Turnaround Model Prediction with Content Dimension on Financial Distress Firms

2020 ◽  
Vol 11 (1) ◽  
pp. 65-65
Author(s):  
Giriati
Keyword(s):  
Family Member ◽  
Model Prediction ◽  
Significant Relationship ◽  
Financial Distress ◽  
Stock Exchange ◽  
Organization Change ◽  
Least Square ◽  
Ordinary Least Square ◽  
Change Framework

This article aims to synthesize and test empirically turnaround model by content dimension that is an integration of the organization change framework into turnaround research to measure some activities done to avoid failure in turnaround. This study on the Indonesian Stock Exchange (BEI) by using Ordinary Least Square technique. The results of the analysis from content dimension show that the CEO expertise variable has a significant relationship to turnaround, since companies in Indonesia are dominated by family companies, so maintaining the incumbent CEO is more appropriate, because it is a family member. In addition, free assets show a significant relationship with turnaround, while leverage and growth of sales do not have a significant relationship with turnaround. Keywords: Financial Distress, Turnaround Model, CEO Expertise, Free Assets, Leverage and Growth of Sales,

scholarly journals EFFECT OF CREDIT RATING ON CAPITAL STRUCTURE: A STUDY ON NON-FINANCIAL FIRMS IN PAKISTAN

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Stock Exchange ◽  
Credit Ratings ◽  
Least Square ◽  
Statistical Tool ◽  
Ordinary Least Square ◽  
Optimal Capital Structure ◽  
Financial Firms ◽  
The Impact

Purpose- Aim of this study was to investigate whether the credit rating is an important determinant other than the firm's characteristic to obtain optimal capital structure focusing on the research hypothesis that the firms with higher credit along with the other factors (FTOA, ROA and Size) tend to have more debt in their capital structure of firms rated by P?CR? and Karachi Stock Exchange (KSE). Methodology/Sample- For this research, sample size of 48 observations (3 years data of 16 firms) was taken on the basis of convenience sampling. Results obtained by using Ordinary Least Square Model (OLS) as statistical tool to test the hypothesis Findings- Analysis clearly suggested that credit ratings do have an impact on firm's capital structure. It was concluded that firms with higher credit ratings along with other factors (FTOA, ROA and Size) do not tend to have more debt in their capital structure. Implications- Outcomes of this research might help investors, debtors and other stakeholders of the firms (rated by PACRA) to understand the impact of credit rating on firm's debt ratio and the overall dynamics and mechanism of capital structure.

IPO valuation using the price-multiple methods: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chui Zi Ong ◽  
Rasidah Mohd-Rashid ◽  
Kamarun Nisham Taufil-Mohd
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Least Square ◽  
Multiple Methods ◽  
Cross Sectional ◽  
Ols Regression ◽  
Content Type ◽  
Public Offerings ◽  
Ordinary Least Square ◽  
Valuation Method

Purpose This study aims to investigate the valuation accuracy of Malaysian initial public offerings (IPOs) by using price-multiple methods. Design/methodology/approach Cross-sectional data including 467 IPOs listed on the Malaysian stock exchange were used for the period of 2000–2017. This study used univariate ordinary least square (OLS) regression to analyse the relationship between IPOs’ price-multiples and comparable firms’ price-multiples. The test of valuation accuracy was conducted via computing valuation errors by segregating the sample into two groups: fixed-price IPOs and book-built IPOs. Furthermore, multiple OLS regression was used to examine the influence of IPO valuation on underpricing. Findings The findings of the results suggested that IPOs price-to-earnings (P/E), price-to-book (P/B) and price-to-sales (P/S) multiples were positively related to the median P/E, P/B and P/S multiples of five comparable firms matched by industry and revenues. The P/S multiple was shown to be the most significant valuation method, specifically in book-built IPOs. The findings indicated that those firms that had a lower valuation in comparison to the comparable firms were inclined to underprice their IPOs to allure investors to subscribe IPOs. In addition, book-built IPOs that had fair valuations were inclined to generate higher initial returns for investors. Practical implications The findings of this study observed implications for underwriters in avoiding the mis-valuation issue by considering the book-building mechanism. Originality/value This study attempted to explore the suitability of the valuation method to value IPOs in Malaysia.

Agricultural Investment Risk Relationship to National Domestic Production

2013 ◽  
Vol 2 (2) ◽  
pp. 80-98 ◽  
Author(s):  
Alex Ehimare Omankhanlen
Keyword(s):  
Significant Relationship ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Least Square ◽  
Investment Risk ◽  
Positive Finding ◽  
Domestic Production ◽  
Agricultural Investment ◽  
Ordinary Least Square ◽  
National Production

This empirical case study investigated the uncertainty of agricultural investment schemes in Nigeria and their relationship to national domestic production. Government administrations have invested a substantial amount of money into the agricultural sector, yet thus far, there have been very few visible results to show for it. The private sector does not seem to be interested in developing agriculture even with government incentives. The purpose of this study is to identify investment risk factors for national agriculture development as perceived by business stakeholders. Ordinary Least Square (OLS) was then used to examine the strength of the cause-effect relationship for the agricultural investment factors in terms of expected domestic production. The findings were that there was no significant relationship between commercial bank credit granting to businesses for agricultural development and therefore no impact on national domestic production. On the other hand, the regression analysis did support the hypotheses that there was a significant relationship between government funding towards the agricultural sector and national domestic production as well as a significant relationship between the public agriculture credit guarantee scheme and national domestic production, respectively. Based on this positive finding, the study closes with several unique recommendations for policy makers in order to stimulate the investment into the agricultural sector to increase national production.

The effects of board size and board composition on CSR disclosure: a study of banking sectors in Bangladesh

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Abdur Rouf ◽  
Md. Alamgir Hossan
Keyword(s):  
Significant Relationship ◽  
Annual Report ◽  
Stock Exchange ◽  
Least Square ◽  
Board Composition ◽  
Board Size ◽  
Content Type ◽  
Female Directors ◽  
The Government ◽  
Csr Disclosure

Purpose The purpose of this study is to provide a profound understanding of the nature and extent of corporate social responsibility (CSR) disclosure in the annual report by the listed banking sectors in Bangladesh for examining the effect of board size and board composition on CSR disclosure. Design/methodology/approach The sample selected of all the 30 listed banks enlisted in the Dhaka Stock Exchange and the study used a content analysis approach. An ordinary least square regression model is fitted to the data for assessing the effect of independent variables on the total CSR disclosure score. An un-weighted approach has been used for this study. Findings The results of the study demonstrate that the extent of CSR disclosure of listed banks in Bangladesh varies from 11.11% to 73.33%, and on average, they report 45.37% and 43.44%, respectively. Moreover, the study observed a significant relationship between the proportion of female directors and CSR disclosure. Conversely, board size has been found no significant relationship with the CSR disclosure but the proportion of independent directors has been found a significant relationship with the CSR disclosure in the annual report by the listed banking sectors in Bangladesh. Social implications The study is expected to get a maximum scenario of CSR disclosure of banking sectors in Bangladesh. Government and other regulatory bodies can also get full information concerning CSR disclosure practices for formulating guidelines in this regard. If the Government of Bangladesh implicates the policies that the banks are to nominate a required number of female directors to boards, the consideration of the significant number of female directors and their power will be able to protect the interests of different stakeholder groups notably. Originality/value The study contributes to the CSR literature as it presents empirical evidence of the effects of board size and board composition on the CSR disclosure of banking sectors in developing countries such as Bangladesh.

scholarly journals The Role of Political Connections on Family Firms’ Performance: Evidence from Indonesia

2019 ◽  
Vol 7 (4) ◽  
pp. 55 ◽  
Author(s):  
Iman Harymawan ◽  
Mohammad Nasih ◽  
Muhammad Madyan ◽  
Diarany Sucahyati
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Least Square ◽  
Political Connections ◽  
Family Ownership ◽  
Ols Regression ◽  
Ordinary Least Square ◽  
Relationship Of ◽  
The Relationship

The purpose of this study is to investigate the relationship of firms with family ownership and their performance in Indonesia and further examine on how political connections affect this relationship. This study used 933 samples from 413 companies listed on the Indonesia Stock Exchange (IDX) in the period between 2014 and 2016. Using ordinary least square (OLS) regression, the results shows that firms without family ownership (non-family firms) have better performance than firms with family ownership (family firms) in Indonesia. Furthermore, the findings also show that the performance of family firms significantly improve when the firms are affiliated with political connections. Our findings imply that establishing political connections in family firms will increase the performance of the firms.

scholarly journals Ownership Structure and Earnings Quality of Listed financial Firms in Nigeria

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Oladejo Abiodun Oyebamiji
Keyword(s):  
Ownership Structure ◽  
Significant Relationship ◽  
Positive Impact ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Random Effect ◽  
Institutional Ownership ◽  
Least Square ◽  
Financial Firms

The study determined the effect of ownership structure on earnings quality of listed financial firms in Nigeria. The study employed secondary data. The study population comprised all the 16 listed financial firms on the Nigerian Stock Exchange. Purposive sampling technique was adopted to select top 10 banks whose shares are consistently traded on the stock market. Data for ownership structure and earnings quality were sourced from the audited financial statements of the selected firms and the Nigerian Stock Exchange Factbook over a period of 10 years (2009-2018). Collected data were analyzed using pooled ordinary least square, fixed effect and random effect estimation techniques. The result from the study showed that institutional ownership (t=4.3, p˂0.05) had a positive and statistically significant relationship with earnings quality while ownership concentration (t=- 2.5, p˂0.05) had a negative and significant relationship with earnings quality. The study recommended that the institutional ownership which shows a positive relationship with earnings quality enables improved earnings of the sampled listed banks. More institutional participation should be allowed in the Nigerian listed banks as it was proved that they have the power to monitor the affairs of managers as this will have a positive impact on earnings. Concentration ownership gives mangers incentives to manage earnings to achieve short term opportunistic interest; therefore it should not be encouraged.

scholarly journals PENGARUH LIKUIDITAS, LEVERAGE DAN GROWTH TERHADAP KINERJA INDUSTRI MAKANAN DAN MINUMAN YANG TERCATAT DI INDONESIA STOCK EXCHANGE SELAMA PERIODE TAHUN 2011 - 2015

2019 ◽  
Vol 2 (2) ◽  
pp. 81
Author(s):  
Nardi Sunardi ◽  
Anisa Sari Sasmita
Keyword(s):  
Stock Exchange ◽  
Least Square ◽  
Current Ratio ◽  
Purposive Sampling ◽  
Ordinary Least Square ◽  
Equity Ratio

ABSTRACT Populasi penelitian ini adalah Perusahaan makanan dan minuman yang tercatat pada Bursa Efek Indonesia pada tahun penelitian 2011 sampai dengan 2015. Metode penentuan sampel dengan metode purposive sampling, dengan beberapa kriteria yang telah ditentukan  maka jumlah sampel adalah sebanyak 6 perusahaan makanan dan minuman. Data penelitian merupakan data sekunder diperoleh dari Indonesia Stock Exchange (IDX) tahun 2011 sampai dengan tahun 2015. Menjawab masalah penelitian dan pengujian hipotesis penelitian digunakan pendekatan regresi panel yang akan digunakan yaitu ordinary least square (OLS). Untuk mengolah data sekunder yang didapat, peneliti mengunakan program aplikasi bantuan software diantaranya MS.Exel 2010 meliputi pembuatan tabel dan grafik untuk analisis deskriptif. Sedangkan kegiatan pengolahan data statistik dengan EVIEWS versi 9.0 digunakan untuk membantu dalam menganalisis data yang digunakan dalam melakukan pengujian signifikasi analisis regresi data panel. Keyword : Return On Asset, Current Ratio, Debt to Equity Ratio, Growth

scholarly journals The effect of the firm’s age and financial leverage on its dividend policy – evidence from Kuwait stock exchange market (KSE)

2015 ◽  
Vol 13 (1) ◽  
pp. 24-31 ◽  
Author(s):  
Turki Al-Sabah
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Least Square ◽  
Panel Regression ◽  
Exchange Market ◽  
Financial Leverage ◽  
Dividend Payout ◽  
Ordinary Least Square ◽  
Kuwait Stock Exchange

Identifying the major determinants of companies’ dividend policy has been the pith of various researchers and industry practitioners as well. In this research, the effect of the firms’ financial leverage and age on their dividend policy has been explored. Two hypotheses were formulated, where the first focused on examining the effect of the firms’ financial leverage and the second concentrated on investigating the effect of the firms’ age on their dividend policy. The sample assimilated in this study comprises of 38 Kuwait Stock Exchange listed companies from different industries. The period of investigation was five years, from 2009 to 2013. The hypotheses were tested using ordinary least square and fixed-effect panel regression. The results signify a negative relationship between the firm’s financial leverage and dividend payout ratio. Moreover, the results indicate a negative relationship between the firm’s age and dividend payout ratio.

scholarly journals THE EFFECT OF MANAGERIAL OVERCONFIDENCE ON CORPORATE INVESTMENT

2020 ◽  
Vol 10 (1) ◽  
pp. 49
Author(s):  
Mochamad Ali Fudin Al Islami ◽  
Muhammad Madyan
Keyword(s):  
Maximum Likelihood ◽  
Positive Impact ◽  
Stock Exchange ◽  
Likelihood Estimation ◽  
Corporate Investment ◽  
Least Square ◽  
Analysis Method ◽  
Ordinary Least Square ◽  
Managerial Overconfidence ◽  
The Impact

The research aims to analyze the impact of managerial overconfidence on corporate investment (investment scale, overinvestment and underinvestment) using companies listed in Indonesia’s Stock Exchange in 2012-2018 as a sample. The analysis method used Ordinary Least Square and robustness test used Maximum Likelihood  Estimation. The result shows that managerial overconfidence has a significantly positive impact on the corporate investment scale. It means that managerial overconfidence makes overinvestment problem more severe (more inefficient) and underinvestment problem less severe (more efficient).

scholarly journals The effect of ownership structure on leverage with credit rating as a moderating variable

2020 ◽  
Vol 3 (2) ◽  
pp. 80-87
Author(s):  
Harjum Muharam ◽  
Galuh Kusuma Putri
Keyword(s):  
Ownership Structure ◽  
Sampling Method ◽  
Credit Rating ◽  
Stock Exchange ◽  
Least Square ◽  
Managerial Ownership ◽  
Government Ownership ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
The Relationship

This paper aims to examine the effect of ownership structure on leverage with credit rating as a moderating variable. The ownership structure used in this study is government ownership and managerial ownership. Leverage is measured using a debt to assets ratio (DAR). Credit rating uses ratings issued by PEFINDO.The sample used in this study was companies rated by PEFINDO and listed on the Indonesia Stock Exchange in 2015-2017. The number of samples used were 53 companies determined using a purposive sampling method. The analysis using Ordinary Least Square (OLS) regression analysis indicated that government ownership does not affect leverage, and the credit rating does not moderate the relationship between government ownership and leverage. Managerial ownership has a negative effect on leverage, and the credit rating moderates the relationship between managerial ownership and leverage

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