Effect of financial statement ratio analyses on shareholders’ investment decision of quoted commercial banks in Nigeria

It is believed that financial statements are the key documents for any organizations for the investment decision making. Investment decision making depends upon the quality information obtained by the various sources and it is concluded in this research which is based on the findings that financial statement plays a vital role in investment decision making and recommends that no investment decision should be taken without the consideration of a company’s financial statements.

Download Full-text

Does Search-Facilitating Technology Improve the Transparency of Financial Reporting?

The Accounting Review ◽

10.2308/accr.2004.79.3.687 ◽

2004 ◽

Vol 79 (3) ◽

pp. 687-703 ◽

Cited By ~ 291

Author(s):

Frank D. Hodge ◽

Jane Jollineau Kennedy ◽

Laureen A. Maines

Keyword(s):

Search Engine ◽

Financial Reporting ◽

Investment Decision ◽

Investment Decisions ◽

Simultaneous Presentation ◽

Stock Option ◽

Financial Statement ◽

Business Reporting ◽

Option Compensation ◽

Stock Option Compensation

XBRL (eXtensible Business Reporting Language) is an emerging technology that facilitates directed searches and simultaneous presentation of related financial statement and footnote information. We investigate whether using an XBRL-enhanced search engine helps nonprofessional financial statement users acquire and integrate related financial information when making an investment decision. We conduct our investigation in the context of recognition versus disclosure of stock option compensation. Our results reveal that many users do not access the technology, but those who do use it are better able to acquire and integrate information. Specifically, we find that when stock option accounting varies between firms, the use of an XBRL-enhanced search engine increases the likelihood that individuals acquire information about stock option compensation disclosed in the footnotes. We also find that XBRL helps individuals integrate the implications of this information, resulting in different investment decisions between individuals who use and do not use the search engine. Our results suggest that search-facilitating technologies, such as XBRL, aid financial statement users by improving the transparency of firms' financial statement information and managers' choices for reporting that information. Our results also reveal that wide publicity about the benefits of using search-facilitating technology may be needed to induce financial statement users to access the technology.

Download Full-text

PENGARUH INVESTASI DAN PENDANAAN TERHADAP BIAYA MODAL PERUSAHAAN DAN FINANCIAL DISTRESS PERUSAHAAN TAMBANG BATUBARA YANG GO PUBLIC DI INDONESIA

Research Journal of Accounting and Business Management ◽

10.31293/rjabm.v2i1.3478 ◽

2018 ◽

Vol 2 (1) ◽

pp. 81

Author(s):

LCA Robin Jonathan

Keyword(s):

Financial Distress ◽

Capital Investment ◽

Investment Decision ◽

Investment Decisions ◽

Financial Statement ◽

Path Coefficient ◽

Insignificant Effect ◽

Path Diagram ◽

Capital Funding ◽

The Cost

The purpose of this study to analize and determine the effect of investment and funding to the cost of company capital and financial distress. The development of mining and mining service comnaies that go public today reached 42 companies in Indonesia in the period 2013-2015, including examined 23 financial statement of coal mining companies at the same time.Using regression path analysis methode to test the magnitude of the effect indicated by the path coefficient on each path diagram of the causal relationship between investment decision and funding decision as exogenous variable to cost of campany capital and financial distress as endogenous variable.The results showed that investment decisions and funding decisions significantly affect the cost of company capital; Investment decisions have a significant and dominant effect on financial distress and have a negative and insignificant effect on financial distress through the cost of company capital; Funding decisions have a negative and insignificant effect on financial distress and have a significant effect on financial distress through the cost of company capital; The cost of company capital has a negative and insignificant effect on financial distress.

Download Full-text

The Determinants of Bank Profitability Empirical Evidence from Vietnamese Commercial Banks in The Periods Of 2013 To 2018

JOURNAL OF SOCIAL SCIENCE RESEARCH ◽

10.24297/jssr.v15i.8745 ◽

2020 ◽

Vol 15 ◽

pp. 176-184

Author(s):

Dan Ngoc Minh Nguyen ◽

Anh Vu

Keyword(s):

Commercial Banks ◽

Quantitative Methods ◽

Stock Exchange ◽

Balance Sheet ◽

Secondary Data ◽

Analysis Data ◽

Financial Statement ◽

Annual Reports ◽

Panel Model ◽

Data Tables

This research concentrates on the determinants of the profitability of the Vietnamese Commercial Banks. Both internal and external variables regarding the profitability of commercial bank sector will be focused in the analysis. Data over the period of 2013 to 2018 for 29 Vietnamese Commercial Banks[i] is obtained from via Stock Exchange or media. Fixed effect panel model are used to analyze the determinants of the profitability. By using this, we ensure for the effectiveness of the test result in terms of hypothesis along with size in order to get consistent results. The research is based on the scientific approach of quantitative methods to solve the problems posed, practical and effective service for the completion of the research purpose. The secondary data collected from the worldbank.org, vietdata.vn and annual reports (financial statement, balance sheet, etc.) of Vietnamese commercial banks in the 2013-2018 period to create asymmetric data tables will be processed on STATA software.

Download Full-text

Pengaruh Likuiditas, Solvabilitas, dan Profitabilitas terhadap Earning Per Share pada Bank Umum yang Terdaftar di Bursa Efek Indonesia

Indonesian Journal of Economics and Management ◽

10.35313/ijem.v1i1.2419 ◽

2020 ◽

Vol 1 (1) ◽

pp. 72-82

Author(s):

Rizki Muhammad Siddiq ◽

Setiawan Setiawan ◽

Ade Ali Nurdin

Keyword(s):

Commercial Banks ◽

Stock Exchange ◽

Secondary Data ◽

Sampling Technique ◽

Total Sample ◽

Financial Statement ◽

Return On Assets ◽

Panel Data Regression ◽

Analysis Technique ◽

Data Regression

In conducting this research which aims to find out from the influence of Loan to Deposit Ratio (LDR), Debt to Assets Ratio (DAR), and Return on Assets (ROA) to Earning per Share (EPS) in Commercial Banks listed on the IDX period 2008-2017. In this study the type of data used is secondary data, which is from financial statement data that has been published by the website on the Indonesia Stock Exchange and the website of each company that will be examined in the period 2008-2017. The total sample used in this study is four bank companies in the banking sub-sector that have been listed on the Indonesia Stock Exchange from 2008-2017. The technique that will be used in the way of sampling is by purposive sampling technique is a technique of determining samples with certain considerations. The analysis technique in this study uses panel data regression analysis using the Eviews 10 program tool.

Download Full-text

Does Model Reflect on Reality? Exploring Beneish M Score on Selected Private Commercial Banks in Nepal

Journal of Nepalese Business Studies ◽

10.3126/jnbs.v14i1.41485 ◽

2021 ◽

Vol 14 (1) ◽

pp. 18-28

Author(s):

Santosh Gyawali

Keyword(s):

Commercial Banks ◽

Balance Sheet ◽

Threshold Value ◽

Financial Statement ◽

Secondary Source ◽

Manufacturing Companies ◽

Stock Market Return ◽

Income Statement ◽

Score Model ◽

The Given

This research explores if possible fraudulent financial statement is present in private commercial banks in Nepal. This study examines the viability of Beneish M-score model in detecting probable earning manipulation considering the sample of 16 private commercial banks including the joint ventures. The published annual report (income statement and balance sheet) of the year 2018 and 2019 of respective banks are used as a secondary source of information. This research employs Beneish M-score equation and threshold value -2.22 as keys to analysis. The result shows even four banks are engaging in income manipulation, the Beneish model cannot identify the deception on the financial statement. Though the given model is suggested for manufacturing companies, the researcher has used it to explore the Banks—this is the limitation of this research. Further investigation of these tools combined with other fraud detection models is suggested to discover financial manipulation and relationship with the stock market return.

Download Full-text

KEPUTUSAN INVESTASI, KEPUTUSAN PENDANAAN, DAN KEBIJAKAN DIVIDEN TERHADAP NILAI PERUSAHAAN MANUFAKTUR

Jurnal Riset Akuntansi dan Keuangan ◽

10.21460/jrak.2014.101.177 ◽

2014 ◽

Vol 10 (1) ◽

pp. 47

Author(s):

Astuti Yuli Setyani ◽

Ambar Kusuma Astuti

Keyword(s):

Regression Analysis ◽

Capital Market ◽

Firm Value ◽

Sampling Method ◽

Dividend Policy ◽

Investment Decision ◽

Investment Decisions ◽

Financial Statement ◽

Financing Decisions ◽

Decision Variables

The purpose of this study was toexamine the effect of investment decisions, financing decisions and dividend policy on firm value. The sample in this study is a manufacturing company established on criteria. Data were obtained from the Indonesian Capital Market Directory (ICMB) and the manufacturing company's financial statement since the period 2008-2011. Based on purposive sampling method, samples obtained by 158 observations. Regression analysis done based on the results of the data analysis. The hypothesis in this study were tested using multiple regression analysis. This study concludes some of the following: (1) variable dividend policy was not shown to affect the value of the company, (2) variable funding decisions variable shown to affect tthe value of the company,(3) investment decision variables was not shown to affect tthe value of the company. Keywords: investment decisions, financingdecisions, dividend policy, the value ofthe company

Download Full-text

INDICATIONS OF WINDOW DRESSING ON COMMERCIAL BANKS IN INDONESIA

Jurnal Ilmu Manajemen & Ekonomika ◽

10.35384/jime.v8i1.94 ◽

2018 ◽

Vol 8 (1) ◽

pp. 54

Author(s):

Muchlis Dr

Keyword(s):

Commercial Banks ◽

Financial Statement ◽

Temporary Increase ◽

Monthly Data ◽

Window Dressing ◽

Time Deposits ◽

Demand Deposit ◽

Higher Rank

More than often, banks are ranked based on their total assets. The bigger its assets the higher its position in the rank. To maintain its position in a higher rank, a bank may take extra efforts, to maintain its total assets high, whether by increasing its performance or manipulating their financial statement like window dressing. The higher its position in the rank the more likely a bank to perform temporary banking activities at the year end to increase its assets. The examples of the such activities are increasing temporarily customer deposits in the year end. Those temporary activities in are tending toward a window dressing.This paper examines the possibilities of window dressing activities at the year end conducted by high ranked banks by temporarily pushed their assets up through extra efforts in gathering temporary customer deposits at the year end. If those window dressing activities really exist, researchers expect that data will show temporary increase in assets, customer deposits and also cost of funds of high ranked banks in Indonesia. Researcher uses the monthly data and started from January 2006 untill December 2011.This research shows an evidence that bank total assets increase significantly at the year-end and the increase is temporary. Further, the increase in total assets appears to be funded with purchased demand deposit, savings, and time deposits. This research also shows that larger banks are more likely than smaller banks to exhibit window dressing.Keywords: banks, window dressing, asset.

Download Full-text

Audit committees and insider trading at U.S. banks

Corporate Ownership and Control ◽

10.22495/cocv8i2sip2 ◽

2011 ◽

Vol 8 (2, Special issue) ◽

pp. 14-31

Author(s):

Brian Bolton

Keyword(s):

Firm Performance ◽

Insider Trading ◽

Commercial Banks ◽

Audit Committee ◽

Financial Statement ◽

Audit Committees ◽

Loan Loss ◽

Financial Problems ◽

Financial Condition ◽

The Relationship

This paper studies the relationship between insider stock trades by audit committee members and financial concerns at U.S. banks during the 2000s. We initially show that banks with large amounts of discretionary loan loss accruals experience larger stock sales by audit committee members. These stock sales are then associated with banks experiencing subsequent financial problems, measured by firm performance, restatements, and the likelihood of receiving TARP assistance in 2008 and 2009. This suggests that legal insider trading by audit committee members can provide information about a bank’s financial condition and financial statement quality. While this study is focused on commercial banks, the results likely apply to larger samples and to trading by other classes of insiders.

Download Full-text