scholarly journals Metal and Mineral Mining Firm’s Equity Valuation in Indonesia Stock Exchange

2019 ◽  
Author(s):  
Marfani Hasan ◽  
Riko Hendrawan
Keyword(s):  
Stock Exchange ◽  
Equity Valuation ◽  
Mineral Mining

scholarly journals Impact of relative and absolute financial risks on share prices: a Zimbabwe Stock Exchange perspective

2020 ◽  
Vol 17 (1) ◽  
pp. 1-14
Author(s):  
Atanas Sixpence ◽  
Olufemi P. Adeyeye ◽  
Rajendra Rajaram
Keyword(s):  
Financial Risk ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Low Risk ◽  
Equity Valuation ◽  
Risk Category ◽  
Financial Risks ◽  
Share Prices ◽  
Equity Ratio ◽  
The Impact

The impact of financial risks on share prices concerns investors, company executives and accounting standards developers. Investors need this information in delineating their equity valuation models while company executives need the information to make appropriate capital structure decisions. Accounting standards developers use this information in their policy to make accounting standards contemporary. The authors examine the link between relative and absolute financial risks and share prices using a dynamic panel of non-financial listed companies on the Zimbabwe Stock Exchange after dollarization. Equity investors incurred losses before dollarization, which prompted this investigation into the sphere of financial risks in order to explain share price movements so that investors can use it to minimize losses in the future. Absolute financial risk is measured by the total debt, while debt/equity ratio measures relative financial risk. Market capitalization as a proxy for equity and debt is measured by total liabilities. An average debt/equity ratio greater or equal to one qualifies a firm into the high-risk category while ratios below one imply low-risk firms. Results from two-step System Generalised Method of Moments (GMM) show negative and significant connection between relative risk and share prices across risk categories. The impact of absolute risk on share prices differs by risk category. Firm managers are advised to keep total liabilities below market capitalization in order to enjoy the benefits of low-risk categorization. Debt ratio is a reasonable indicator of value and investors can use it in equity valuation. Mandatory reporting of debt ratios should be considered by accounting standards developers.

scholarly journals ANALISIS FAKTOR –FAKTOR YANG MEMPENGARUHI KEPUTUSAN INVESTASI PADA PERUSAHAAN PERTAMBANGAN LOGAM DAN MINERAL YANG TERDAFTAR DIBURSA EFEKINDONESIA

2020 ◽  
Vol 3 (2) ◽  
pp. 283-288
Author(s):  
Eko Deswin Miechaels Siringo-Ringo ◽  
Keyword(s):  
Panel Data ◽  
Time Series Data ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Series Data ◽  
Net Income ◽  
Mineral Mining ◽  
Mining Companies ◽  
Inventory Turnover

his study aims to analyze whether Net Profit, Leverage, Liquidity, Inventory Turnover, and Profitability have an influence on investment decisions of metal and mineral mining companies listed on the Indonesia Stock Exchange during 2018 and 2019. The population in this study are metal and mineral mining companies. listed on the Indonesia Stock Exchange, amounting to 11 companies. And 7 metal and mineral mining companies in this study were used as samples. Sources of data used in this study are secondary data, the data used are the financial statements of metal and mineral mining companies sampled obtained through the Indonesia Stock Exchange published on the website www.idx.co.id. The analytical method used in analyzing the data in this study is panel data regression analysis. The sampling method used is the panel data method which is a combination of cross section data and time series data. The independent variables in this study are Net Income, Leverage, Liquidity, Inventory Turnover, Profitability, and thedependent variable namely Investment Decision. The results of this study indicate that Leverage,and Profitabilityhave a positive effect on Investment Decisions,Liquidity, and Inventory Turnover, while Net Income has a negative effect on Investment Decisions.Keywords: Investment Decision, Net Income, Leverage,Liquidity, Inventory Turnover, and Profitability

scholarly journals Earnings persistence, earnings power, and equity valuation in consumer goods firms

2019 ◽  
Vol 5 (1) ◽  
pp. 3-13
Author(s):  
Nurani Fatma ◽  
Widi Hidayat
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Secondary Data ◽  
Negative Influence ◽  
Positive Influence ◽  
Annual Reports ◽  
Equity Valuation ◽  
Earnings Persistence ◽  
Content Type ◽  
Analysis Technique

Purpose The purpose of this paper is to examine the influence of earnings persistence and earnings power on equity valuation. Design/methodology/approach The purposive sampling method was applied to determine the samples of selected 100 firms. This study employed secondary data obtained from the annual reports and financial statements of consumer goods firms listed on the Indonesian Stock Exchange for the period 2010–2014. The analysis technique used a multiple regression analysis. Findings The study result shows that, partially, earnings persistence and earnings power affect equity valuation by investors. Earnings persistence has a negative influence, whereas earnings power has a positive influence on equity valuation. Originality/value This study throws additional lights on equity valuation specific to consumer goods industries.

scholarly journals VALUE RELEVANCE LABA DAN ARUS KAS DENGAN PENDEKATAN PORTFOLIO-RETURN

2006 ◽  
Vol 6 (1) ◽  
pp. 1 ◽  
Author(s):  
Dwi Fitri Puspa
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Listed Companies ◽  
Cash Flows ◽  
Equity Valuation ◽  
Sample Period ◽  
Earnings Information ◽  
Portfolio Return ◽  
Is Value

<p class="Style1"><em>The value relevance literature is related to the usefulness of financial </em><em>statement asan information in equity valuation. This study is conducted </em><em>to measure the value relevance of earnings and cash flows by using the </em><em>portfolio return approach. the study is to examine whether the proportion </em><em>of all information in security returns that are captured by the accounting-</em><em>based measures in earnings information are higher than in cash flows </em><em>information. The sample covers listed companies in Jakarta Stock Exchange in 1991. The number of samples that fulfills the criteria are 79 companies and the sample period was 1996 to 2001. The findings indicate that the value relevance of accounting information in terms of earnings and cash flows is value-relevant. Furthermore the findings show that the value relevance of earnings information is higher than that of cash flows information. The knowledge of the change in earnings (cash flows) earns 45.68% (16.89%) of these returns.</em></p><p class="Style1"><strong><em>Keywords: </em></strong><em>value relevance; portfolio return; earnings; cash flows</em></p>

The Impact of Tax Incentives, Political Costs, Litigation Risk and Equity Valuation on Accounting Conservatism

2021 ◽  
pp. 39-45
Author(s):  
Rahmat Novari ◽  
◽  
Yusnaini Yusnaini ◽  
Luk Luk Fuadah ◽  
◽  
...  
Keyword(s):  
Stock Exchange ◽  
Tax Incentives ◽  
Accounting Conservatism ◽  
Equity Valuation ◽  
Litigation Risk ◽  
Manufacturing Companies ◽  
Case Scenario ◽  
Worst Case ◽  
Political Costs ◽  
The Impact

In Indonesia, as in other countries, according to the requirements of the tax authorities, there is a need for reconciliation to match accounting profit and fiscal profit. Some rules are allowed in accounting standards but not in taxation. In reducing losses, the company must provide evidence of transparent financial statements that prioritize conservatism. Accounting conservatism is a set of bookkeeping guidelines that call for a high degree of verification before a company can make a legal claim to any profit. The general concept is to factor in the worst-case scenario of a firm’s financial future. The authors of this study attempt to assess the level of accounting conservatism based on several factors, namely through tax incentives, political costs, litigation risk, and equity valuation The purpose of this study is the analysis of the impact of tax incentives, political costs, litigation risk, and equity valuation on accounting conservatism. The secondary data used in this study are financial reports and annual reports published on the Indonesia Stock Exchange (IDX, www.idx.co.id) for 2015-2020. The sample of this study is manufacturing companies listed on the Indonesia Stock Exchange. Based on the criteria that have been determined using the purposive sampling method, there are 23 manufacturing companies. The results show that tax incentives and equity valuation have a positive and significant effect on accounting conservatism in manufacturing sector companies in Indonesia. Instead, factors such as political costs and litigation risk negatively affect accounting conservatism.

scholarly journals Is Comprehensive Income Superior To Net Income In Equity Valuation? Evidence From The Capital Market Of Kuwait

2019 ◽  
Vol 35 (4) ◽  
pp. 97-108 ◽  
Author(s):  
Mostafa Elshamy ◽  
Husain Y. Alyousef ◽  
Jassem Al-Mudhaf
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Equity Valuation ◽  
Net Income ◽  
Comprehensive Income ◽  
Valuation Model ◽  
Other Comprehensive Income ◽  
Gains And Losses

The study examines whether comprehensive income numbers reported under International Financial Reporting Standards (IFRS) have value relevance over net income in equity valuation. We use a sample of firms that are listed in Kuwait Stock Exchange from banking, investment, real estate, industrial, basic materials, telecommunications, consumer services, oil & gas and health care sectors during the years 2012-2015.The study applies a methodology used by Collins, Maydew and Weiss (1997) that is based on Ohlson (1995) equity valuation model and Theil (1971) technique to measure and compare the relative and the incremental explanatory power of comprehensive income and net income. The study provides evidence that comprehensive income is not superior to net income in equity valuation. Reporting other comprehensive income gains and losses as elements of the income statement produces a measure of earnings that decreases the explanatory power of the valuation model; decreases the incremental information content of earnings. Other comprehensive income gains and losses when added as an explanatory variable to the valuation model did not enhance significantly its explanatory power.The results we obtained supports the current requirement by the IFRS and US GAAP of deferring other comprehensive gains and losses and contributes to the literature on the value relevance of other comprehensive income gains and losses in emerging capital markets.

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