Firm Value and Self-Insurance

2019 ◽  
Vol 8 (1) ◽  
pp. 59-73
Author(s):  
Mu-Sheng Chang ◽  
Hsin-Hui Chiu ◽  
Yanbo Jin
Keyword(s):  
Firm Value ◽  
Treatment Effects ◽  
Positive Impact ◽  
Risk Preference ◽  
Market Valuation ◽  
Time Dependent ◽  
Workers Compensation ◽  
Risk Transfer ◽  
Alternative Risk Transfer ◽  
The Relationship

This article explores whether the alternative risk-transfer technique in the form of self-insurance can add value to the manufacturers that have self-insured for workers' compensation (WC) losses. The authors focus on publicly-owned manufacturers with at least 1,000 employees in California over the period 1970–2015 to examine the value implications of self-insurance adoption. This study employs a treatment-effects model to simultaneously estimate the determinants of self-insurance and the effect of self-insurance on firm value. The authors find that the relationship between firm value and self-insurance is time dependent. Risk preference for self-insurance reflects in higher market valuation among manufacturers over the periods of 1970–1983 and 1986–1999. These results suggest that self-insurance has a positive impact on firm value in the 1970s through the 1990s except for the liability crisis years 1984–1985. However, the benefits of self-insurance fail to materialize for self-insured manufacturers in the 2000s.

scholarly journals Exploring the moderating effect of family CEO on the association between family ownership and firm value: An empirical analysis of top Indian family firms

2015 ◽  
Vol 12 (2) ◽  
pp. 349-361
Author(s):  
Lakshmi Kalyanaraman
Keyword(s):  
Family Member ◽  
Empirical Analysis ◽  
Interaction Effect ◽  
Firm Value ◽  
Family Firms ◽  
Stock Exchange ◽  
Moderating Effect ◽  
Market Valuation ◽  
Family Ownership ◽  
The Relationship

We study 288 family firms included in the NSE CNX 500 index of the National Stock Exchange of India. We find an entrenchment-alignment-entrenchment relationship between family ownership and firm value. We show that family CEO has a negative moderating effect on the relationship between family ownership and firm value. When the interaction effect of Family CEO on family ownership is controlled, only family shareholding in the alignment range is found to be statistically significant. The study shows that family firms with family CEO suffer from a decrease in market valuation. This finding is extremely valuable given the fact that India is dominated by family firms and majority of family firms appoint a family member as CEO

scholarly journals IMPLEMENTASI ENVIRONMENTAL MANAGEMENT ACCOUNTING DAN NILAI PERUSAHAAN: KINERJA OPERASIONAL PERUSAHAAN SEBAGAI PEMEDIASI

AJAR ◽  
2021 ◽  
Vol 4 (02) ◽  
pp. 110-132
Author(s):  
Ester Putri Gita Pratiwi ◽  
Dyna Rachmawati
Keyword(s):  
Environmental Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Management Accounting ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Mediating Role ◽  
Environmental Management Accounting ◽  
The Relationship

The aim of this study is to test the implementation of environmental management accounting (EMA) on firm value indirectly through operational performance. EMA consists of Monetary Environmental Management Accounting (MEMA) and Physical Environmental Management Accounting (PEMA). This study uses 329 and 325 firm respectively for MEMA and PEMA. Research samples are manufacturing companies listed in Indonesian Stock Exchange during the period of 2017-2019. The results show that EMA, MEMA, and PEMA have no statistically effect on either to operational performance and firms’ value. It indicates that operational performance has no mediating role in the relationship between EMA and firm’s value. This study uses robustness test by replacing MEMA, PEMA with Environmental Quality Cost (EQC) approach as the measurement of EMA. EQC consists of prevention, detection, internal failure and external failure. The robustness test shows that EQC has positive impact on firms’ value indirectly through operational performance. It means that operational performance has mediating role in the relationship between EQC and firm’s value. This study contributes academically that EQC approach is the best measurement for EMA in manufacturing companies. Therefore, we suggest for the next study can adopt the EQC approach as the measurement of EMA.

scholarly journals The Impact of Options Trading on the Relationship between Research Quotient and Firm Performance

2017 ◽  
Vol 9 (6) ◽  
pp. 141
Author(s):  
Han-Ching Huang ◽  
Calista Amelia Irawan
Keyword(s):  
Stock Market ◽  
Firm Value ◽  
Stock Return ◽  
Positive Impact ◽  
Firm Innovation ◽  
Option Trading ◽  
Stock Market Return ◽  
Option Volume ◽  
The Impact ◽  
The Relationship

The performance of innovation could be counted by the number of patent. Patent information enables a firm to estimate R&D efficiency and stock market value. Nonetheless, patents is not universal because more than 50% companies in COMPUSTAT do not patent their new products. Since patents have some drawbacks, Cooper, Knott, and Yang (2015) use Research Quotient (RQ) as an indicator of firm innovation because RQ measures the productivity of the R&D department, which produces a new innovative product and transforms it into revenues. In this paper, we examine the impact of option trading on the relation between RQ and stock market return (or firm value). We find that RQ has the positive impact on firm value, proxy by market-to-book (MTB) value. The option dummy, which is the firm with option trading, has significantly positive impact on the relation between RQ and firm value and insignificantly positive impact on the relation between RQ and future stock return. Nonetheless, interaction term of RQ and option volume has positive and significant impacts on MTB and future stock return.

scholarly journals Pengaruh Profitabilitas dan Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Moderasi Kebijakan Dividen: Studi Pada Perusahaan Properti, Real Estate dan Konstruksi Bangunan Yang Terdaftar di Bursa Efek Indonesia Periode 2013-2017

2020 ◽  
Vol 1 (2) ◽  
pp. 50-65
Author(s):  
Ali Imron ◽  
Desi Kurniawati
Keyword(s):  
Real Estate ◽  
Firm Size ◽  
Firm Value ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Book Value ◽  
Construction Companies ◽  
Relationship Of ◽  
The Relationship

This study purposed to determine the effect of profitability proxy with Earning Per Share (EPS) and firm size is proxied by logarithm natural of total assets to firm value which proxied by Price Book Value (PBV) and to find out whether dividend policy proxied by Dividend Payout Ratio (DPR) be moderateted the relationship of profitability and firm size against firm value. The population in this study were all the property, real estate and building construction companies sector listed on Indonesia Stock Exchange for 2013 -2017. The sample in this study were 9 companies out of 62 population obtained through purposive sampling method. Data analysis techniques used in this study was Moderated Regression Analysis (MRA). The results of this study is: (1) Profitability has positive and significant impact to firm value. (2) Firm size has positive impact but not significant to firm value. (3) Dividend policy are able to moderate the effect of profitability against firm value. (4) Dividend policy can not moderate the effect of firm size against firm value.

scholarly journals STRUKTUR MODAL SEBAGAI VARIABEL MODERASI PENGARUH LIKUIDITAS DAN PROFIBILITAS TERHADAP FIRM VALUE

2021 ◽  
Vol 19 (3) ◽  
pp. 457-470
Author(s):  
Irma Indira ◽  
Eva Wany
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Sampling Method ◽  
Banking Sector ◽  
Positive Impact ◽  
Purposive Sampling ◽  
The Relationship ◽  
The Capital Structure ◽  
Research Studies

This research aims to conduct testing as well as know the capital structure moderating the influence of liquidity and profitability on firm vaue. The place where this research was conducted is in IDX where it uses the banking sector. The samples used in this study used  purposive sampling method with samples of 96 companies from 2016 to 2019. In research studies the use of methods is used to explain the relationship and influence on variables using multiple analysts. The results of this study have proven the results if liquidity has a negative and significant impact on the firm value,while profitability has a positive impact on the firm value. The capital structure is able to moderate liquidity in firm value but does not moderate the influence of prifitability on firm value.

Understanding the Association between IT Governance Maturity and IT Governance Disclosure

2014 ◽  
Vol 5 (1) ◽  
pp. 16-33 ◽  
Author(s):  
Stefan Bünten ◽  
Anant Joshi ◽  
Steven De Haes ◽  
Wim Van Grembergen
Keyword(s):  
Firm Value ◽  
Positive Impact ◽  
It Governance ◽  
It Services ◽  
Related Information ◽  
Maximum Value ◽  
External Stakeholders ◽  
The Impact ◽  
The Relationship ◽  
Governance Disclosure

IT governance (ITG) provides a toolbox for companies to realize maximum value from IT. Firms implement ITG via frameworks, such as COBIT or VALIT, which list processes to align business and IT strategies, deliver IT services and comply with regulations. While there exists evidence that companies with mature ITG processes outperform their competitors and that signaling ITG maturity to external stakeholders has a positive impact on firm value, little research has focused on the relationship between IT governance maturity and disclosure of related information. This study examines the association of COBIT and VALIT maturity on IT governance disclosure. The authors posit that overall maturity in COBIT and VALIT have a positive impact on IT governance disclosure. Our results indicate that there exists a positive impact for COBIT maturity and most of its domains on disclosure, while the impact of VALIT maturity on disclosure is mostly insignificant.

CEO board membership: implications for firm value

2018 ◽  
Vol 30 (3) ◽  
pp. 352-370
Author(s):  
Michelle Li ◽  
Helen Roberts
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Information Transfer ◽  
Positive Impact ◽  
Board Members ◽  
Data Set ◽  
Content Type ◽  
Board Membership ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the relation between CEO board membership and firm performance. Design/methodology/approach This paper investigates the relationship between firm performance and CEO board membership, applying two-stage least squares, propensity score matching and correcting for self-selection bias across a unique sample of publicly listed New Zealand firms that demonstrate a definitive variation in CEO board membership. Findings This study finds that CEO board membership has a positive impact on firm performance, and these benefits are greater for more complex firms. Research limitations/implications Firms with CEOs independent of the board are associated with lower firm performance. The results are consistent with CEO board members providing an important information transfer mechanism to the board, resulting in an increase in average firm performance. This benefit is greater for larger firms with more business segments. Originality/value The paper tests for the impact of CEO board membership using a data set that demonstrates a definitive variation in CEO board membership.

Social and ethical practices and firm value: the moderating effect of green innovation: evidence from international ESG data

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salim Chouaibi ◽  
Jamel Chouaibi
Keyword(s):  
Firm Value ◽  
Small Sample ◽  
Moderating Effect ◽  
Market Valuation ◽  
Green Innovation ◽  
Data Set ◽  
Ethical Practices ◽  
Content Type ◽  
Dynamic Dimension ◽  
The Relationship

Purpose This study aims to examine the potential effect of integrating social and ethical practices into strategy on the market valuation of environmental, social and governance (ESG) businesses using the moderating effect of green innovation. Design/methodology/approach The sample used consisted of 523 international firms listed on the ESG index and headquartered in North America and Western Europe, forming an unbalanced panel of 7,845 observations spanning the period 2005–2019. The authors run a fixed-effects panel regression model using the Thomson Reuters ASSET4 to test the relationship between societal and ethical practices and the stock market value creation. Similarly, as an extension of the research, this paper exploits two robustness analyzes. The authors tested the dynamic dimension of the data set through the generalized moment method and the effect of the legal system. Findings Evidence reveals a significant positive relationship between societal and ethical practices and businesses’ market valuation. The empirical results indicate that societal and ethical strengths increase firm value with the moderating effect of green innovation and weaknesses reduce it. The results found with the dynamic dimension of the data set indicate the existence of continuity between firm values over time. Research limitations/implications Given the long study period, many firms with missing data were eliminated. To avoid the small sample size, countries with few observations were included, which led to an uneven distribution between observations per country. Practical implications Findings from this paper can help ESG firms to consider their future growth opportunities in a context where the approach of business ethics occupies a central position in business valuation. Originality/value This study is the only study that provides ESG companies with seven different nationalities with evidence for the effect of social and ethical practices regarding market valuation. This paper is also relevant as it addresses the relationship between social effectiveness and financial efficiency, as well as the dynamic effect of this relationship.

Does Endogeneity in Causal Relationships Matter: A Case of Board Independence and Firm’s Market Valuation

2018 ◽  
Vol 4 (1) ◽  
pp. 19-39 ◽  
Author(s):  
Shivan Sarpal
Keyword(s):  
Firm Value ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Market Valuation ◽  
Board Independence ◽  
Outside Directors ◽  
Data Set ◽  
Fixed Effects Regression ◽  
The Relationship

The credibility and rectitude of monitoring effectiveness of non-executive (outside) directors has been highly discussed in the past academia. In this light, the present research involves the testing of endogeneity in the relationship between board independence and firm performance as proxied by firm market valuation. It has utilized the multimethodological approach on the data set of top corporates listed in Indian context. Notably, the application of pooled ordinary least squares (OLS) (static as well as dynamic), fixed effects regression, and system generalized method of moments (GMM) approach under dynamic modeling methodologies has demonstrated varying effects, which in turn, too provide manifestation of the predilection for dynamic system GMM, dynamic pooled OLS, and fixed effects over static pooled OLS. Findings of the research have ultimately concluded insignificant relationship between board independence and firm value. This effect remained robust even after controlling for the effect of board size. The implications of the insignificant board independence–firm value relationship have also been discussed and, thereby, offer useful directions to the regulators and policymakers.

Plasminogen Depletion during Streptokinase Treatment or Two-Chain Urokinase Incubation Correlates with Decreased Clot Lysability Ex Vivo and In Vitro

1993 ◽  
Vol 70 (06) ◽  
pp. 0998-1004 ◽  
Author(s):  
Páll T Önundarson ◽  
H Magnús Haraldsson ◽  
Lena Bergmann ◽  
Charles W Francis ◽  
Victor J Marder
Keyword(s):  
Myocardial Infarction ◽  
Ex Vivo ◽  
Time Dependent ◽  
State Variables ◽  
Thrombolytic Treatment ◽  
Direct Proportion ◽  
Plasmin Activity ◽  
Plasma Exposure ◽  
The Relationship

SummaryThe relationship between lytic state variables and ex vivo clot lysability was investigated in blood drawn from patients during streptokinase administration for acute myocardial infarction. A lytic state was already evident after 5 min of treatment and after 20 min the plasminogen concentration had decreased to 24%, antiplasmin to 7% and fibrinogen 0.2 g/1. Lysis of radiolabeled retracted clots in the patient plasmas decreased from 37 ± 8% after 5 min to 21 ± 8% at 10 min and was significantly lower (8 ± 9%, p <0.005) in samples drawn at 20, 40 and 80 min. Clot lysability correlated positively with the plasminogen concentration (r = 0.78, p = 0.003), but not with plasmin activity. Suspension of radiolabeled clots in normal plasma pre-exposed to 250 U/ml two-chain urokinase for varying time to induce an in vitro lytic state was also associated with decreasing clot lysability in direct proportion with the duration of prior plasma exposure to urokinase. The decreased lysability correlated with the time-dependent reduction in plasminogen concentration (r = 0.88, p <0.0005). Thus, clot lysability decreases in conjunction with the development of the lytic state and the associated plasminogen depletion. The lytic state may therefore limit reperfusion during thrombolytic treatment.

Sign in / Sign up

Export Citation Format

Share Document