Firm Value Research Articles

Climate-Related Regulations and Financial Markets: A Meta-Analytic Literature Review

Countries are confronting climate change using climate-related regulations that require firms and investors to disclose their green strategies and activities. Using the Meta-Analysis Structural Equation Modeling (MASEM) technique, this study evaluates the relationship between climate-related regulations and financial markets. The meta-regression analysis is conducted based on the outcomes of 52 empirical studies screened from 143 relevant articles. The results show the predictive power of the climate-related disclosure (CRD) laws and environmental regulations (ERs) on financial performance across all studies. ERs create mixed impacts on the equity market and support the debt market. Firm value is affected by ERs either negatively or positively. Methodologies and risk-related factors (market, industry, and firm risks) are important in explaining the relationships between ER/CRD and financial performance. The more developed the market, the less the impact of ERs and CRD on the equity market. Considering industry risk is recommended because different industries are exposed to changes in policies differently. The ER/CRD–firm value relationship is affected by all market, industry, and firm risks. The downside effect of mandatory CRD on the equity market suggests that policy makers, firms, and investors should be cautious in passing a new CRD regulation for transformation towards a sustainable economy.

Pengaruh Kepemilikan Institusional, Profitabilitas dan Tingkat Volatilitas Saham terhadap Nilai Perusahaan

This research aims to determine and analyze the influence of institutional ownership, profitability and stock volatility on company value. The study was conducted on companies indexed by the Kompas 100 shares for 2018 - 2023. The sample size was set at 26 companies with observation data from 2018 to 2023. The type of data used was secondary data in the form of panel data. The data analysis technique used is multiple linear regression with the Eviews application. The results of this research show that, 1) Institutional ownership has a stable trend, while profitability, the level of share volatility and company value, has a decreasing trend; 2) Institutional ownership, profitability and stock volatility simultaneously influence company value; 3) Institutional ownership partially has a positive but not significant effect on firm value; 4) Profitability partially has a negative and significant effect on company value; 5) The level of share volatility partially has a positive and significant effect on company value

Are state-owned enterprises more responsible for carbon neutrality? Evidence from stock market reactions to China’s commitment to carbon neutrality

This study investigates whether state-owned enterprises (SOEs) are more responsible for carbon neutrality in the context of a country that produces the most carbon dioxide. It examines listed firms’ market reactions to carbon neutrality commitment for China that was announced first time on 22 September 2020. Using the event study method and based on 2,792 listed firms, we find that overall market reactions to the carbon neutrality commitment is significantly negative, suggesting that firms are expected to exert genuine efforts towards attaining the national goal of carbon neutrality. Furthermore, our results indicate that SOEs encounter more substantial negative market reactions compared to non-SOEs, indicative of higher expectations placed on them for realizing the carbon neutrality commitment. Further analysis reveals that negative market reactions are particularly pronounced for central SOEs as opposed to local SOEs, as the former are perceived to bear a heavier responsibility in achieving national goals. Additionally, SOEs with higher corporate social responsibility scores experience stronger negative market reactions in comparison to those with lower scores. Further analysis based on a difference-in-differences method and a firm-year sample shows that SOEs reduce firm value and carbon emissions intensity more than non-SOEs after the carbon neutrality commitment. Overall, our study supports the argument that SOEs take more responsibility than non-SOEs in achieving carbon neutrality.

Biofortification in garden peas through multi-micronutrient formulations

Soil micronutrient deficiencies lead to crops with low essential element concentrations, affecting human health through micronutrient malnutrition. Effective practices, like foliar nutrient application, improve crop quality and reduce malnutrition. The garden pea (Pisum sativum L. var. hortense) is cultivated worldwide for its nutritional value and such nutrient-rich crops, through agronomic biofortification, offer a sustainable solution to global health issues by addressing micronutrient deficiencies. Four liquid micronutrient formulations [Treatment 1 (T1), Treatment 2 (T2), Treatment 3 (T3), and Treatment 4 (T4)] were prepared using either water or vermiwash as a carrier, with variations that included the presence or absence of plant growth regulators (GA3 + NAA)] and evaluated along with commercially available formulations [Arka Vegetable Special (T5) and ProKissan (T6)]. Micronutrient formulations, particularly T3, demonstrated notable effects on various parameters, including plant height, biomass, root characteristics, pod weight, and micronutrient contents in seeds of garden pea var. Kashi Nandini. T3 significantly outperformed other formulations in promoting plant growth, resulting in higher values for plant height, biomass, branches per plant, nodule mass, root biomass, surface area, volume, and density. Yield parameters such as pod length, weight, number of pods, and seeds per pod were also positively influenced by micronutrient treatments, with T3 leading to the highest overall yield, with a 24.09 % increase per plant and a 13.39 % increase per hectare compared to the control. Additionally, foliar application of micronutrients increased the concentration of copper, zinc, iron, and manganese in seeds, positively impacting seed quality. Quality parameters, including total soluble solids, protein, total phenol, and total flavonoid contents, were significantly improved by micronutrient treatments, with T3 showing the most favorable outcomes. Texture analysis indicated that peas treated with T3 had lower firmness values, suggesting maintained tenderness and sweetness. Correlation analysis revealed strong positive associations between various growth parameters, yield traits, and micronutrient contents. Overall, foliar micronutrient application proved to be a valuable biofortification strategy for enhancing the performance and quality of garden peas.

Firm Value Model in Pharmaceutical Companies

This study intends to investigate and fill the knowledge vacuum among academics about the issue wherein leverage is not given priority as a risk factor in relation to institutional ownership and the availability of firm liquidity. Furthermore, investors in the capital market do not perceive leverage to be a major factor. This study uses a quantitative methodology, focusing on chemical businesses listed on the Indonesia Stock Exchange (IDX) over a ten-year period. It does this by using a multiple regression analysis method using panel data. Five companies were chosen through the use of a purposive sampling strategy. Through the use of leverage as an intervening variable, the study aims to maximize Firm Value. Two research models are combined into one, with each passing through different phases of testing for model selection, such as the Lagrange Multiplier, Hausman, and Chow tests. The results of the first model show that while liquidity affects leverage, ownership structure has no effect on it. In the second model, liquidity successfully explains the relationship between ownership structure and firm value. Furthermore, the impact on firm value is not mediated by leverage as an intervening variable. It is expected that these results will function as a roadmap for publicly traded corporations seeking to increase their Firm Value

The Influence of Company Growth, Funding Decisions, and Dividend Policy on Firm Value

There was a decline in the company's growth and value. Corporate growth and corporate value. It's a phenomenon on the financing decision that's undergoing an increase but not at the expense of the company's value. Other phenomena in the food and beverage sector companies listed in the EIB showed fluctuations in the dividend policy while the company's value fell. It's becoming a major issue in this research. The purpose of this research is to find out whether there is an influence of Corporate Growth, Financing Decisions and Dividend Policy on Corporate Value on Food and Beverage Manufacturing Companies Period 2017-2021. The analytical method used is a Time Series and Cross Section analysis by comparing the Company's Growth Rate, Financing Decisions and Dividend Policy to the Company Value with the previous year, and comparing it with the Food and Beverage Sector Manufacturing Company Values Period 2017-2021 that included the criteria in the Objective Sampling. Partially, Corporate Growth has no influence and is not significant to the Corporate Value. The Financing Decision has a significant negative impact on the Company's Value. Dividend policy has no influence or significance on the Company's Value. Simultaneously there is an influence between Corporate Growth, Financing Decisions and Dividend Policy on Corporate Value in Food and Beverage Manufacturing Companies Period 2017-2021.

The Mediating Role of Investment Efficiency in the Relationship between Managerial Ability and Firm Value.

The Mediating Role of Investment Efficiency in the Relationship between Managerial Ability and Firm Value.

An Analysis of the Influence of Liquidity Ratios, Stock Prices, Profitability, and Capital Structure on Earnings Growth as an Intervening Variable

Investment in the food and beverage (F&B) sector has become increasingly popular. This study analyzes the impact of financial ratios on the firm value of F&B companies listed on the IDX during the 2019-2023 period. The results show that the liquidity ratio (X1) and capital structure (X3) significantly influence firm value (Y) through the mediation of company growth (Z). Conversely, stock price profitability (X2) does not significantly impact firm value (Y) through the mediation of earnings growth (Z). These findings suggest that investors should consider these ratios when making investment decisions, as they can optimize their portfolios and achieve long-term financial goals. This research contributes to the financial literature by providing empirical evidence on the factors affecting firm value in the F&B sector in Indonesia. Additionally, intelligent investing can yield optimal financial returns for investors.

Pengaruh Leverage dan Profitabilitas terhadap Nilai Perusahaan pada Perusahaan di Sektor Pertanian yang Terdaftar di Bei Periode 2019-2023

The purpose of this study was to determine how much leverage and profitability affect firm value in companies in the agricultural sector listed on the Indonesia stock exchange for the 2019-2023 period. This type of research uses quantitative research and data sources using secondary data which is explanatory research, and the population of this study is agricultural sector companies in 2019-2023. The sampling technique used purposive sampling method and the data collection technique used documentation and literature study methods. The data analysis technique used is quantitative analysis, classical assumption test, normality test, heteroscedasticity test, multicollinearity test, autocorrelation test, multiple linear regression, multiple correlation, determination test, t test and f test. The results of this study indicate that leverage has a significant effect on firm value, profitability has no significant effect on firm value, and simultaneously leverage and profitability affect firm value.

Analysis of the effect of Dividend policy, Debt Policy on Firm Value with Profitabilits as an Innterveneing Variable in Manufacturing Companies Listed on the Indonesia Stock Exchange for the period 2018-2022

The study is entitled “The Effect of Dividend Policy, Debt Policy on Firm Value with Profitability as an Intervening Variable in Manufacturing Companies listed on the Indonesian Stock Exchange 2018-2022 Period”. With the aim of knowing the results of the analysis of the effect of dividend policy (DPR) on firm value (PBV), to find out the results of the analysis of the effect of debt policy (DER) on firm value (PBV), to find out the results of the analysis of the effect of profitability (ROA) on firm value (PBV). ), to find out the results of the analysis of the effect of dividend policy (DPR) on profitability (ROA), to find out the results of the analysis of the effect of debt policy (DER) on profitability (ROA) in Manufacturing Companies listed on the Indonesia Stock Exchange in 2018-2022. And to prove the results of the analysis of the influence of dividend policy (DPR), debt policy (DER) on company value (PBV) with profitability (ROA) as an intervening variable. Sample selection used a purposive sampling technique using certain criteria so that 46 samples were obtained that met the criteria. Data analysis uses multiple linear regression and path analysis. The research results show that dividend policy influences company value, debt policy influences company value, profitability influences company value, dividend policy influences profitability, debt policy influences profitability and profitability is able to mediate the relationship between dividend policy and debt policy on company value.

The Effect of Tax Planning and Leverage on Firm Value with Firm Size as a Moderating Variable

This study aims to examine the influence of tax planning and leverage on firm value using firm size as a moderating variable. The model employed in this study is a descriptive quantitative research design using secondary data. The population in this study includes consumer goods sector companies listed on the Indonesia Stock Exchange from 2018-2023. The sample selection process used a purposive sampling method, resulting in 156 observations from 26 companies selected as samples. Hypothesis testing is conducted using a moderation analysis model. The results of the study indicate that tax planning affects firm value and leverage affects firm value. Firm size as a moderating variable is capable of moderating the influence of tax planning and leverage on firm value.

SUSTAINABILITY REPORTING AND FIRM VALUE: SYSTEMATIC LITERATURE REVIEW

Sustainability reporting disclosure is a clear indication that a company is striving to meet the needs of stakeholders to enhance firm value. This study is dedicated to mapping the research on the pivotal role of sustainability disclosure in bolstering firm value in Indonesia. The research method employed is a systematic literature review (SLR), utilizing 29 articles from the period 2014-2024. The results reveal a spectrum of relationships between sustainability reporting and firm value. On one end, companies are driven by various motivations to boost investor confidence and firm value, necessitating a balance between economic, social, and environmental performance. On the other end, some companies are hesitant to publish sustainability reports, while others fail to adhere to the standards set by GRI, leading to inconsistent disclosures that do not add value to the company's worth.

A Study of the Impact of ESG on Corporate Performance and Firm Valuation

This study is committed to a thorough examination of the significant effects that environmental, social, and governance (ESG) dimensions have on the worth of businesses. Additionally, obtaining ESG certification holds considerable importance for the valuation of companies. Enterprises certified by the authority ESG can not only prove that they have a high standard and level in ESG, but also improve their brand image and credibility, thus attracting more partners and investors. To grasp the intricacies and significance of this matter fully, it begins with a foundational theoretical approach, delving into the obstacles and dilemmas companies encounter throughout their routine business activities. It also further discusses and studies how ESG performance affects enterprise value. Through the analysis of a large number of data and cases, it is found that those enterprises that actively disclose ESG information can often gain more trust and support from investors, thus improving the market value and position of enterprises. Finally, it finds that although ESG has a positive impact on the stock price of enterprises, it is actually relatively slight, and investors prefer enterprises with better operating conditions in terms of investment choices.

The Impact of Classification Shifting on Firm Value (An Empirical Study)

The Impact of Classification Shifting on Firm Value (An Empirical Study)

The Impact of Foreign Currency Exchange Rate Changes on Firm Value (An Applied Study on Companies Listed on the Egyptian Stock Exchange)

The Impact of Foreign Currency Exchange Rate Changes on Firm Value (An Applied Study on Companies Listed on the Egyptian Stock Exchange)

ESG performance and cost of debt

We analyze China Securities Index Co., Ltd. (CSI) environmental, social and governance (ESG) scoring data, which incorporate Chinese characteristics, to assess the impact of ESG performance on corporate debt financing costs. Our findings indicate that better CSI ESG scores are correlated with lower debt financing costs. Additionally, improvements in local environmental execution enhance the effect of CSI ESG scores on debt financing costs. However, this effect diminishes with increased internal control quality and marketization. Governance has the greatest impact on reducing debt financing costs, followed by social and environmental factors. Superior CSI ESG scores reduce corporate debt financing costs by enhancing debt repayment capacity and reducing information asymmetry. Economic consequence analysis confirms that lower financing costs, driven by improved ESG performance, significantly enhance total factor productivity and firm value. CSI ESG scores also significantly impact bank loans but not corporate bond financing.

A Study of the Impact of Private Equity Funds on the Value of SMEs

Private equity (PE), a type of equity investment in unlisted companies, has gradually become more popular in the domestic market as a result of China's economy's rapid development. According to certain experts, private equity significantly affects businesses. Less research has been done, though, on how private equity funds affect business value. The focus of this article is therefore the impact of PE on the valuation of SMEs. Based on the GEM data from 2019 to 2022, the empirical analysis of the results by means of multi-linear regression model indicates that the value of private equity firms is higher than that of non-private equity investors, and the lower the balance sheet ratio, the higher the return on net assets ratio, or the higher the research and development intensity of the enterprises participated by private equity institutions, the more conducive it is to increase the value of small and medium-sized enterprises.

Does Leverage affect Profitability and Firm Value of Nigerian Firms? A Panel Modeling of Nigerian Banking Industry

Does Leverage affect Profitability and Firm Value of Nigerian Firms? A Panel Modeling of Nigerian Banking Industry

Environmental Social and Governance Impetus and Firm Performance: Assessing the Role of Sustainability on Corporate Success

This study investigates the level and impact of Environmental, Social, and Governance (ESG) reporting among non-financial firms listed on the Pakistan Stock Exchange (PSX), aiming to draw conclusions on ESG reporting levels, its impact on financial performance, and the mediating role of investment rating. The findings indicate that while ESG reporting in Pakistan is increasing, compliance is below 50% for most indicators, with social sustainability averaging 53.36%. Environmental sustainability reporting is associated with improved Return on Assets (ROA) and Tobin's Q, highlighting better asset utilization and market valuation for firms that prioritize environmental disclosures. Similarly, social and governance sustainability reporting positively influence financial performance by enhancing employee productivity, customer loyalty, decision-making, and risk management. A composite ESG index demonstrates a holistic approach to sustainability, benefiting financial performance by improving stakeholder relations and capitalizing on sustainable opportunities. Investment rating mediates the relationship between ESG reporting and financial performance, suggesting that higher ESG disclosures lead to better investment ratings and, consequently, improved financial outcomes. This study aligns with existing literature from developed countries and extends the understanding of ESG reporting's benefits to a developing country context, specifically Pakistan. While ESG reporting is a well-explored area in developed countries, this study adds unique value by concentrating on non-financial firms listed on the Pakistan Stock Exchange (PSX), contributing to a relatively under-researched context in a developing country. Exploration of the mediating role of investment rating is a notable original contribution, revealing how higher ESG disclosures not only directly impact financial outcomes but also lead to improved investment ratings, which in turn enhance financial performance.

Faktor yang Mempengaruhi Nilai Perusahaan dengan Moderasi Ukuran Perusahaan pada Sektor Healthcare di Bursa Efek Indonesia

Company value is used to assess the importance of a company from the point of view of various parties, such as investors who are concerned with the valuation of a company through its share price. The high value of the company shows that the company is in a prosperous condition. The purpose of this research is to prove the overall effect of investment opportunity set, capital structure, and tax planning on company value with company size as a moderating variable in healthcare sector companies recorded on the Indonesia Stock Exchange for 2019-2023. The sampling technique in this research uses a purposive sampling technique and uses the Moderated Regression Analysis (MRA) method. The test results show that investment opportunity sets and tax planning have a significant positive contribution to firm value, capital structure has no contribution to firm value. Company size cannot moderate investment opportunity set and capital structure on company value, company size can moderate tax planning to increase company value in healthcare sector companies on the Indonesia Stock Exchange 2019-2023.