operation. Also, on the example of the Isikawa diagram, the ratio of KPI, strategies and understanding of business processes was considered in order to set, control and analyze the achievement of goals.

scholarly journals Supply chain strategy in the luxury fashion industry: impacts on performance indicators

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bianca Bindi ◽  
Romeo Bandinelli ◽  
Virginia Fani ◽  
Margherita Emma Paola Pero
Keyword(s):  
Supply Chain ◽  
Performance Indicators ◽  
Distribution Channel ◽  
Product Line ◽  
Fashion Industry ◽  
Primary Case ◽  
Close Link ◽  
Content Type ◽  
Supply Chain Strategy

PurposeThe purpose of this paper was to investigate what types of supply chain strategies (SCS) are implemented within luxury fashion companies, according to the drivers that regulate competitiveness in this sector (brand positioning, distribution channel, type and line of product). Moreover, the objective was to define which key performance indicators (KPIs) should be measured according to the chosen strategy, and finally to evaluate the alignment of luxury fashion companies with the proposed indicators.Design/methodology/approachThe literature review was the first step performed. Thereafter, a case study was conducted and the sample, composed of six companies, was selected, a questionnaire was then developed to guide the interviews, after which the data were collected. From the data, a primary case analysis was conducted, from which cross-case patterns were also researched.FindingsFrom the results obtained, it was possible to state that companies involved in the case study adopted different SCS within the same company according to the drivers that regulate the sector competitiveness. As a result, the product line was shown to be the only driver that affected both the alignment between the expected and implemented SCS, respectively, and the alignment with the selected KPIs.Originality/valueThe paper provides valuable insights to companies that are trying to align SCS and KPIs. The close link between these aspects had not yet been explored previously. In particular, there were no indications about the KPIs that have to be measured for a specific SCS.

scholarly journals Relevance of earnings and book value: Evidence from listed pharmaceutical companies

2020 ◽  
Vol 18 (1) ◽  
pp. 196-206
Author(s):  
Mwila Mulenga ◽  
Meena Bhatia
Keyword(s):  
Decision Making ◽  
Stock Returns ◽  
Stock Prices ◽  
Value Relevance ◽  
Accounting Information ◽  
Least Square ◽  
Sufficient Evidence ◽  
Pharmaceutical Companies ◽  
Book Value ◽  
The Impact

For accounting information to be useful for decision making it is essential that it is relevant for decision-making and should have a significant relation with stock prices or stock returns. Value relevance research aims to explain the impact of accounting information on stock prices or stock returns. This study examines the value relevance of earnings and book values on listed Indian pharmaceutical companies’ stock prices by using the Ohlson price model. The study gathered a series of panel data from 2006 to 2015 from the Nifty Pharma index. Ordinary least square and panel regression estimation were done using EViews. The findings provide sufficient evidence of those earnings per share (EPS) and book value per share (BVPS) jointly and individually for the Nifty Pharma index sample played an essential role in influencing stock prices. However, there is an insignificant decline in the combined value relevance of EPS and BVPS. The findings reveal that the EPS and BVPS played an important role in influencing stock prices. However, explanatory powers of EPS and BVPS in all years are significantly lower than that of developed countries. Overall findings show mixed results on the considerable influence of firm size on the value relevance of accounting information. This study’s findings have implications for analysts, investors, and other market participants; they should use EPS and BVPS in the equity valuation of pharmaceutical companies for better allocation of resources in capital markets.

scholarly journals Laboratory Instruments’ Produced Scientific Data Standardization through the Use of Metadata

2021 ◽  
Vol 12 (3) ◽  
pp. 2146-2151
Author(s):  
Nur Adila Azram Et.al
Keyword(s):  
Data Structure ◽  
Related Result ◽  
Scientific Data ◽  
Data Standardization ◽  
Standard Structure ◽  
Result Analysis ◽  
Structure Extraction

The progression of scientific data from various laboratory instruments is increasing these days. As different laboratory instruments hold different structures and formats of data, it became a concern in the management and analysis of data because of the heterogeneity of data structure and format. This paper offered a metadata structure to standardize the laboratory instruments' -produced scientific data to attain a standard structure and format. This paper contains explanation regarding the methodology and the use of proposed metadata structure, before summarizing the implementation and its related result analysis. The proposed metadata structure extraction shows promising results based on conducted evaluation and validation.

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