Firm Value Of Companies Research Articles

Analisis Pengaruh Kebijakan Deviden Terhadap Nilai Perusahaan


 Abstract: This study aims to determine Dividend Policy Influence Analysis, Profitability and Institutional Ownership Structure on Capital Structure and Firm Value in companies listed on the Indonesia Stock Exchange. The sample consisted of 38 companies listed on the stock exchanges of Indonesia from 2010 - 2012. The sampling method used is purposive sampling. Data were analyzed using analysis method fath. The results showed Simultaneously ownership, dividend policy variable dividend policy has contributed to the company's value. Positive t value indicates that the variable dividend policy has a direct correlation with the value of the company.
 Keywords: dividend policy and corporate value.

The effect of financial ratios on the firm value and earnings per share

The present study investigates the effect of financial ratios, operating cash flows and firm size on earnings per share and firm value of companies in IT sector. In the present study, the ratios like Net Profit Margin, Current Ratio, Asset Turnover Ratio, Operating cash Flows and Firm Size are used as the independent variables while the earnings per share and Firm Value are used as the dependent variable. Twelve hypotheses were formulated to investigate the research independent variables with earnings per share and Firm Value and were tested using regression model. The results were consistent with the research results of Legziyan et al. (2011), Martani et al.(2009) and Taani and Banykhaled (2011) but inconsistent with the research results of Martani et al. (2009), Zeynali and Mohammadshilan (2011).

Diversification in Emerging Markets: The Case of Chilean Firms

This study is the first to analyze the effect on firm value of companies when they participate in the ownership of others companies in an emerging South American economy. For a sample of 83 non-financial Chilean companies traded in the 2005-2009 period, we find evidence of a discount for participate in ownership of other companies. However, this discount turns into a premium when participation in the ownership of another company results in control, especially in related sectors. In addition, we find a discount for unrelated corporate diversification similar to that found for other economies.

The Triple Bottom Line Effect on Emerging Market Companies: A Test of Corporate Social Responsibility and Firm Value Relationship

Over the last twenty years, after corporations have historically focused their reporting systems on the provision of financial information needed by managers and shareholders to assess risks and calculate returns, the global awareness of the need to assess the full spectrum of corporate value has grown dramatically. The triple bottom line or total returns on capital—economic, social, or environmental—are now tracked with increasing regularity. Prior research has revealed that a significant pressure of economic changes, an increase in interest in corporate social responsibility (CSR) in recent years, and an acknowledgement of it as an important research topic has brought a bigger and wider effort to build a comprehensive framework. Little empirical research on the effect of corporate social responsibility together with profitability on firm value is done in Southeast Asian countries. This study extends the literature that has been done mostly in western societies by proposing a further linkage between social responsibility, profitability, and firm value, which is rarely investigated in non-western societies. The study analyzed 35 Indonesian manufacturing firms that are listed in Indonesian Stock Exchange (IDX) and report their CSR as the supplement in the annual report. Statistic methods used for testing the hypothesis are T-test and multivariate regression model. The empirical results reveal that CSR has significantly influenced the firm value of Indonesian manufacturing companies. However, one striking finding in this study is the insignificant influence of two measures of profitability, i.e. ROA and ROE, over firm value of those companies have good CSR. These results explicitly show how firms in emerging countries are going to be more concerned with social sustainability and long-run profitability.

The Effects of Cultural Differences on Knowledge Assets and U.S. MNCs' Firm Value: A Three-Valuation Approach

This study examines the effect of cultural differences (CD) between U.S. multinational companies (MNCs) and their foreign subsidiaries on the firm value of the U.S. parent company. The study uses three different valuation models: (1) Tobin's Q; (2) Weighted Cost of Capital (WACC); and (3) Market Value Added (MVA). Analysis using the Tobin's Q model found an inverse relationship between CD and firm value. In contrast, examination of firm value using the WACC and MVA models indicated a direct relationship. These findings suggest that CD has a relationship with the U.S. parent company's firm value, but leave open the question of direction. The analysis reveals that risks or rewards can result from the exchange of knowledge and other intangible assets, and points to Weighted Average Cost of Capital as the optimal model for assessing the effects of cultural distance on firm value. Damodara's (2006) results confirm this apparent lack of consensus. The author found that firm value can be both understated and overstated at the same time depending on the parameters of the different valuation models; these may be narrow or broad, producing different estimates firm value. The present study is similar to a linear programming solution in which a minimization model (Tobin's Q) and maximization model (Market Value Added) are used to formulate the optimal solution point, Weighted Average Cost of Capital (Gartner, & Matousek, 2006). It can be argued that the WACC Model is an optimal solution point, since this approach is by far the most widely used method to compute firm value (Graham & Harvey, 2001) and has a high correlation. Copeland, Koller, and Murrin (2000) applied a WACC-based model to 35 MNCs and found a 0.94 correlation between the model's estimated values and actual market values. Mc Cafferty (1999) surveyed Chief Financial Officers of MNCs and found WACC to be the most popular model among these practitioners for estimating the value of potential acquisitions. Based on these findings and the results of our own research, we deduce that WACC is the best model among the three tested, and we conclude that cultural distance enhances, rather than reducing, the firm value of U.S.-based multinational companies.

The Effects of Cultural Differences on Knowledge Assets and U.S. MNCS' Firm Value

This study examined the effect of cultural differences (CD) between U.S. multinational companies (MNCs) and their foreign subsidiaries on the value of the U.S. parent companies as calculated using Tobin's Q. The findings suggested that CD had an inverse relationship with U.S. parent company firm value, and implied that cultural differences can impede knowledge transfer within the MNC. The results also revealed that: (1) risks or rewards can result from cultural distances in the transfer of knowledge assets, and (2) no conclusions can be drawn as to whether MNC value is enhanced or reduced as a consequence. Knowledge assets (intangible assets) were characterized by Forrester Research (2004) as essential determinates in an assessment of corporate value by investors and analysts. In a dissertation by this study's corresponding author, the impact to firm value of cultural differences (Hofstede, 1980a, 1980b, 1991a, 1991b & 1993) that existed between the foreign subsidiaries and U.S. parent companies was examined. The dissertation looked at the value impact of cultural differences on three different valuation models: (1) Tobin's Q (Anita, Lin, & Pantzalis, 2005); (2) Weighted Cost of Capital (WACC) (Copeland, Koller, & Murin, 2000); and (3) Market Value Added (MVA) (Pratt with Niculita, 2005) to test for consistency in the findings. Under the valuation model Tobin's Q, a discount in firm value of the U.S. parent company was found. In contrast, the WACC and MVA models improved the firm value of the U.S. parent company. These findings implied that CD can influence firm value, but no conclusions can be drawn as to whether it enhanced or reduced firm value of U.S. MNCs. The research implied that cultural differences and knowledge assets may result in risks or rewards to the firm value of U.S. MNCs. The study concluded that other variables could have had an effect on the firm value of the U.S. parent company because the methodology was multiple regression and correlation analysis.