Financial Value Research Articles

A Financial Analysis and Valuation of Electric Vehicle Companies

This paper examines the electric vehicle (EV) industry, with a particular focus on Tesla, NIO, and BYD. Tesla is a leading player thanks to its efficient operations and diverse product lineup, making it a preferred choice for investors. NIO, despite having a wide range of products, faces profitability challenges, which may discourage investors. BYD impresses with its consistent profitability and significant market share in China. Financial metrics such as net profit margin, operating margin, and asset turnover are analyzed to assess the performance and appeal of each company to investors. Tesla's operational efficiency, demonstrated by its strategically located Superfactories in major markets, reinforces its industry leadership. Its diverse product range and global market reach inspire investor confidence. On the other hand, NIO grapples with negative profit margins and limited production capacity, lessening its appeal to investors. BYD's steady profitability and considerable market share in China enhance investor confidence. Despite intense competition and market volatility, all three companies are poised to capitalize on the growing demand for EVs, driven by global sustainability efforts. In conclusion, Tesla and BYD appear as appealing investment prospects due to their profitability and market dominance, while NIO struggles to attract investors. Tesla's innovative production strategies and extensive market reach place it at the forefront of the EV industry, likely drawing more investors in the future.

Genomic analysis reveals the association of KIT and MITF variants with the white spotting in swamp buffaloes

BackgroundSwamp-type buffaloes with varying degrees of white spotting are found exclusively in Tana Toraja, South Sulawesi, Indonesia, where spotted buffalo bulls are highly valued in accordance with the Torajan customs. The white spotting depigmentation is caused by the absence of melanocytes. However, the genetic variants that cause this phenotype have not been fully characterized. The objective of this study was to identify the genomic regions and variants responsible for this unique coat-color pattern.ResultsGenome-wide association study (GWAS) and selection signature analysis identified MITF as a key gene based on the whole-genome sequencing data of 28 solid and 39 spotted buffaloes, while KIT was also found to be involved in the development of this phenotype by a candidate gene approach. Alternative candidate mutations included, in addition to the previously reported nonsense mutation c.649 C > T (p.Arg217*) and splice donor mutation c.1179 + 2T > A in MITF, a nonsense mutation c.2028T > A (p.Tyr676*) in KIT. All these three mutations were located in the genomic regions that were highly conserved exclusively in Indonesian swamp buffaloes and they accounted largely (95%) for the manifestation of white spotting. Last but not the least, ADAMTS20 and TWIST2 may also contribute to the diversification of this coat-color pattern.ConclusionsThe alternative mutations identified in this study affect, at least partially and independently, the development of melanocytes. The presence and persistence of such mutations may be explained by significant financial and social value of spotted buffaloes used in historical Rambu Solo ceremony in Tana Toraja, Indonesia. Several de novo spontaneous mutations have therefore been favored by traditional breeding for the spotted buffaloes.

Excess goodwill and enterprise litigation risk

Corporate mergers and acquisitions (M&A) are now a common strategic choice for enterprises. As such, goodwill, which is a core asset of M&A activities, is pivotal for financial valuation and accounting. However, the phenomenon of ‘excess goodwill’, resulting from overvaluation due to management overconfidence and performance promises, poses significant risks, including potential financial statement distortions and increased litigation. This study investigates the intrinsic link between excess goodwill and corporate litigation risk by utilising theoretical analyses and empirical tests. By analysing data from A-share listed companies in Shanghai and Shenzhen from 2007 to 2022, we employed the regression residual method to measure excess goodwill and determine its impact on litigation risk through mediating factors such as financing constraints, risk-taking and agency costs. The findings indicate that excess goodwill significantly increases litigation risk, with a more pronounced effect on manufacturing firms and those with low internal control quality. This research provides valuable insights into optimising goodwill accounting treatment and enhancing enterprise risk management practices. The study's implications suggest that stricter internal controls and cautious goodwill valuation practices are essential to mitigate risks, ultimately contributing to the stability of the capital market and the protection of investor interests.

The financial risks from wind turbine failures: a value at risk approach

ABSTRACT This paper models the financial risk associated with the cost of turbine failures over the lifetime of a wind farm. These failures cause significant variation in realized profit on wind generation projects. A model of the fault generating process is presented and industry data is used to parameterize the model. The model is then used to measure the financial risk associated with the wind project. Risks are measured using the financial metrics Value at Risk (VaR) and Conditional VaR (CVaR) metrics. The study shows that the 95% lifetime VaR of a turbine is equivalent to 52% of the initial capital expenditure. However, as the number of turbines in a farm increases, this risk diminishes. These findings have significant implications for small-scale projects, particularly community projects.

A Financial Analysis and Valuation of Coca-Cola Company

A Financial Analysis and Valuation of Coca-Cola Company

ANALYSIS OF THE IMPACT OF MERGERS AND ACQUISITIONS ON THE VALUE OF FINANCIAL SYNERGY

This study analyzes how mergers and acquisitions affect financial synergy in Indonesian public and state-owned companies. Using metrics like profitability, efficiency, liquidity, solvency, and funding capacity, it examines one year before and five years after these transactions, based on data from 84 firms (2005-2015, financial reports spanning 2004-2020). The Wilcoxon signed rank test calculates pre- and post-merger averages. Findings show decreased capital costs (debt, equity, weighted average) but also reduced profitability (ROIC) and efficiency (TAT). Stakeholders should focus on enhancing financial synergy by boosting funding capacity and planning to improve profitability, efficiency, solvency, and liquidity. Future research should specifically measure the incremental financial synergy value post-transaction and the value generated from operational synergy.

Impact of Financial Performance and Economic Value Added (EVA) On Stock Returns before and after Covid-19 Pandemic: A Case Study of Telecommunications Companies Listed on IDX

This research aims to investigate the impact of financial performance and Economic Value Added (EVA) on stock returns of telecommunication companies listed in the Indonesia Stock Exchange before and after the COVID-19 pandemic. Financial performance in this research is proxied by Return on Assets (ROA), Return on Equity (ROE), Price-Earnings Ratio (PER), Debt-to-Equity Ratio (DER), Net Profit Margin (NPM), and Earnings per Share (EPS). The study employs a purposive sampling method and selects 10 companies in the telecommunication sub-sector for analysis. The type of research used is a quantitative research design, including Panel Data regression analysis and the Wilcoxon Signed Ranks Test. The findings of this study show that ROA, ROE, and PER significantly impacted stock returns before COVID-19, however, this impact did not exist after the pandemic; DER, NPM, and EPS consistently affect stock returns both before and after the pandemic; and EVA only becomes significant after the pandemic. Simultaneously, ROA, ROE, PER, DER, NPM, EPS, and EVA influenced stock returns before COVID-19, but they did not have any impact after the pandemic. Despite these individual shifts, there are no significant differences in overall financial performance metrics and stock returns between the before and after COVID-19 periods. Future research should consider additional financial metrics or external factors such as market volatility, inflation rates, or industry-specific variables to provide a more comprehensive understanding of stock return determinants.

Assessing firm performance in digital transformation: a preliminary analysis using financial indicators

PurposeDigital transformation (DT) has great potential to improve operations and stimulate business growth. It has attracted widespread attention from businesses around the world. However, firm performance in DT implementation (DTI) cannot be neglected. This study examines the benefits and costs of DT and its effects on operations and financial performance of DT.Design/methodology/approachBased on the financial report data from S&P 500 firms, we measure the financial performance, productivity and market value of DTI with a baseline in 2020. In addition, we collect secondary data to construct linear regression models for three dummy variables, including DT adopters, first movers and better performers.FindingsEmpirical results demonstrate that digitally transformed firms are positively correlated with business performance, while the performance among first movers has a partially positive impact. DT has also had a significant impact on long-term performance as shown by our long-term observations. Empirical findings indicate that DT has varying impacts on organizational performance in different dimensions and provides DT target-setting guidance to enterprises.Originality/valueThere are no studies so far that could proffer certain evidence to reveal the influence of DTI on firm performance. Such evidence is necessary for managers to convince their investors and stakeholders to believe that DTI can create new revenue for enterprises.

The diffusion of financial technology-enabled innovation in GCC-listed banks and its relationship with profitability and market value

Purpose This study aims to examine the relationship between the diffusion of technology-enabled innovation in financial services (i.e. financial technology [FinTech]) and the financial performance, i.e. profitability and market value of the banks listed in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach An extensive review of the literature was carried out, and a diffusion index of 73 items including was adopted to measure the level of FinTech usage or diffusion for the banks that are listed on the GCC stock exchanges. The study used return on assets (ROA) and Tobin’s Q (TQ) as proxies to measure profitability and market value, respectively. Findings The findings of the empirical results indicate that there is a positive relationship between FinTech implementation and market performance (TQ) in the GCC banks. The results also showed that the highest level of FinTech implementation was 79.7% by United Arab Emirates banks followed by Bahraini banks at 76.7% based on the index developed for this study. Practical implications This study, hence, recommends that policymakers and governments implement supportive policies and initiatives, allowing consumers to embrace technology as part of their way of life. This encourages banks and other organizations to formulate strategies that integrate technology into operations. Originality/value This paper offers new contributions to the GCC literature regarding financial technology and provides recommendations to the GCC financial institutions, financial markets, policymakers and governments.

Defining the Value of Vascular Surgery Service at a Tertiary Academic Medical Center

BackgroundVascular surgeons play a critical role in the functioning of a healthcare system. As a service line, vascular surgery not only performs its own complex operations but also provides support to other surgical specialties by assisting in the management of vascular-related complications. Previous reports have acknowledged the value of consulting vascular surgeons; however, these studies have primarily been limited to single-center series. In this study, we aim to contribute to the existing literature by sharing our experience and highlighting the financial value of consulting vascular surgeons at a large tertiary academic medical center. MethodsInstitutional electronic medical records were retrospectively queried for all operations performed by vascular surgeons from 2020-2022. Two separate procedural groups were identified. The first group comprised all surgeries where vascular surgery was listed as a co-surgeon for other surgical specialties. The second group comprised all surgeries where vascular surgery was the primary surgeon for service-level cases. Service cases were defined as operations resulting directly from (1) iatrogenic complications from other services, (2) consultations for traumatic injury, or (3) primary surgeon for non-vascular cases. The Centers for Medicare and Medicaid Services (CMS) Physician Fee Schedule was used to calculate work relative value units (wRVU) per primary procedure code. ResultsA total of 7821 surgeries were performed with vascular involvement over the study period. Of these, 726 operations (9.3%) were co-surgeon cases requiring intraoperative vascular assistance, from 109 surgeons across all 16 surgical specialties. There was no missing data. The most common specialties requesting vascular assistance included cardiac surgery (n=247, 34.0%), orthopedic surgery (n=152, 20.9%), and neurosurgery (n=131, 18.0%). Total procedural wRVU for co-surgeon cases was 16,220, and total charges exceeded $77.5 million dollars. Vascular surgery served in a primary surgeon role in an additional 154 service-level cases (2.0%) resulting from ten non-surgical services. The most common service-level indication was iatrogenic vascular injury (n=87, 56.4%), and the majority of service-level cases required urgent or emergent surgery (n=123, 79.9%). These procedures generated an additional 2,150 wRVU and $1.1 million dollars in charges for the hospital system. Of all co-surgeon or service-level cases, 19.1% (n=168) occurred after-hours and 10.3% (n=91) occurred on a holiday or weekend. ConclusionVascular surgery is crucial to the operation of all surgical services and many non-surgical service lines within an academic medical center. Apart from providing essential services for primary vascular diseases, the vascular surgery service line offers substantial financial benefits to the healthcare system through its consulting role. A considerable portion of operative consultations are performed under urgent or emergent circumstances, often necessitating surgical intervention outside regular working hours or on holidays/weekends. These findings have significant implications for assessing the value and compensation of vascular surgeons in today's healthcare landscape.

The impact of climate transition risk on firms’ value – evidence from select Indian-listed companies

PurposeTransitioning to a low-carbon economy requires a positive response by society, including business organizations, towards the green concept and also requires the implementation of long-term green strategies. These requirements could impose various transition risks on the sustainable development of the firms; hence, the present study aims to examine the impact of climate transition risk on a firm’s financial performance and market value creation from the Indian perspective.Design/methodology/approachWe have considered the firm-level environmental risk score (ERS) to evaluate the sensitivity of a firm’s profitability (measured by ROA & ROE) and market value (measured by Tobin’s Q) towards the climate transition risk. The present study used multiple regression analysis to examine the impact of climate transition risk on the firm’s financial performance and market value creation, as evidenced by Nifty 50 companies.FindingsThe empirical results suggested that corporate climate transition risks have been positively associated with the firm’s financial performance indicators but negatively impacted the firm’s market value creation in the case of select Indian-listed firms. Hence, our results indicate that with the increase of firm-level climate transition risk, the firm’s financial performance increases but negatively affects the firm’s market value creation. The robustness tests have also confirmed the same results and supported our analysis.Originality/valueThe present paper contributes to the existing literature on climate risks and firms’ performance by providing insights about firms’ sensitivity towards climate transition risk from the Indian perspective.

Organic Waste Processing as Organic Fertilizer and Social Investment Impact of Community Development Program on Prabumulih Waste Bank

The Mobile Waste Bank Program is one of the PT PLN (Persero) UID S2JB TJSL Program’sas an effort to empower and develop community potential, so that there is an increasedincome through productive activities, along utilizing existing resources to makeeconomically valuable and beneficial to the community. The objectives of this article are to:describes the processing of organic waste into compost and ecoenzymes; and analyze theimpact of social investment resulting from the Prabumulih City Mobile Waste Bank programfunded by the PT PLN (Persero) UID S2JB TJSL Program. The research used wasqualitative and quantitative research method. The sampling method in this study was apurposive sampling technique which was carried out on 15 resource persons. All the stagesthat must be passed in this research refer to the six phases of the SRoI analysis study methodin the guidelines issued by the Social Value UK organization, namely: establishing scopeand identifying key stakeholders; mapping outcomes; evidencing outcomes and giving thema value; establishing impact; calculating the SRoI; reporting, using and embedding. Theresults of organic waste processing at BSP are compost and ecoenzymes as an organicfertilizer. Ecoenzyme is also used as ingredients for making environmentally friendlycleaning products such as dishwashing liquid, hand washing, and bodywash. Based on theresults of the SRoI analysis of the Mobile Waste Bank Program in the Prabu Ijo CommunityGroup in Prabumulih City, it shows that the program is worthy to implement. The results ofSRoI analysis provide value of 1.12. The investment input value is IDR 506,000,000, for oneyear calculation has produced a social benefit achievement value that is equivalent of IDR568,538,142 financial value. It is necessary to increase the portion of impact that is greaterrelated to economic activities and business development impact.

A Financial Analysis and Valuation on Disney

This paper focuses on a specific analysis of the corresponding situation of Disney. It introduces the development of Disney as a whole and lists three companies in different industries in the market that compete with Disney in different aspects, namely Netflix, Comcast and Mattel. By collecting and analyzing the corresponding data, the four companies are specifically compared in terms of liquidity, repayment ability and profitability respectively. The result is that Disney's profitability is slightly weaker than that of the other three companies, which may be due to the fact that Disney has a large investment in streaming media, but not resulting in a return that matches it. This paper also analyses Disney's stock market performance in relation to its competitors and shows that although Disney stock is overvalued at this stage, the NTM P/E ratios show that it will improve in the next period. This paper also analyses and summarizes Disney's strategy and risk profile and makes some predictions for the future. This paper believes that in the future Disney will have a better growth and also a better experience for the consumers.

Mergers and acquisitions with private equity intermediation

We develop a search model of mergers and acquisitions (M&A), intermediated by private equity (PE) funds which may face pressure to sell. The selling pressure leads to the development of a secondary buyout (SBO) market, enabling PE funds to bail each other out. Interestingly, an increase in the number of PE funds can improve each fund’s value, because the enhanced benefits of SBOs can prevail over the reduction in value from narrower buy-sell spreads due to more intense competition. We calibrate the model using data for the US middle market and find that PE funds could lose 64% of their valuation without SBOs. Moreover, the increase in the number of funds from 2000 to 2017 contributes to a 48% increase in fund valuation due to the complementarity among funds. Nevertheless, our model predicts that this mechanism might have peaked in 2021, and more PE funds could decrease their value.

Assessing the Financial Health of the Company and its Relationship to its Market Value Added: Evidence from Industrial Companies Listed on the Amman Stock Exchange for the Period (2013-2021)

Purpose: The research aimed to analyze the relationship between the financial health of the company and the market value added assuming a significant correlation between the two variables. Methodology: Financial health was measured based on the Z-Score model while the market value added (MVA) was measured based on the capital invested in the company and the market value of the company. The sample of the study consisted of (8) industrial companies listed on the Amman Stock Exchange for the period (2013-2021). The principal data utilized in the analysis came from the balance sheets and profit and loss reports that were available on the official websites of the research sample companies. Findings: It was revealed through the analysis of the two variables that the company (APOT) shows higher financial health and market value added than the rest of the companies, followed by a number of companies in the research sample that had good financial health and market value added. Results of the analysis of the relationship between the two variables showed a significant positive relationship between the financial health of the company and the market value added, meaning that the better the financial health of the company, the more its market value increases and thus wealth is added to the owners. Unique Contribution to Theory, Practice and Policy: The results of this work can be used to improve the financial performance of companies, which calls for regular evaluation of the financial situation, identification of strengths and weaknesses in one's financial position, and an effort to mitigate risks and correct any shortcomings prior to their representation in the financial statements, The firm must also follow a strong financial strategy to achieve success and sustainability in the financial market.

Value relevance of fair value hierarchy

Implementing accounting standard 68 (PSAK 68) adopted by IFRS 13 has brought changes in reflecting the market value previously explained by earnings per share and book value. This study investigates the relevance of fair value estimates as measured by the beta coefficient in firms in the financial industry. Specifically, the study focuses on whether the hierarchy of fair value financial liabilities and assets of the firms can affect the market value. This is quantitative research using archival methods. Sampling used a purposive sampling technique with a sample of 240 firm-years. The results showed that financial assets for level 2 (inputs other than quoted prices that were observable directly or indirectly) and level 3 (unobservable inputs generated by entities) positively had value relevance. All three hierarchy fair values of financial liabilities fair value negatively had value-relevance. These results indicate that investors pay higher financial assets for levels 2 and 3 than level 1. Meanwhile, the value relevance of financial assets and liabilities, as measured by R-squared, was relevant. This suggests that investors also trust that each hierarchy's fair value affects the market value. The findings of this study have significant implications for the advancement of the clean surplus theory. The theory posits that the company's market value can be explained by the fair value of financial assets using level 2 and level 3 as well as level 1, level 2, and level 3 financial liabilities.

Using the Theory of Perceived Value to Determine the Willingness to Consume Foods from a Healthy Brand: The Role of Health Consciousness.

Eating low amounts of healthy foods leads to high rates of diet-related diseases. How can we control and reduce the increase in these diseases? One of the recommendations is to improve nutritional competence, which means greater health consciousness. The objective of the present study is to determine the influence of health consciousness on the dimensions of perceived value and their impact on the willingness to consume foods from a healthy brand. Through a non-experimental, cross-sectional, and explanatory study, the responses of 518 participants (men and women) who confirmed being consumers of the healthy brands of food were analyzed. The study included adults aged from 18 to 58 years recruited using non-probability sampling. Data was collected using a self-report form and statistically analyzed using Smart PLS. The findings support that health awareness positively and significantly influences perceived quality value, perceived financial value, perceived social value, and perceived emotional value; contrary to this, it was detected that the perceived financial value does not influence the willingness to consume foods from healthy brands. This study contributes significantly to health science by showing how the theory of perceived value predicts the intention to consume healthy brands, with health consciousness intervening in this prediction. Therefore, it is concluded that the study population that consumes healthy foods has experienced the positive impact of perceived value and reports that the factors that comprise it influence their intention to consume healthy foods.

The Financial Value of a California Post-Secondary Education

Earning a post-secondary degree involves paying for tuition, fees, books, supplies, and living costs. While in school, students forgo full-time job earnings, and after earning a degree they may have student loans to pay for many years. This study examines 305 California major/school combinations to identify the remaining value after paying the costs of earning a post-secondary degree - the Education Value above and beyond what the average person earns with a high school diploma. We find the best combination delivers an additional $3,713,267 in value across a lifetime, and the least value-added bachelor’s degree combination still delivers $656,100. All combinations are investments in human capital that outperform the long-term average of the U.S. stock market and may be the best investment many people ever make.

Analysis of Innovation and Technology in Banking

As proven by both private and public banks, IT-enabled innovation has had a substantial influence on a range of industries, including banking. These financial institutions value innovation and have achieved success as a consequence of technical breakthroughs. The increased competitiveness has compelled all players to act more rapidly. As a result, public sector banks have experienced substantial transformations, and consumers are now confronted with a slew of new options. These banks, which previously depended on traditional methods, are now proactively getting out to the public through billboards, FM radio, and other media outlets. In addition, endorsements from famous people are becoming more common in government entities. The widespread usage of basic banking processes has increased banks' need to innovate. Client satisfaction increases as a consequence in both public and private banks. The study's purpose is to investigate how new technology affects customer satisfaction in Bhopal's public and commercial banks. Customer data obtained from these banks was reviewed, with substantial results. In terms of innovative successes, private banks outscored state banks, according to the poll. Rising banking rivalry is widely considered to have had an immediate influence on how financial institutions prioritize customer-oriented operations and define company goals. Considering the significance of technology and innovation in the modern economy for strategic management, business development, and economic success, new approaches to understanding the relationship among technological innovation and financial services are critical. These unique strategies are required for gaining an advantage over the competition. With this in mind, the goal of this study is to investigate the basic implications of technological innovation on financial services at the bank's location level, specifically through an examination of customer-facing staff input. According to the findings, information and communication technology is critical to the sector's performance. The paper also examines the empirical study's practical implications, strengths, and limitations.

The Influence Of CSR and Profitability On Financial Performance and Company Value

The Influence Of CSR and Profitability On Financial Performance and Company Value