Effect Of Firm Value Research Articles

PENGARUH PERTUMBUHAN PERUSAHAAN, STRUKTUR MODAL, DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN

The purpose of the research is to obtain empirical evidence about the impact of growth, capital structure and profitability to firm value. The sample in this research is manufacturing company which listed in Indonesia Stock Exchange during the period of 2013–2015. The source of the data of this research was conducted from annual report and sustainability report. This research is using quantitative approach with multiple linear regression analysis method. The result in this research found that growth effect positively to firm value, capital structure effect negatively to firm value and profitability effect positively to firm value.

PENGARUH PERTUMBUHAN PERUSAHAAN, STRUKTUR MODAL, DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN

The purpose of the research is to obtain empirical evidence about the impact of growth, capital structure and profitability to firm value. The sample in this research is manufacturing company which listed in Indonesia Stock Exchange during the period of 2013 –2015. The source of the data of this research was conducted from annual report and sustainability report. This research is using quantitative approach with multiple linear regression analysis method. The result in this research found that growth effect positively to firm value, capital structure effect negatively to firm value and profitability effect positively to firm value.Keyword : Growth, Capital Structur, Profitability, firm value

PENGARUH PROFITABILITAS, PAJAK DAN GROWTH OPPORTUNITY TERHADAP NILAI PERUSAHAAN MELALUI STRUKTUR MODAL SEBAGAI VARIABEL INTERVENING

This study aims to analyze the direct effects on profitability, taxes and growth opportunity on firm value as well as the indirect influence for profitability, tax and growth opportunity to firm value through a capital structure oncompanies and mining companies listed in Indonesia Stock Exchange in 2011-2014 period. The results showed that (i) profitability and growth opportunity ha da positive effect on the capital structure, (ii) taxes ha da negative effect on the capital structure, (iii) profitability and capital structure ha da positive effect on firm value, (iv) taxes and growth opportunity ha dno effect on firm value, (v) profitability and growth opportunity affect ed firm value through a capital structure as an intervening variable.Multinational companies and mining companies in Indonesia Stock Exchange tr ied to use external funding to run their operations to shrink the tax paid in order to obtain large profits and to increase firm value.

Can doing good lead to doing poorly? Firm value implications of CSR in the face of CSI

Corporate social responsibility (CSR) activities enhance firm value via strengthened stakeholder relationships. However, many firms are also involved in corporate social irresponsibility (CSI), which could lead stakeholders to judge CSR actions as insincere, subsequently damaging firm value. This study examines the pivotal role of CSI for CSR’s firm value effects. As an initial finding, the results indicate that CSR’s positive firm value effect is significantly attenuated by the presence of CSI. Offering a more fine-grained analysis, the authors elaborate on the effectiveness of CSR that relates to the same (SD-CSR) or other domains (OD-CSR) as CSI. All else equal, the results indicate that only OD-CSR enhances firm value. Depending upon the CSI context, however, SD-CSR destroys or benefits firm value and OD-CSR is more or less beneficial. By adding new aspects to the discussion about how to align doing good with doing well, the results speak to both theorists and practitioners.

PENGARUH OWNERSHIP STRUCTURE DAN CORPORATE PERFORMANCE TERHADAP FIRM VALUE

Research on the ownership structure (foreign ownership, government ownership and public ownership), corporate performance and firm value has been carried out by researchers, but the results have not been consistent. Thus researchers interested in studying the structure of the ownership (foreign ownership, government ownership and public ownership), corporate performance and firm value. The purpose of this study was to examine and analyze the effect of ownership structure (foreign ownership, government ownership and public ownership) and corporate performance to firm value. The population of this research is the company listed in the Indonesia Stock Exchange that have complete data on foreign ownership, government ownership, public ownership, corporate performance and firm value for six consecutive years (2008-2013). Data type of variable of this research is secondary data obtained with techniques derived from ICMD documentation. Data analysis in this research is using regression. The results showed that foreign ownership, government ownership and public ownership had no effect on firm value and corporate performance positive effect on firm value.

Analisis Ukuran Perusahaan dan Profitabilitas Terhadap Nilai Perusahaan (Studi Empiris Pada Perusahaan Yang Tergolong LQ45 di BEI Periode 2011-2014)

The study aims is to examine and analyze (1) the effect of firm size on firm value, (2) the effect on the profitability of the enterprise value of companies belonging LQ45 in BEI Period 2011-2014. This study population is a company belonging to LQ45 in the 2011-2014 period. The sampling technique used was purposive sampling in order to obtain a total sample of 17 companies. The data used in this study was obtained from the annual financial statements of each company belonging LQ45 published through the official website www.idx.co.id. Data analysis techniques in this study using SEM-based Partial Least Square (PLS). The results showed that (1) the variable firm size of the company and no significant positive effect on firm value, (2) variable profitability and significant positive effect on firm value.

The Effect of Free Cash Flow, R&D and Firm Value

The Effect of Free Cash Flow, R&D and Firm Value

Firm-Value Effects of CSR Disclosure and CSR Performance

We examine in this paper the effects of corporate social responsibility (CSR) disclosure and CSR performance on firm value for S&P 500 firms from 2011 to 2014. We find that CSR disclosure is positively associated with firm value and that the effect of CSR disclosure on firm value is larger than the effect of CSR performance. On average, the overall firm value increase for one index point of Bloomberg's environmental, social, and governance (ESG) Disclosure Score is $260 million, whereas the increase for one index point of the Asset4 ESG Performance Score is below $90 million. Moreover, we find that CSR performance scores related to the environment and governance are positively associated with firm value while the social score is negatively associated. Our results suggest that CSR disclosure mediates CSR performance. Based on prior research, we argue that CSR disclosure tends to be positively biased and too complex to be processed properly. We conclude that a relatively high amount of CSR disclosure is misinterpreted as good CSR performance.

PENGARUH PROFITABILITAS, LEVERAGE DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN

This study was conducted to examine the effect of Profitability, Leverage and Firm Size on Firm Value at the Company's anufacturing base and chemical industry sectors listed in Indonesia Stock Exchange during the years 2013 to 2014. The population in his study amounted to 55 companies manufacturing industrial ector basic and chemical contained in the Indonesia Stock Exchange during 2013 to 2014. Samples were obtained in this study of 52 samples selected by purposive sampling method. After outlier data, which eventually resulted 48 samples to be analyzed and tested. Data were tested using multiple linear regression method. These esults showed that: Provitability significant positive effect on firm value, Leverage not significant effect on firm value and Firm Size positive effect on firm value.

Firm Value Effects of Global, Regional, and Local Brand Divestments in Core and Non‐Core Businesses

In this article, we investigate the effect of brand divestments on firm value. We integrate two common motives for focus‐increasing brand divestitures—global branding and refocusing on core businesses—in a single common framework. In particular, we investigate the effects of divesting local/regional/global brands in core businesses and local/regional/global brands in non‐core businesses on firm value. Analyzing 205 divestment announcements in the global food and beverages industry, we find that, in most cases, brand divestments destroy firm value. Only when firms divest local or regional brands in non‐core businesses is the effect on firm value positive.

Firm Voluntary Measures for Environmental Changes, Eco-Innovations and CSR: Empirical Analysis Based on Data Surveys

Despite the increased strategic importance of environmental innovation on the one hand and corporate social responsibility on the other, there are still few studies that show firm voluntary measures create a primary determinant of environmental changes. First, we clarify the meaning of voluntary measures and CSR. Second, we utilize a survey carried out in Luxemburg on firm CSR practices jointly with the Community Innovation Survey 2008 (CIS 2008). We merge them and show through the estimation of a probit model that CSR is an important factor that explains environmental innovation. Thanks to a question from CIS 2008 we can contribute to the literature by developing a new indicator measuring the scale of the positive impacts on the environment coming from the firm technological innovation capacity. A negative binomial regression enables us to estimate a significant and positive effect of CSR and firm value on this scale.

Fine-Slicing Global Value Chains: A Protection for Proprietary Content (WITHDRAWN)

This study shows that firms adjust the scope of activities entrusted to foreign services production units to adapt their knowledge and content protection strategy to the availability of strong legal protection or internal control mechanisms. We hypothesize and empirically confirm that, when the above mechanisms are not available, firms use the substitute protection mechanism of “fine- slicing” foreign value chain activities to exploit the complementarities that exist between tasks and reduce misappropriation hazard. We also find a positive moderating effect of firm country-specific experience and content value on the propensity to use the fine-slicing mechanism.

Firm-Value Effects of Carbon Emissions and Carbon Disclosures

ABSTRACT Using hand-collected carbon emissions data for 2006 to 2008 that were voluntarily disclosed to the Carbon Disclosure Project by S&P 500 firms, we examine the effects on firm value of carbon emissions and of the act of voluntarily disclosing carbon emissions. Correcting for self-selection bias from managers' decisions to disclose carbon emissions, we find that, on average, for every additional thousand metric tons of carbon emissions, firm value decreases by $212,000, where the median emissions for the disclosing firms in our sample are 1.07 million metric tons. We also examine the firm-value effects of managers' decisions to disclose carbon emissions. We find that the median value of firms that disclose their carbon emissions is about $2.3 billion higher than that of comparable non-disclosing firms. Our results indicate that the markets penalize all firms for their carbon emissions, but a further penalty is imposed on firms that do not disclose emissions information. The results are consistent with the argument that capital markets impound both carbon emissions and the act of voluntary disclosure of this information in firm valuations. JEL Classifications: G14, Q51, M14. Data Availability: Data are available from the sources identified in the study.

Corporate governance and firm value: Evidence from Chinese state-controlled listed firms

The association between corporate governance and firm value has been extensively studied in Chinese listed firms. Based on the characteristics of their ultimate shareholders, Chinese listed firms can be categorised as (1) central state-controlled, (2) local state-controlled or (3) non-state-controlled. Some scholars have described Chinese government policy as ‘zhuada fangxiao’, thus suggesting that the corporate governance mechanisms (CGMs) of central state-controlled listed firms (SCLFs) are better than those of local state-controlled listed firms. Therefore, this paper specifically examines the influence of CGMs on the value of central SCLFs and local SCLFs. Analysis of 2006 firm-year observations from 2007 to 2009 suggests that the aggregate ownership of other large shareholders and the remuneration of top executives exhibit different effects on firm value in central and local SCLFs. The results also provide evidence that there is no endogenous effect of firm value on the ownership of the largest shareholder in central and local SCLFs.

Firm voluntary measures for environmental changes, eco-innovations and CSR: Empirical analysis based on data surveys

There are still few studies that show firm voluntary measures create a primary determinant of environmental changes. We clarify the meaning of voluntary measures and CSR. We utilize a survey carried out in Luxemburg on firm CSR practices jointly with the Community Innovation Survey 2008. We show through the estimation of a probit model that CSR is an important factor explaining environmental innovation. We contribute to the literature by developing a new indicator measuring the scale of the positive impacts on the environment coming from the firm innovation capacity. There is significant and positive effect of CSR and firm value on this scale.

Voluntary Disclosures and the Firm-Value Effects of Carbon Emissions

Using hand-collected carbon emissions data for 2006 to 2008 voluntarily disclosed to the Carbon Disclosure Project by S&P 500 firms, we examine the effects on firm value of carbon emissions and of the act of voluntarily disclosing carbon emissions. Correcting for self-selection bias from managers’ decisions to disclose carbon emissions, we find that, on average, for every additional thousand metric tons of carbon emissions, firm value decreases by $212,000, where the median emissions for the disclosing firms in our sample are 1.07 million metric tons. We also examine the firm-value effects of managers’ decisions to disclose carbon emissions. We find that the median value of firms that disclose their carbon emissions is about $2.3 billion higher than that of comparable nondisclosing firms. Our results indicate that the markets penalize all firms for their carbon emissions, but a further penalty is imposed on firms that do not disclose emissions information. The results are consistent with the argument that capital markets impound both carbon emissions and the act of voluntary disclosure of this information in firm valuations.

Marketing and Firm Value: Metrics, Methods, Findings, and Future Directions

The marketing profession is being challenged to assess and communicate the value created by its actions on shareholder value. These demands create a need to translate marketing resource allocations and their performance consequences into financial and firm value effects. The objective of this article is to integrate the existing knowledge on the impact of marketing on firm value. The authors first frame the important research questions on marketing and firm value and review the important investor response metrics and relevant analytical models as they relate to marketing. Next, they summarize the empirical findings to date on how marketing creates shareholder value, including the impact of brand equity, customer equity, customer satisfaction, research and development and product quality, and specific marketing-mix actions. Then, the authors review emerging findings on biases in investor response to marketing actions. They conclude by formulating an agenda for future research challenges in this emerging area.

Marketing and Firm Value: Metrics, Methods, Findings, and Future Directions

The marketing profession is being challenged to assess and communicate the value created by its actions on shareholder value. These demands create a need to translate marketing resource allocations and their performance consequences into financial and firm value effects. The objective of this paper is to integrate the existing knowledge on the impact of marketing on firm value. We first frame the important research questions on marketing and firm value and review the important investor response metrics and relevant analytical models, as they relate to marketing. We next summarize the empirical findings to date on how marketing creates shareholder value, including the impact of brand equity, customer equity, customer satisfaction, R&D, product quality and specific marketing-mix actions. In addition we review emerging findings on biases in investor response to marketing actions. We conclude by formulating an agenda for future research challenges in this emerging area.

The leverage–value relationship puzzle: An industry effects resolution

Studies of the relationship between leverage and firm value find no general conclusions—firm value effect of leverage seems to depend on firm growth opportunities. However, prior studies fail to control for industry leverage differences and we argue that financial markets examine firm leverage only relative to the leverage in its industry. This paper controls for industry leverage effects in estimating the leverage–value relationship and documents that, unlike prior literature; leverage has a negative relationship with value for both high and low growth US firms.

Geographic Diversification and BHC Return and Risk Performance

We construct a unique dataset from several databases including CRSP, FDIC's Summary of Deposits, and BHC database to investigate the impact of geographic diversification on return, risk, and firm value of large publicly traded BHCs. The deposit dispersion employed here as a measure of geographic diversification has some advantages over those used in the extant literature; it accounts for both the number of locations in which a BHC operates, and the level of activity in each location, it is continuous, and it is limited to a zero-unity range facilitating comparison of geographic diversification across BHCs. Our empirical results show that geographic diversification is associated with a significant decline in BHC total, firm-specific, and systematic market risks, and insignificant return and firm value effects. These results provide a rationale for the BHC diversification, and mergers and acquisitions witnessed in the recent decades, in spite of the zero return and value effects. Moreover, we investigate how the distance between the parent BHC and subsidiary banks affects BHC return, risk, and firm value. We find that BHC-subsidiary distance raises BHC total and firm-specific risks, while leaving the BHC return unaffected and reducing BHC value. The first result supports the internal monitoring hypothesis. The value effect is inconsistent with studies in corporate finance, suggesting that the findings on corporate firms do not necessarily extend to BHCs.