scholarly journals Financial Performance of Indian Pharmaceutical Companies: Analysis of Leverage and Cost of Capital

2020 ◽  
Vol 1 (1) ◽  
pp. 13-22
Author(s):  
Ahmed Mahdi Abdulkareem
Keyword(s):  
Cost Of Capital ◽  
Investment Decision ◽  
Financial Statements ◽  
Annual Reports ◽  
Pharmaceutical Companies ◽  
Financial Leverage ◽  
Significant Difference ◽  
The Cost ◽  
Operating Leverage ◽  
Practical Implications

Purpose: The main aim of the study is to examine the performance of selected pharmaceutical companies in India based on the Degree Of Operating Leverage, Degree Of Financial Leverage, Degree Of Combined Leverage, and Cost Of Capital. Approach/Methodology/Design: Five pharmaceutical companies were randomly selected, and the annual reports and financial statements of these companies were analyzed. The analysis methods involved Degree Of Operating Leverage, Degree Of Financial Leverage, Degree Of Combined Leverage, and Cost Of Capital. ANOVA test was also employed to test hypotheses. The study is made for five years from 2013-14 to 2017-18. Findings: The results of the study reveal that there is a significant difference in the (means) variables in terms of leverage (operating, finance, and combined) and cost of capital. All leverages are different to each other and the cost of capital. The analysis reveals that Sun Pharma performed well during the study period, whereas Lupin underperformed in all aspects. Practical Implications: The leverage and cost of capital are very important components for deciding whether to invest or not in pharmaceutical companies. The present study highlights the financial performances and growth of the selected pharmaceutical companies. Originality/value: The results of the paper give certain indicators about the performance of the selected companies. These indicators can be used to inform an investment decision.

PENGARUH PUBLIKASI LAPORAN KEUANGAN TERHADAP VOLUME PERDAGANGAN SAHAM DI BURSA EFEK INDONESIA

2017 ◽  
Vol 13 (1) ◽  
pp. 19
Author(s):  
Mikha Gorbyanto Nuari ◽  
Astuti Yuli Setyani
Keyword(s):  
Capital Market ◽  
Investment Decision ◽  
Rapid Development ◽  
Financial Statements ◽  
T Test ◽  
Stock Trading ◽  
Event Window ◽  
Paired Samples ◽  
Significant Difference ◽  
High Investment

Capital market in Indonesia today is experiencing rapid development, the growth contribute to the high investment that can be seen from the number of shares traded by investors. Financial statements are one of many source which investor used as a source of consideration to make investment decision. The purpose of this study was to examine whether there is a difference between the volume of stock trading before the publication of financial statements and after the publication of financial statements in 20 days event window. The research sample is a group companies that included in the index stock LQ 45 in 2016. Hypothesis testing using a paired sample t-test. The results of this test showed no significant difference between the volume of trade before publication of the financial statements and after the publication of the financial statements.Key terms: financial statements, volume of stock trading, capital market, investmentPasar modal di Indonesia dewasa ini mengalami perkembangan yang pesat, hal tersebut berdampak pada tingginya investasi dilihat dari jumlah saham yang ditransaksikan oleh investor. Laporan keuangan merupakan salah satu sumber informasi bagi investor sebagai bahan pertimbangan dalam melakukan keputusan investasi. Tujuan dari penelitian ini adalah untuk menguji apakah ada perbedaan antara volume perdagangan saham sebelum publikasi laporan keuangan dengan sesudah publikasi laporan keuangan pada event window 20 hari. Sampel penelitian merupakan perusahaan yang masuk dalam kelompok indeks saham LQ 45 pada tahun 2016. Pengujian hipotesis dilakukan dengan menggunakan uji paired samples t-test. Hasil dari pengujian ini menunjukkan tidak adaperbedaan yang signifikan antara volume perdagangan sebelum publikasi laporan keuangan dengan sesudah publikasi laporan keuangan.Kata Kunci: laporan keuangan, volume perdagangan saham, pasar modal, investasi.

Cost of capital and asset characteristic value

2021 ◽  
pp. 2150007
Author(s):  
Bill Y. Shen
Keyword(s):  
Stock Price ◽  
Cost Of Capital ◽  
Investment Decision ◽  
Fair Value ◽  
Secondary Market ◽  
Credit Spread ◽  
Structure Model ◽  
Characteristic Value ◽  
Option Theory ◽  
The Cost

We propose a possible alternative to WACC as cost of capital for a business investment decision through option theory. The cost of capital in this new definition becomes forward-looking and easy to compute with traded market information as inputs. More importantly, it is a fair value- based approach and does not depend on investors’ own expectation. An important parameter “asset characteristic value” is identified and its role is further illustrated by using Merton’s capital structure model. Asset characteristic value can be calibrated by using stock price or credit spread observed from a secondary market.

scholarly journals Trend Analysis of Cost Components in Select Pharmaceutical Companies

2019 ◽  
Vol 8 (4) ◽  
pp. 2289-2298
Keyword(s):  
Pharmaceutical Industry ◽  
Trend Analysis ◽  
Health Benefits ◽  
Annual Reports ◽  
Pharmaceutical Companies ◽  
Manufacturing Costs ◽  
Operating Profit ◽  
The Future ◽  
The Cost ◽  
Cost Components

The purpose in this paper is to identify the cost components which are vital in consideration towards manufacturing especially in pharmaceutical companies. The manufacturing costs are significant in total expenses in pharmaceutical industry. In this study, a thorough investigation on the cost components and the trend in expenses and operating profit of pharma companies are studied, giving due regard to cost components to have understanding and to find out how they may differ among various types of pharma companies. The data published in the annual reports from 2009 to 2018 of top five pharmaceutical companies based on their annual revenues has been selected for further diagnosis. The analysis reveals that manufacturing costs are different for all the five companies. The study also reveals that there is a considerable indication that the companies are conscious on the much-needed health benefits to the society in the future at an affordable cost

scholarly journals TEORI AKUNTANSI MASA KINI

2013 ◽  
Vol 2 (1) ◽  
Author(s):  
Selmita Paranoan
Keyword(s):  
Human Resources ◽  
Cost Of Capital ◽  
Financial Statements ◽  
Financial Position ◽  
Specific Objective ◽  
Accounting Theory ◽  
Definition Of ◽  
Economic Transaction ◽  
The Cost ◽  
Public Economy

<p><em>This paper presents the development of the scope of accounting theory because of the growing need for information which is presented in the financial statements. The specific objective of financial statements is to present the consolidated financial position, results of operations, and changes in financial position in accordance GAAP (General Accepted Accounting Principles). The definition of this accounting purposes have weaknesses or limitations.Critics of the limitations of conventional accounting that must be done parallelization with practices in the present economic institutions that continue to grow with various forms of economic transaction of business done. This paper discusses the five major developments in accounting theory scope of the present and future who attempt to address the above challenges, namely: Accounting for the public economy (accounting socioeconomic); Accounting for human resources (human resources accounting); Accounting for the cost of capital (accounting for the cost of capital); Report of financial forecasts (reporting of Financial forecasts); The trend towards multi-national accounting. This proves, that the accounting as a science must continue to conduct research and intensive studies to give birth to the theory of accounting in accordance with the needs of economic civilization of the present and future need.</em></p> <p><em> </em></p> <p><strong><em></em></strong><em></em></p>

scholarly journals Association between Accounting Numbers and Value of Food and Beverages Firms in Nigeria

2015 ◽  
Vol 7 (12) ◽  
pp. 245
Author(s):  
Nyor Terzungwe ◽  
Nasiru Rabiu
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Investment Decision ◽  
Market Price ◽  
Accounting Information ◽  
Financial Statements ◽  
Annual Reports ◽  
Market Values ◽  
Food And Beverages ◽  
Accounting Numbers

<p>The degree of statistical relationship between the contents of financial statements and market price of equity is what is termed Value relevance of accounting information. It explains stock market measures using financial information variables and it is a very useful guide to investors in pricing of shares. This study examines the extent of association between accounting information variables of earnings, dividend and book value of equity and market value of listed Food and Beverages firms in Nigeria. Data were collected from the published annual reports of the sampled firms and their market values obtained from the official daily list of the Nigerian Stock Exchange (NSE) over a period of 10 years (2001-2010). Using multivariate regression as technique for data analysis, the study established that accounting information of Food &amp; Beverages companies in Nigeria is value relevant. Accordingly, the study recommends the use of financial statements figures of Food and Beverages firms for investment decision.</p>

A Study of Impact of IFRS Convergence in India on Debt–Equity Components of Financial Statements

2020 ◽  
pp. 097215092091846
Author(s):  
Saumya Jain ◽  
Chandra Prakash Gupta
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Financial Statements ◽  
Annual Reports ◽  
Practical Relevance ◽  
Reporting Standards ◽  
Financial Instruments ◽  
Financial Reporting Standards ◽  
Significant Difference ◽  
The Impact

The present article analyses the impact of International Financial Reporting Standards (IFRS) convergence on financial statements in India. Our focus is on the most significant and challenging standard, that is, IND-AS (financial instruments). Our focus is on the most significant and challenging standard i.e IND-AS(Financial Instruments) and their impact on debt-equity classification brought about by the new standard(s). We analyse the annual reports of 30 listed entities having outstanding preference share capital for the years 2015–2016 and 2016–2017. We redefine the formulae of ratios most commonly used in loan agreements (popularly referred to as ‘debt covenants’) from lenders’ perspective and empirically examine the impact of IFRS convergence on the value of these ratios for the same financial year, that is, 2015–2016. Our results show that there is a significant difference in the value of ratios calculated using newly developed formulae and by applying the old formulae on new data. The study is the first of its kind to empirically examine the impact of IND-AS specifically standard relating to financial instruments on debt ratios in India. Our contribution to the literature is that we not only examine the impact on ratios on transition to IND-AS but also offer a solution as to how the users can mitigate this impact by making adjustments to the debt ratios taking into account the recognition, measurement and presentation changes brought about by IND-AS, so that they can apply our newly developed formulae directly on IND-AS statements and derive the same meaning and interpretation from the ratios as before retaining their practical usage. Thus, our study is of immediate practical relevance to lenders, credit managers and investors aiding their decision making.

scholarly journals Biaya Modal Perusahaan di Indonesia: Tanggung Jawab Sosial dan Tata Kelola Perusahaan

2021 ◽  
Vol 26 (3) ◽  
pp. 361
Author(s):  
A. Firmansyah, A. F. Andriyani, M. L. Mahrus, W. Febrian, P. H. Jadi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Linear Regression Analysis ◽  
Annual Reports ◽  
Corporate Social ◽  
The Cost

The high capital cost indicates the company's risk to obtain funding from debt and equity. The test in this study aims to prove the association between corporate social responsibility and corporate governance with the cost of capital. This study employs data sourced from financial reports and annual reports of the listed companies on the Indonesia Stock Exchange, downloaded from www.idx.co.id. In addition, this research data also employs stock price information sourced from finance.yahoo.com. The sample selection in this study used purposive sampling with a total sample of 260 observations from 65 companies from 2016 to 2019. The hypothesis test in this study used multiple linear regression analysis for panel data. This study concludes that corporate governance is positively associated with the cost of capital, while corporate social responsibility is negatively associated with the cost of capital. This study suggests that Indonesia's capital market supervisory authority needs to improve its governance policies and governance oversight mechanisms for companies listed on the Indonesia Stock Exchange.

scholarly journals CAPITAL STRUCTURE ANALYSIS TO OPTIMIZE THE PROFITABILITY OF MSMES (CASE STUDY ON MSMES HIKMAH IN SIDOARJO, EAST JAVA, INDONESIA)

2019 ◽  
Vol 1 (2) ◽  
pp. 241-250
Author(s):  
Danur Ramadhani ◽  
Agus Sukoco ◽  
Joko Suyono
Keyword(s):  
Capital Structure ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Financial Statements ◽  
Business Owners ◽  
Optimal Capital Structure ◽  
Descriptive Research ◽  
The Cost ◽  
The Capital Structure

This study aims to analyze the capital structure used to optimize profitability in MSME embroidery shoes. This study uses descriptive research with a qualitative approach. The analytical method is used Weighted Average Cost Of Capital (WACC). The techniques of data collection in this research used interview, observation, documentation and triangulation methods. The data that used are financial transaction records and financial statements issued by the company itself. The results showed that UD. Hikmah used the composition of the capital structure consisting of debt of 20%, 80% own capital with a ROE rate of 170%. Optimization results obtained the optimal capital structure composition on the composition of debt 23% and own capital 77%. By generating a level of profitability that can provide a favorable return for business owners, with the highest calculation of ROE that is equal to 173% and the cost of capital to be borne is Rp.18.238.000 every year.

scholarly journals The Innovation-Remuneration Index (IRI). Making pharmaceutical companies report what matters about innovation.

2021 ◽  
Author(s):  
Adam Cohen ◽  
Rebecca Ultee ◽  
Glenn Veldhoven
Keyword(s):  
Pharmaceutical Industry ◽  
Annual Reports ◽  
Pharmaceutical Companies ◽  
Pharmaceutical Firms ◽  
Objective View ◽  
The Cost ◽  
A Company ◽  
What Matters

There is a lack of transparency about the cost of innovation of the pharmaceutical industry even though these costs are claimed to be the major driver for high prices for medicines. This is reflected by annual reports of the major pharmaceutical firms that contain a low number of pages on innovation and its detailed costs, in comparison to pages about remuneration of executives where the detail is excessive. The Innovation/Remuneration Index (IRI) provides an objective view of the transparency priorities of a company and has the potential to shift this focus in favour of transparent and detailed information on the cost of innovation.

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