scholarly journals Impact of Financial Leverage on Firm Profitability: Evidence from Non-Financial Firms Listed in Colombo Stock Exchange- Sri Lanka

2021 ◽  
Vol 1 (1) ◽  
pp. 80
Author(s):  
M. Ravindran ◽  
L. Kengatharan
Keyword(s):  
Sri Lanka ◽  
Stock Exchange ◽  
Financial Leverage ◽  
Financial Firms ◽  
Firm Profitability

scholarly journals ANALISIS FAKTOR – FAKTOR YANG MEMPENGARUHI INITIAL RETURN SETELAH IPO DI BURSA EFEK INDONESIA PERIODE 2017-2019

2021 ◽  
Vol 6 (1) ◽  
pp. 77-90
Author(s):  
Debi Carolina ◽  
Dwi Desy Miswati
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Leverage ◽  
Factors Affecting ◽  
Financial Firms ◽  
Initial Return ◽  
Public Offering ◽  
The Impact ◽  
A Company

Initial Public Offering is a mechanism in which a company for first time issues new stock and is then offered to the public. The factors affecting the initials return are Return On Asset, Financial Leverage, and Earning Per Share. The problems with this research are (1) What is the development of return on asset, financial leverage, earning per share and initial return on non-financial firms registered in BEI? (2) How does return on asset, financial leverage, and earning per share affect the initials return partially? (3) How does return on asset, financial leverage, and earning per share affect the initials return simultaneously? The purposes of this research are (1) To find out the progression of return on asset, financial leverage, earning per share, and initial return. (2) To know the impact of return on asset, financial leverage, and earning per share toward the initial return partially. (3) To know the impact of return on asset, financial leverage, and earning per share toward the initial return simultaneously. Locus in this research is conducted on a company that did IPO and registered to the Indonesian Stock Exchange in 2017-2019. The number of peoples in this research are 145 companies, and the selection of samples was used by purposive sampling technique to 34 IPO companies listed in the Indonesian Stock Exchange as a research. The method of data analysis used is descriptive and verificative, where it makes classical assumptions and multiple linear regression tests. Simultaneous research reveals that there have been significant effects on initials return. And partial, financial leverage has a positive effect on the initials return. Whereas the return on asset and earning per share have no effect on initials return.

The Resilience of Central Bank Interest Rate on the Association of Financial Leverage and Firm Performance

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Adnan Ahmad ◽  
Pir Bilal ◽  
Ihtesham Khan
Keyword(s):  
Firm Performance ◽  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Stock Exchange ◽  
Moderating Effect ◽  
Financial Leverage ◽  
Composite Effect ◽  
Firm Profitability ◽  
Lending Decisions

This study investigates the moderating effect of the Central Bank's interest rate on the relationship between financial leverage and firm profitability. The study uses panel data of Pakistani firms listed on Pakistan Stock Exchange for the period 2009-2016 with fixed effect regression analysis. Firm profitability is used as a dependent variable and is measured by EBIT and ROE while leverage andCentral Bank's Interest Rate (SBIR) are used as Independent variables. Results show that leverage isnegatively associated and statistically significant with firm performance (FP) while SBIR is negativelyrelated but this relation is statistically not significant. This imply that SBIR has no direct effect on firm performance. The important factor is the composite effect of leverage and SBIR on FP, which isnegative and statistically significant. These results imply that the central bank's policy of discountrates has an indirect effect on FP as this policy affects lending decisions of the firm. All these findings are consistent with previous studies. The study adds to the existing literature of banks interest rates and leverage in the sense that when government increases interest rates, it indirectly affects the firm performance as a firm may or may not be able to get credit from these financial institutions. Thus,government and policy makers are to take into account firms' performances and overall capitalmarket while changing he interest rates of the country. Keywords: Financial leverage; Central bank interest rate; Profitability; Moderating effect

PRAKTEK PERATAAN LABA: STUDI EMPIRIS DI BURSA EFEK INDONESIA

2011 ◽  
Vol 7 (1) ◽  
pp. 65
Author(s):  
Indriana Kurniawati
Keyword(s):  
Stock Exchange ◽  
Industrial Sector ◽  
Income Smoothing ◽  
Profit Margin ◽  
Financial Leverage ◽  
Dividend Payout ◽  
Return On Equity ◽  
Net Profit ◽  
Firm Profitability

Income smoothing is an action to increase or decrease profit resulted by a firm in order that its profit looks to be stabile or not to be fluctuated. The purpose of this research is to find out the effect of the measurement of firm, profitability, financial leverage, dividend payout ratio, and industrial sector toward the practice of profit instrument in firm registered in Indonesian stock exchange. Observation is done for 5 years, namely from the year 2004 to 2008. Sample used in this research was totaled 173 firms, all of them classified more to the group of firm which did not or make average profit using Eckel Index. The result of this research showed that the measurement of firm, net profit margin, and dividend payout ratio did not influence the practice of income smoothing. While return on equity, financial leverage, and industrial sector were influenced the practice of income smoothing.Keywords: income smoothing, eckel index, profitability.

scholarly journals Dividend Policy and Share Price Volatility: Evidence from Listed Non-Financial Firms in Sri Lanka

2021 ◽  
Vol 22 (1) ◽  
pp. 227-239
Author(s):  
Lingesiya Kengatharan ◽  
Jeyan Suganya Dimon Ford
Keyword(s):  
Sri Lanka ◽  
Firm Size ◽  
Dividend Policy ◽  
Price Volatility ◽  
Share Price ◽  
Dividend Yield ◽  
Financial Leverage ◽  
Explanatory Variables ◽  
Financial Firms ◽  
The Impact

The prime objective of this research is to investigate the impact of dividend policy on share price volatility in Colombo Stock Exchange (CSE). A sample of 81 listed non -financial firms from CSE in Sri Lanka is examined using panel data analysis for a five years period from 2013 to 2017. Dividend policy of the firms has been measured by dividend pay-out, dividend yield and dividend per share and which are explanatory variables of the study after controlling for firm size and financial leverage. According to the random effect regression analysis, only 25% of the movements in share prices are explained by the explanatory variables considered in this study. Dividend yield shows significant positive impact on share price volatility whereas dividend per share shows the significant negative impact on share price movements. Firm size illustrates significant negative influence on share price volatility by indicating large size of companies share price volatility is high. But, dividend pay-out and financial leverage are not significantly persuaded on share price volatility in this study. Therefore, it is concluded that dividend yield, dividend per share and firm size have significant impact on price volatility in Sri Lankan context and findings of the study are in line with the dividend relevance theory. Dividend policy can be considered as the protective mechanism to maintain share price volatility in order to enhance the shareholders wealth.

Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial Firms in Pakistan

GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Return On Equity ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Ordinary Least Square Regression

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.

The Effect of Underreaction and Overreaction of Firm Stocks to Firm Valuation: Data from the Indonesian Stock Exchange

2019 ◽  
Author(s):  
Yohanes Indrayono
Keyword(s):  
Behavioral Finance ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Investor Sentiment ◽  
Firm Valuation ◽  
Good News ◽  
Industrial Sectors ◽  
Tangible Assets ◽  
Firm Profitability

<p>This study contributes to the on-going studies on behavioral finance by providing a case study on underreaction and overreaction of firm stocks to firm valuation. We use the Model of Investor Sentiment (Barberis et al., 2005) to evaluate underreaction and overreaction behavior and reflect on specific findings in the Indonesian market. The result of the study is most of the stocks in the Indonesian Stock Exchange are more overreaction to the news of firm financial statements. Firms on the industry with more intangible assets measure more overreaction than firms on industries with more tangible assets. For stocks with overreaction, the stock firm value is positively affected by a change in the total assets and profitability, but not by change of book value. The result concretized no evidence that firm stocks overreacted to the news more than underreacting. In stock industrial sectors, the financial institutions and wholesale industry stocks demonstrated remarkable overreactions. Nonetheless, automotive, building construction, food and beverage as well as cement evidenced more underreaction. For better return in financial markets, investors may buy stocks of the firm on industry with more tangible assets when there is no good news about the increasing firm profitability and sales; nonetheless, they should buy stocks of the firm on industry with more intangible assets when there is no lousy news about the increasing firm profitability and sales. </p>

ANALISIS VARIABEL YANG BERPENGARUH TERHADAP KINERJA PERUSAHAAN DI BURSA EFEK INDONESIA

2019 ◽  
Author(s):  
SUSENO - SUSENO
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Stock Exchange ◽  
T Test ◽  
The Other ◽  
Financial Leverage ◽  
F Test ◽  
Research Results ◽  
Independent Variables ◽  
Influential Variable

ANALISIS VARIABEL YANG BERPENGARUH TERHADAP KINERJA PERUSAHAAN DI BURSA EFEK INDONESIAOleh : Suseno STIE SATRIA Purwokerto ABSTRACT The aims of the research are (1) to analyze influence of age, scale, financial leverage, and profitability to performance of firms at The Indonesian Stock Exchange. (2) to determine the most influential variable on the performance of the firms. Hypotheses proposed in this research were: (1) Age, Scales, Financial Leverage, Profitability influences the performance of firms, (2) Age influences the performance of firms, (3) Scales influences the performance of firms, (4) Financial Leverage influences the performance of firms, (5) Profitability influences the performance of firms. Instrument of analysis employed in the research was multiple linear regression with t test and F test.The results of analyses of t test showed that profitability did not influence the performance of the firms. It was indicated by the value of computed t which was smaller than the value of t table. Meanwhile, the t test of age, scale and financial leverage indicated that the value of computed t &gt; t table. It means that these variables (scale and financial leverage) influenced the performance of the firms. The F test showed that the independent variables of age, scale, financial leverage and profitability as a whole significantly influenced the performance of the firms. It was indicated by the calculated F &gt; the value of F table, the value the age computed t which was smaller than the value of -t table..Based on the research results that age and profitability do not influence the performance of the firms, it is suggested that investors should not pay any attention to those variables. On the other hand, they should pay attention to the variables of scale and financial leverage. It is recommended that for further research should include longer periode of the sample.

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