Equity Value Research Articles

Brand Equity Analysis of Formula Milk for Age 1-3 Years Old at Integrated Healthcare Center Mawar IX Bandung

This study aims to describe the characteristics of consumers in purchasing formula milk products aged 1-3 years and to analyze the brand equity of formula milk aged 1-3 years at Integrated Healthcare Center Mawar IX, RW 9, Cipamokolan Village, Rancasari District, Bandung City. The method used mixed research methods and sample taking used a purposive sampling technique. Based on observations, there were 51 people who suit the criteria. Data were analyzed using descriptive analysis, Cochran test, brand switching pattern matrix, and estimation of market share. Based on research, the characteristics of its consumers are dominated by housewives aged 19-34 years with undergraduate/postgraduate graduates who have children aged 12-23 months with an income of IDR 500,000-5,000,000 and expenditures of IDR 100,000-3,000,000 per month regarding knowledge of child nutrition and obtaining information regarding formula milk from advertisements so that they buy formula milk with a frequency of 1-2 times/month and a small product volume. The results show that Dancow Batita and SGM have a fairly strong brand equity value where these two brands have a brand image with 11 brand associations and a good quality perception. SGM outperformed brand awareness and estimated market share, while Dancow Batita led in brand loyalty. While both brands are equally superior for brand association and perceived quality.

Equity Return Expectations and Portfolios: Evidence from Large Asset Managers

Abstract Collecting large asset managers’ capital market assumptions, we revisit the relationships between subjective equity premium expectations, equity valuations, and financial portfolios. In contrast to the well-documented extrapolative expectations of retail investors, asset managers’ equity premium expectations are countercyclical: they are high (low) when valuations are low (high). We find that asset managers’ portfolios reflect their heterogeneous expectations: allocation funds of asset managers with larger U.S. equity premium expectations invest significantly more in U.S. equities. The sensitivity of portfolios to expectations seems to be muted by investment mandates and is smaller than the one predicted by a standard portfolio choice model.

Investigating the effect of ESG on retail banks’ customer equity

AbstractEnvironmental, social and governance (ESG) has recently been gaining attention as an important consideration for corporate management strategies worldwide. Drawing on the literature surrounding equity theory and customer equity, this study aimed to investigate the influence of ESG on the customer equity of retail banks in Hong Kong. Based on a survey of 300 banking customers, the study found governance initiatives affected customer attitude, while environmental initiatives and social initiatives had no significant effect on it. Customer attitude provided a strong explanation for value equity, brand equity and relationship equity. Value equity and relationship equity had a positive influence on purchase intention, but the relationship between brand equity and purchase intention was insignificant. Customer attitude also mediated the relationship between governance initiatives and customer equity. The findings of this study add value to the understanding of sustainable marketing initiatives and responsible banking. The study contributes to the development of the ESG and customer equity literature and advances the implementation of sustainable banking practices. Practically, the results of this study suggest that banking practitioners should focus on governance initiatives as a primary driver of customer equity and purchase intention. Understanding the role of ESG initiatives in customer attitude and customer equity can help to develop and improve sustainable marketing strategies. Policymakers can use a governance approach to promote sustainable and responsible banking practices.

Can ETFs affect U.S. financial stability? A quantile cointegration analysis

This study evaluates whether exchange traded funds (ETFs) threaten financial market stability by testing two hypotheses relating the growing importance of ETFs to increased market volatility and rising equity valuations. We estimate quantile cointegration models using Standard & Poor's 500 Index (S&P 500) and Chicago Board Options Exchange volatility Index (VIX) data for 1994–2020. We found that an increase in ETFs is positively and significantly related to the long-term valuation of the S&P 500 for quantile values above the median. By contrast, ETFs have only a negative and significant effect on the VIX for quantiles around the median. Ultimately, two novel results were obtained. First, the distortion in the value of the S&P 500 relative to its fundamentals is driven by investor flow into ETFs during a bull market. Second, the impact of equity ETFs on the VIX is only affected when fundamental factors are in play, decreasing it. Therefore, ETFs contribute to forming equity bubbles and support valuation market dynamics. Both regulators and policymakers should consider these conclusions.

Climate change exposure and the value relevance of earnings and book values of equity

Climate change exposure and the value relevance of earnings and book values of equity

A Prospective Competitive Effects Analysis of the AT&T/Time Warner Merger

The vertical merger of AT&T and Time Warner combined one of the largest multiple video program distributors (MVPDs) in the United States with one of the largest providers of pay-TV programming. This study evaluates the potential competitive effects of the transaction by considering changes in the equity valuations of the respective upstream and downstream competitors to the merging parties when news of their proposed merger became public. Consistent with the government’s central theory of harm, it appears that financial markets expected the proposed transaction to result in Time Warner increasing its carriage fees to AT&T’s and DirecTV’s MVPD rivals. Market reactions to the announcement of AT&T’s commitment to enter into binding arbitration when negotiating future carriage fees for Tuner content provide further support for this inference. The results are difficult to rationalize in terms of the various efficiencies and synergies that AT&T claimed it would realize from the merger.

The elusive nature of neutrality: The role of values in couple therapy.

This paper will explore the role of the therapist's values in couple therapy and the challenge these values pose to therapeutic neutrality. It will illuminate how the therapist's values shape what is considered healthy and unhealthy, functional and dysfunctional, and hence frame the problem the couple therapist seeks to treat. Values have particular relevance for couple treatment because the conversations the couple therapist facilitates may unwittingly privilege one partner's needs and wishes over the other's, creating the potential for therapeutic misalliances. This paper will explore common values and their impact on treatment, including the values of monogamy, gender equity, and talk intimacy (emotional expression as a path to intimacy). It will conclude by discussing how couple therapists can avoid partisanship with one partner and maintain a balanced approach in their couple work.

Value relevance of IFRS adoption in the deposit money banks in Nigeria

The prime role of financial statements is to provide information that is useful to existing and potential investors, creditors and other users in making rational investment and similar decisions. Accounting information is a product of Generally Accepted Accounting Principles (GAAP), standards and other institutional settings which are presumed to shape the form and content of the financial reports. Uniform accounting standards assist investors and other market participants to effectively analyze firms from countries with accounting standards that they are familiar with and that IFRSs are adopted in order to achieve information of higher quality than local standards. Value relevance is one of the most common methods of examining the quality of accounting information. Information has the quality of relevance when it influences the economic decisions of users. This study examined value relevance of accounting information after the mandatory IFRSs adoption in the Nigerian Banking industry. Correlational research design using pre-and-post IFRSs regime analysis in a sample of 15 banks for a period of 8 years (2008-2015) was employed. Panel regression technique of data analysis was used and the study found that the adoption of IFRS has significantly improved the value relevance (decision usefulness) of accounting information of deposit money banks in Nigeria during the period covered by the study. However, the results show that the adoption of IFRS improves the value relevance of book values of equity and accounting earnings significantly. We recommend that accounting regulators should investigate the implementation credibility of IFRS in the Nigerian banks.

Inefficient Automation

Abstract How should the government respond to automation? We study this question in a heterogeneous agent model that takes worker displacement seriously. We recognize that displaced workers face two frictions in practice: reallocation is slow and borrowing is limited. We analyze a second best problem where the government can tax automation but lacks redistributive tools to fully alleviate borrowing frictions. The equilibrium is (constrained) inefficient and automation is excessive. Firms do not internalize that automation depresses the income of automated workers early on during the transition, precisely when they become borrowing constrained. The government finds it optimal to slow down automation on efficiency grounds, even when it does not value equity. Quantitatively, the optimal speed of automation is considerably lower than at the laissez-faire. The optimal policy improves efficiency and delivers meaningful welfare gains.

Measuring the Resilience of Rural Banks Against COVID-19 Pandemic: Evidence from West Java, Indonesia

The potential disruption of operational activities in rural banks is linked to MSME actors' inability to repay loans amid the COVID-19 pandemic. The quality of credit and financing provided by these banks is vital in ensuring income and interest continuity, thereby impacting profitability. This study aims to analyze the financial performance dynamics and factors influencing rural banks' profitability in West Java, Indonesia, during COVID-19. The research utilized multiple linear regression with REM estimation. Despite the pandemic's challenges, the ROA, CAR, and equity values of the rural banks met minimum standards, though NPL values exceeded maximum limits. The combined factors of CAR, NPL, equity, net income, and the pandemic collectively influence profitability. Specifically, NPL and the pandemic have significant negative effects, while net income positively impacts profitability. To bolster the resilience of rural banks during crises, suggested policy measures include strengthening capital reserves, tightening credit policies, implementing good governance practices, and enhancing operational cost efficiency.

A Practical Approach to Incorporating ESG Risk Into Equity Valuation

The rise in the capital allocated and investor focus attributed to ESG investing over the past several years has been significant. However, the current literature is not settled regarding the value that ESG risk measures and reporting has on investments and valuations. If this risk is essential, then this risk should be incorporated to account for the presence or the lack of ESG-related risk in valuation models. However, with the relative newness and difficulty of quantifying ESG risk, there is little practical guidance on incorporating this risk into valuation estimates. We provide evidence that ESG-related risk scores are positively associated with the cost of equity. Building upon that result, we operationalize the positive relationship to adjust the cost of equity in free cash flow to equity valuation models. Firms with higher ESG risk have a higher required return, while firms with lower ESG risk have a lower discount rate. Our approach is a practical guide for investors and analysts to account for ESG risk adjustments in valuation models.

Hedging, optimal capital structure and incentives for risk-shifting with preferences for liquidity

We develop a dynamic incomplete-markets model of entrepreneurial firms and demonstrate the implications of preferences for liquidity to entrepreneur's interdependent consumption, portfolio allocation, hedging and financing decisions. The numerical results provide several important implications. Preferences for liquidity reduce hedging demand using risky assets. Besides, the existence of preferences for liquidity decreases the implied equity value and encourages the entrepreneur to issue more debt. Especially, the preferences for liquidity can overturn the risk-shifting incentives of a risk-averse entrepreneur.

The Impact of Social Media Marketing Activities on Value Equity, Brand Equity, and Relationship Equity in Ngarsopura Market of Surakarta

Even in Surakarta, traditional marketplaces continue to play an essential role in the commercial activities that take place in Indonesia. Because of the proliferation of digital technology, the utilization of social media in marketing endeavors has become increasingly important. On the other hand, there is currently a dearth of research about the influence that social media marketing operations have on value equity, brand equity, and customer relationship equity in traditional markets. In the Ngarsopuro Market in Surakarta, the purpose of this study is to provide an explanation of the potential social media marketing actions that have the potential to influence those three equity factors. The strategy known as Partial Least Square (PLS) is utilized as a device for doing data analysis in this study. Through the use of questionnaires, information was gathered from 230 individuals who have visited Ngarsopuro Market and have engaged in the practice of online shopping. A favorable impact on value equity, brand equity, and relationship equity has been observed at Ngarsopuro Market as a result of the utilization of social media, as demonstrated by the findings of the study. In addition, the investigation revealed that value equity, brand equity, and customer relationship equity all play a key role in the decision to make a purchase in the Ngarsopuro Market. Therefore, in order to maintain conventional markets, it is anticipated of sellers that they would make more efficient use of social media, give relevant information about their products, and increase consumer loyalty.

School physical education and disabled students: what about Paralympic sports?

ABSTRACT School physical education (PE) has been presented as a privilege for socially dominant groups recognized by their non-disabled bodies. This study aims to investigate the introduction of a 5-week Paralympic sports unit into the PE curriculum as an educational right for disabled students through its recognition as official knowledge representative of their physical abilities and educational right in PE classes. With a poststructuralist perspective, we reflect on dominant discourses on disability in the school PE field and highlight traditional practices and beliefs that pertain to disabled students. Accordingly, we conducted interviews and focus group discussions with one disabled student, his peers and their PE teacher, allowing for the exploration of values, beliefs and practices associated with disability before and after the Paralympic sports unit. Participants’ comments were subjected to interpretative thematic analysis. Paralympic sports enabled the disabled student to recognize and express their identity by critically questioning PE normative practices. Furthermore, Paralympic sports in the PE curriculum was presented as a strategy to raise non-disabled students’ disability awareness rather than as disabled students’ educational right. Paralympic sports constitutes a crucial aspect of the path towards inclusive education grounded in the values of equity and disability identity recognition.

Proportional clearing mechanisms in financial systems: An axiomatic approach

We address the problem of clearing mutual obligations among agents when a financial network collapses. To do so, we adopt an axiomatic approach and provide the first comprehensive characterization of the rules based on the principle of proportionality, covering the entire domain of financial systems. While a previous attempt by Csóka and Herings (2021) tackled this issue in a context where agents have strictly positive initial endowments, we show that their properties do not fully capture the set of proportional rules when extended to the full financial systems’ domain. To overcome this limitation, we introduce new properties that emphasize the value of equity of the firms in the network. We show that a clearing mechanism satisfies compatibility, limited liability, absolute priority, equity continuity, and non-manipulability by clones if and only if each agent receives a payment proportional to the value of their claims. This characterization holds in the framework studied by Csóka and Herings (2021).

ESG ratings and macroeconomic risks in the Asian emerging stock markets

ABSTRACT We examine how equity returns of ESG-rated firms in the emerging Asian market respond to the impact of macroeconomic shocks. By studying companies across nine emerging Asian countries, we find no evidence of an outperforming pattern in the stock returns of strong ESG-performing firms. However, we observe that strong ESG-performing firms tend to have less volatility in their equity returns, while weak ESG-performing firms exhibit more volatile equity returns. When it comes to the influence of macroeconomic factors on ESG-rated firms, we highlight the significant impact of demand shocks on the stock values of ESG companies, especially in the case of weaker ESG firms. Thus, our findings suggest that in emerging markets, firms with high ESG ratings tend to safeguard their equity prices against demand shocks and fluctuations in equity values, setting them apart from their low ESG-rated counterparts.

Optimizing Financial Performance: A Comprehensive Examination of Economic Value Added (EVA) and Market Value Added (MVA) at Telecommunication Companies in Indonesia

This research aims to determine the factors that influence the financial performance of telecommunications companies in Indonesia using the Economic Value Added (EVA) and Market Value Added (MVA) approaches. The background to this research arises from the need to understand how operational efficiency, financial policy, innovation, market competition, and economic conditions play a role in creating economic value and the market value of equity. Data collected from telecommunications companies during the 2017-2022 period formed the basis of the analysis, and the research methodology involved measuring EVA and MVA and assessing factors that influence financial performance. The results of this research provide in-depth insight into the complexity of the relationships between variables and their implications for the business strategy of telecommunications companies in Indonesia.

Evaluating the Nexus between Macroeconomic Indicators and Stock Market Performance in Nigeria

This study examines the effect of macroeconomic indicators on stock market performance in Nigeria from 1986 to 2022 using time series data analysis. The analysis includes unit root tests, co-integration tests, and error correction model analysis to understand the long-term and short-term dynamics between macroeconomic variables and stock market performance. Various diagnostic tests, such as tests for autocorrelation, multicollinearity, and heteroscedasticity, were conducted to enhance the accuracy of the model. The results indicate a strong positive relationship between stock market performance and lagged values of Gross Domestic Product (GDP) and Inflation Rate (INF) in the long run. Economic growth, as indicated by GDP, and inflation rates play significant roles in driving stock market movements in Nigeria. Conversely, there is a negative relationship between stock market performance and lagged values of equity (EQUI) and interest rate (INTR), suggesting that changes in equity and interest rates may not have a long-term influence on stock market performance. The short-run analysis reveals short-term momentum in stock market performance, with past stock market returns and inflation rates positively affecting current stock market performance. However, variables like GDP, equities, exchange rates, and interest rates do not show significant short-term effects on stock market performance, indicating their impact may be more pronounced in the long run. These findings provide valuable insights for policymakers and investors seeking to understand the relationship between macroeconomic conditions and stock market movements in Nigeria.

The Effect of Profitability, Liquidity and Leverage Ratios on Internet Financial Reporting and Company Size as Moderating Variables During The Covid 19 Pandemic (An Empirical Study on the BEI Various Industries Sub-Sector)

Internet media has become a tool that provides a means for open company financial reporting as information for external parties because openness can reduce the level of information asymmetry that can occur in financial reports, so that it can accelerate company growth. The nature and characteristics of the internet which is easy to spread (pervasiveness), knows no borders (borderlessness), is timely (real time), low cost (low cost), makes disclosing information via the company website easier in finding all the necessary information related to the company, without having to incur high costs, Abdillah (2015). The development of the internet has created a new way of conveying company financial report information, namely using the Internet Financial Repoting (IFR) system, Yuli Kurniawati (2018). Every company has had many improvements in terms of company profits. Profitability is an indicator measuring management performance in managing company assets which can be shown by increasing profits that can be generated by the company. By indicating that the greater the company's profitability value, the company has good performance management. The liquidity ratio is an indicator of the level of a company's ability to pay short-term obligations. If the company is illiquid, there is a tendency for the company to experience bankruptcy. The ratio is prorated using the Current Ratio, which is about the comparison between current assets and current liabilities. The leverage ratio is a ratio that is an indicator of a company's capital structure. A high level of leverage can encourage management to carry out Internet Financial Reporting to take advantage of opportunities for good information from the company. Company size is a description of how big or small a company is, which can be measured by the size of the asset value, total sales, or the market value of the company's equity. Profitability and leverage influence the Internet Financial Report, while liquidity has no influence on the Internet Financial Report. Size can strengthen the influence of leverage on the Internet Financial Report, while size cannot strengthen the influence of profitability and liquidity on the Internet Financial Report

Equity, Empowerment, and Social Justice: Social Entrepreneurship for Formerly Incarcerated Individuals

The high incarceration rate and systemic racism in the United States, along with entrenched social barriers, highlight the need for creative solutions to help formerly incarcerated individuals (FIIs) reintegrate successfully. This paper highlights social entrepreneurial ventures (SEVs) as powerful agents of social change, underscoring the significance of holistic approaches in successful reentry and transformation of FIIs. We delve into the potential of SEVs as catalysts for social justice within the critical HRD (CHRD) framework, examining SEV’s role in advancing learning, challenging power dynamics, empowering marginalized communities, and propelling grassroots-led social change. In doing so, we also emphasize the significance of experiential learning and dialog in cultivating collective knowledge and action within these social movements. We analyze the structural, organizational, and individual factors that demonstrate how HRD and social entrepreneurship complement and broaden modes of engagement. Ultimately, we highlight the promising synergy between SEVs and the CHRD perspective, presenting a transformative approach for both HRD scholars and practitioners and argue that by embracing the values of empowerment, equity, and social justice, HRD can play a pivotal role in fostering more inclusive, equitable, and empowering organizational landscapes.