scholarly journals Impact of Agency Costs on Financial Performance of Listed Consumer Goods Companies in Nigeria

2020 ◽  
pp. 51-55
Author(s):  
Binta Abubakar Nuhu ◽  
Kabiru Isa Dandago ◽  
Lawal Mohammad ◽  
Abdullahi Bala Ado ◽  
Umar Farouk Abdulkarim
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Consumer Goods ◽  
Agency Costs ◽  
Free Cash Flow ◽  
Annual Reports ◽  
Cash Dividend ◽  
Panel Data Regression ◽  
Data Regression ◽  
Free Cash Flow Hypothesis

This paper examined impact of agency costs on financial performance of listed consumer goods companies in Nigeria. The research utilized documentary data collected from annual reports of consumer goods companies in Nigeria for the period of 2007-2016. A panel data regression technique was employed. The study reveals inverse relationship between agency costs and financial performance, indicating that agency costs will lead to a decline in financial performance, if not properly managed. Based on this result the study recommends that managements of listed consumer goods companies in Nigeria should lay down effective rules and regulations that will ensure avoidance of keeping free cash flow at managers’ discretion so that agency costs could be minimized and effectively managed. This could be achieved by complying with the suggestions by free cash flow hypothesis paying it out in the form of cash dividend or committing the firms in to more financial obligations which requires periodic interest payments. There should be critical reviewed before such action are taken by companies in consumer goods industries.

scholarly journals Dampak Rasio Keuangan Dan Good Corporate Governance Terhadap Nilai Perusahaan

2021 ◽  
Vol 3 (2) ◽  
pp. 538
Author(s):  
Velecia Apriana ◽  
Herman Ruslim
Keyword(s):  
Corporate Governance ◽  
Cash Flow ◽  
Firm Value ◽  
Free Cash Flow ◽  
Flow Ratio ◽  
Current Ratio ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Panel Data Regression ◽  
Data Regression

This study aims to examine the effect of financial ratios (liquidity, profitability, and free cash flow) and good corporate governance (independent board of commissioners) on firm value by using time-series data of property and real estate companies listed in Indonesia Stock Exchange in the period of 2015-2019. The samples of this study were 33 firms (165 observations). The method used in this study is multiple panel data regression analysis using E-Views 10.0 software. Firm value is measured by Tobin’s Q, liquidity is measured by current ratio, profitability is measured by return on equity, free cash flow is measured by free cash flow ratio, and independent board of commissioners is measured by independent commissioners ratio. The results show that liquidity and free cash flow significantly influence firm value, but profitability and independent board of commissioners do not have any significant influence on firm value. Penelitian ini bertujuan untuk menguji pengaruh rasio keuangan (liquidity, profitability, dan free cash flow) dan good corporate governance (independent board of commissioners) terhadap firm value dengan menggunakan data time-series pada perusahaan property dan real estate yang terdaftar di BEI periode 2015-2019. Sampel pada penelitian ini berjumlah 33 perusahaan (165 observasi). Metode yang digunakan dalam penelitian ini adalah panel data regression analysis menggunakan software E-Views 10.0. Firm Value diukur menggunakan Tobin’s Q, liquidity diukur menggunakan current ratio, profitability diukur menggunakan return on equity, free cash flow diukur menggunakan free cash flow ratio, dan independent board of commissioners diukur menggunakan independent commissioners ratio. Hasil penelitian menunjukkan bahwa liquidity dan free cash flow berpengaruh signifikan terhadap nilai perusahaan, tetapi profitability dan independent board of commissioners tidak berpengaruh signifikan terhadap firm value.

scholarly journals The Influence of Operating Cycle, Cash Flow Volatility, and Audit Fee on Earnings Persistence (The Indonesian Cases)

2020 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
I gusti ketut agung Ulupui
Keyword(s):  
Panel Data ◽  
Cash Flow ◽  
Annual Reports ◽  
Earnings Persistence ◽  
Manufacturing Companies ◽  
Operating Cycle ◽  
Panel Data Regression ◽  
Data Regression ◽  
Audit Fee ◽  
Cash Flow Volatility

Abstract: Research is aiming at analyzing the influence of operating cycle, cash flow volatility, and audit fee on earnings persistence by studying manufacturing companies listed on Indonesia Stock Exchange (IDX) within 2013–2017. This research studied secondary data from documents in the forms of annual reports and financial reports of the companies taken from IDX website. After conducting a purposive sampling method, 12 companies were chosen to be the samples with 60 total observations. The data were analyzed by using descriptive statistics and panel data regression using Common Effect Model (CEM) processed by Eviews 10. Earnings persistence as the dependent variable was proxied by the regression coefficient from the regression model of previous year earnings towards the current earnings. The independent variable operating cycle was proxied by the means of accounts receivable turnovers and the means of the inventory turnovers. The cash flow volatility was proxied by the standard deviation of the cash flow operation divided by the total assets. The audit fee was proxied by the natural logarithm of the amount of audit fee. The panel data regression analysis showed that operating cycle has significant influence on earnings persistence. The results explain that companies with shorter operating cycle have high earnings persistence. The results also showed that cash flow volatility and audit fee have no influence on earnings persistence. Keywords: earnings persistence; operating cycle; cash flow volatility; audit fee; manufacturing sector. 

Relationship between ownership concentration and financial performance of deposit money banks in Nigeria: Does a turning point exist?

2019 ◽  
Vol 7 (2) ◽  
pp. 32 ◽  
Author(s):  
Junaidu Muhammad Kurawa ◽  
Umar Habibu Umar
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Linear Relationship ◽  
Turning Point ◽  
The Other ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Relationship

This study seeks to establish a non-linear relationship between ownership concentration and financial performance of the listed Deposit Money Banks (DMBs) in Nigeria. The data were extracted from the annual reports and accounts of six (6) sampled DMBs from 2003 to 2014.  A panel data regression technique was used to analyse the data collected. The study establishes that the relationship between ownership concentration and the financial performance of listed DMBs in Nigeria changes from negative to positive when the ownership concentration reaches 54.94%. This signifies that the relationship between ownership concentration and financial performance is negative if the concentration is below 54.94%. On the other hand, the relationship is positive if it is concentrated above 54.94%.  Hence, it is recommended that the ownership of DMBs should not be concentrated below the cut-off point (54.94%) with the view to earning profits.

scholarly journals INSIDER OWNERSHIP, FREE CASH FLOW, DAN PERTUMBUHAN TERHADAP DIVIDEND PAYOUT RATIO

2020 ◽  
Vol 12 (1) ◽  
pp. 7-14
Author(s):  
Yessri Meiliyawati ◽  
Ellen Rusliati
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Dividend Payout ◽  
Insider Ownership ◽  
Mining Companies ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
Positive Effect

Dividend alongside capital gain is a return for stock holder. The aim of this study is to determine the condition of insider ownership, free cash flow, growth and dividend payout ratio, and to determine their effect of insider ownership, free cash flow and growth simultaneously and partially on dividend payout ratio. The population were mining companies sector listed in Indonesia Stock Exchange in the period of 2010-2017. The sample of this study is amounted to 4 companies with the amount of observations were 32. The method used were descriptive and verificative using panel data regression. The results showed that simultaneously insider ownership, free cash flow and growth has significant effect on dividend payout ratio with contribution of effect 68.19%. Partially, insider ownership has a significant positive effect, free cash flow and growth have significant negative effect on dividend payout ratio.

scholarly journals Determinan Islamic Social Report Disclosure Industri Barang Konsumsi yang terdaftar di Indeks Saham Syariah Indonesia (ISSI)

2020 ◽  
Vol 10 (3) ◽  
pp. 170-181
Author(s):  
Nur Nugrahani Setiawati ◽  
Sigid Eko Pramono ◽  
Endri
Keyword(s):  
Consumer Goods ◽  
Foreign Ownership ◽  
Stock Index ◽  
Annual Reports ◽  
Analysis Model ◽  
Social Report ◽  
Panel Data Regression ◽  
Content Analysis Method ◽  
Data Regression ◽  
Positive Effect

This study aims to analyze the influence of company size, muslims on board, women on board, company age, foreign ownership, Islamic securities, profitability, liquidity, leverage against Islamic Social Report disclosures of listed Consumer Goods Industries in Indonesia Sharia Stock Index (ISSI) in 2011-2017. The sample consists of 23 listed Consumer Goods Industries in Indonesia Sharia Index (ISSI) in 2011-2017. Annual reports were analyzed by content analysis method and Panel Data Regression Analysis Model was used to test hypotheses. The analysis shows that company's size, company's age, profitability have a significant positive effect on disclosure of the Islamic Social Report (ISR) in Consumer Goods Industries. Meanwhile, muslims on board, women on board, foreign ownership, Islamic securities, liquidity, leverage have no significant effect towards the disclosure of Islamic Social Report on Consumer Goods Industries.

What Drives the Cash Dividend Policy of the Poorly Performing Firms in Hong Kong?

2008 ◽  
Vol 11 (03) ◽  
pp. 347-361 ◽  
Author(s):  
Louis T. W. Cheng ◽  
Hung-Gay Fung ◽  
T. Y. Leung
Keyword(s):  
Hong Kong ◽  
Cash Flow ◽  
Dividend Policy ◽  
Free Cash Flow ◽  
The Self ◽  
Cash Dividend ◽  
Market Transparency ◽  
Good Market ◽  
Self Interest ◽  
Free Cash Flow Hypothesis

We use financial data on poorly performing firms in Hong Kong to examine the motives behind paying out cash dividends when they suffer an earnings decline. We test three hypotheses behind the cash dividend policy: the maturity hypothesis, the free cash flow hypothesis, and the self-interest hypothesis of directors (i.e., the cash channeling hypothesis of directors). The findings are largely consistent with the maturity hypothesis and the free cash flow hypothesis but do not support the cash channeling hypothesis, confirming good market transparency and governance of the Hong Kong market.

scholarly journals Corporate Governance and Firm Performance: A Study of High Agency Costs of Free Cash Flow Firms

2018 ◽  
Vol 12 (2) ◽  
pp. 2724-2731
Author(s):  
Dan Lin ◽  
Lu Lin
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Cash Flow ◽  
Agency Costs ◽  
Composite Index ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Return On Equity ◽  
Free Cash Flow Hypothesis ◽  
Free Cash Flows

Excessive free cash flows can lead to high agency problems as retaining free cash flow reduces the ability of capital market to monitor managers. Managers are also likely to waste the free cash flow on value-decreasing investments. Based on the free cash flow hypothesis, this study examines the relationship between corporate governance and firm performance of a sample of high agency costs of free cash flow firms, which is defined as firms that have high free cash flow and low investment opportunities. The sample firms are extracted from firms listed on the S&P/TSX composite index between 2009 and 2012. Using corporate governance scores provided by The Globe and Mail, this study finds that better corporate governance is associated with better firm performance, measured by return on equity. The results highlight the importance of corporate governance in protecting shareholders’ interests.

scholarly journals The double-edged sword of corporatisation in the hospital sector: evidence from Indonesia

2016 ◽  
Vol 12 (1) ◽  
pp. 61-80 ◽  
Author(s):  
Asri Maharani ◽  
Gindo Tampubolon
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Financial Performance ◽  
System Performance ◽  
Hospital Performance ◽  
Public Hospitals ◽  
Health System Performance ◽  
The Past ◽  
Panel Data Regression ◽  
Data Regression

AbstractHoping to improve their health system performance, many countries have corporatised their hospitals in the past 20 years. What this means for hospital performance remains as yet largely unknown. This study looks into the association of corporatisation and hospital performance in Indonesia. We apply panel data regression analysis to survey data on 54 public hospitals in East Java province. Our analysis suggests that corporatisation is associated with higher hospital income and expenditure, but fails to improve efficiency and equity. These findings suggest that hospital corporatisation policy in Indonesia should increase emphasis on efficiency and equity rather than on financial performance alone.

scholarly journals Analysis Of Financial Health Level On Financial Performance In Cement Companies Listed On The Indonesian Stock Exchange (Idx)

2020 ◽  
Vol 18 (3) ◽  
pp. 125
Author(s):  
Dhea Zatira ◽  
Ria Puspitasari
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Market Value ◽  
Financial Health ◽  
Z Score ◽  
Working Capital ◽  
Book Value ◽  
Panel Data Regression ◽  
Data Regression ◽  
Retained Earnings

This study aims to analyze the Level of Financial Soundness on Financial Performance in Cement Companies that are Go Public Listed on the Indonesia Stock Exchange (BEI). Analysis of the level of financial health using the Altman Z-Score with several ratios, namely the ratio of Working Capital to Total Assets (X1), the ratio of retained earnings to total assets (X2), the ratio of EBIT to Total Assets (X3), the ratio of stock market value to book value ofabilities (X4), the ratio of Sales to Total Assets (X5) to the dependent variable on Financial Performance (Return on Assets). The data analysis technique used in this research is the Altman Z-Score with the criteria for bankruptcy and to find its effect with the panel data regression model assisted by E-Views software. The results of the calculation and analysis of the Z-Score criteria in cement companies in Indonesia, it is known that there is no cement company whose company finances are stated in a healthy condition. One company is prone to bankruptcy (gray zone) while the rest according to the Z-Score criteria are bankrupt. Furthermore, based on the panel data regression examiner simultaneously the five independent variables on financial performance (Y), while partially the working capital ratio to total assets (X1) affects financial performance (Y), the retained earnings ratio to total assets (X2) has no effect on Financial performance (Y), EBIT ratio to total assets (X3) affects financial performance (Y), stock market value ratio to book value of liabilities (X4) has no effect on financial performance (Y), Sales to Total Assets ratio (X5) affect financial performance.

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