Higher Stock Price Research Articles

Analisis Pengaruh EPS dan ROA terhadap Harga Saham Perusahaan yang terdaftar di Bursa Efek Indonesia

This study aims to provide empirical evidence about the analysis of the effect of EPS and ROA on stock prices of companies listed on the IDX. The population of this study amounted to 32 companies. The sample of this research is 9 companies listed on the IDX for the period 2016-2020. The method of determining the sample using purposive sampling method. The data used is secondary data collected using the nonparticipant observation method by downloading data from the IBM SPSS 25 website. The results of the partial study for EPS show a significance value of 0.000 < α = 0.05, which means that EPS has a significant influence on stock prices, this proves that the greater the fixed assets covering current liabilities does not cause the stock price to increase. The results of the partial study for ROA show a significance value of 0.228 > α = 0.05, which means that ROA has no significant effect on stock prices, which proves that companies that have high or low Return On Assets (ROA) do not necessarily have high or low stock prices. However, the results of simultaneous research, for the value of EPS and ROA showed a significance value of 0.000 < α = 0.05, which means that EPS and ROA have a significant effect on stock prices. For future research, it is better to add independent variables so that it can be known whether there are other variables that affect firm value.

Pengaruh ROA, Pertumbuhan Penjualan, Likuiditas dan Ukuran Perusahaan terhadap Struktur Modal Perusahaan Manufaktur Sektor Makanan dan Minuman di BEI

Food and beverage companies are industries that compete in the world market and make major contribution to the value of national exports. Companies that have good capital structure have a good reputation and affect the high stock price. This research aimed to find out the effect of ROA, sales growth, liquidity, company size variable to capital structure variable in annual report listed on the Indonesia Stock Exchange year 2017–2019. The population are all food and beverage manufacturing companies listed on the Indonesia Stock Exchange, and obtained samples of amount 14 companies. The type of this research is a quantitative study. The data analysis used several analyzes, namely multiple linear analysis, the coefficient of determination test, the classical assumption test, R2 test, the F test, and the t test. Based on the results of this research, that partially profitability has significant positive effect on capital structure. Sales growth has no significant negative effect on capital structure. Liquidity has no significant negative effect on capital structure. Company size variable has significant positive effect on capital structure. The results of F test show that profitability, sales growth, liquidity, company size have significant positive effect on capital structure.

Feeling in Control: The Relationship Between a CEO’s Childhood Socio-Economic Status (SES) and Duality

Duality is the most direct form of control over firm decision-making by CEOs. Yet, while the downstream firm effects of duality have been studied in detail, why certain CEOs are more likely to assume a dual role remains understudied. I propose childhood socio-economic status (SES) as an important driver of a CEO’s propensity to serve as chair of the board. During their upward social transition, CEOs from a low-SES background develop a heightened internal locus of control (i.e., the belief that they themselves are in control of their lives) and consequently become more likely to seek control over their environment. This will be reflected in a higher probability by low-SES CEOs to assume a dual role compared to their non-low SES counterparts. I expect that this relationship will be weakened by factors that act as indirect forms of control over the firm – higher stock price and organizational slack. Drawing on a dataset of Fortune 100 CEOs from 2000 to 2016 I find results in line with the hypothesized relationships.

IMPLEMENTASI PAKET SHINY PADA PEMODELAN MULTISCALE AUTOREGRESSIVE UNTUK DATA HARGA SAHAM BBRI

Stocks are an investment that attract people because they can earn large profits by having claim rights to the company's income and assets so investors have to observe stock price movements in the future to achieve investment goals. One of the statistical methods for time series data modeling is ARIMA. However, modeling assumptions must be fulfilled to use that method so an alternative model is proposed, namely nonparametric regression model, which has no modeling assumptions requirement. In this study, the nonparametric regression multiscale autoregressive (MAR) with two different filter and decomposition level J are compared to choose the best model and forecast it. The data are closing stock price, high stock price and low stock price of BBRI’s stocks that divided into 2 parts, namely in sample data from March 19, 2020 to February 4, 2021 to form a model and out sample data from February 5, 2021 to March 23, 2021 used for evaluation of model performance based on MAPE values. The chosen best model for each stock price are the MAR model with wavelet haar filter and decomposition level 5 for the closing stock price which produces a MAPE value of 1.194%, the MAR model with wavelet haar filter and decomposition level 5 for the high stock price which produces a MAPE value of 1.283%, and the MAR model with a wavelet haar filter and decomposition level 5 for the low stock price which produces a MAPE value of 1.141%, indicating that the models have excellent forecasting capability. In this study, Graphical User Interface (GUI) using R software with the help of shiny package is also built, making data analyzing easier and generating more interactive display output.

An Empirical Analysis of the Impact of Exchange Rates on Stock Prices

With the deepening of economic openness, the domestic capital market is increasingly linked to the foreign exchange market, and changes in the exchange rate of a country's currency are often accompanied by significant fluctuations in the level of stock prices. This paper selects the panel data of the stock prices of different listed companies and the exchange rate of RMB to SDR from the first quarter of 2017 to the fourth quarter of 2020 to conduct regression analysis and robustness test. The results show that there is a significant negative relationship between exchange rate (under the direct markup method) and stock prices. Compared with stocks with lower stock prices and B shares, stocks with higher stock prices and A shares are more affected by exchange rate changes. Therefore, China should be cautious in the process of promoting capital account opening and deregulation of exchange rate, strengthen the management of fluctuations in the foreign exchange and stock markets to prevent stock market bubbles, and promote the reform of the B-share market to improve the efficiency of corporate financing and make China's financial market more complete.

Fear in the Stock Market: How COVID-19 Affects Preference for High- and Low-Priced Stocks

Does fear create a bias in favor of high-priced stocks? An analysis of the S&P 500 stock prices during the COVID-19 market crash showed that high-priced stocks outperformed low-priced ones (study 1). Experimental data further confirmed that fear induced by thoughts about the pandemic increased individuals’ preference for high-priced stocks when they were forced to choose one stock from a set of alternatives (study 2). Although fear generally decreased the preference for stocks when the market trended downward, this decrease was less for high-priced stocks than for low-priced ones (study 3). Reasons for and implications of this bias are discussed.

Non-GAAP measure disclosure and insider trading incentives in high-tech IPO firms

PurposeThis paper aims to investigate whether the non-generally accepted accounting principles (GAAP) performance measures (NGMs) disclosure by high-tech initial public offering (IPO) firms signal firms’ efforts to maintain relatively high stock price levels before the expiration of the lock-up period to benefit insider selling.Design/methodology/approachThe authors perform ordinary least squares and logit regressions using financial statement data and hand collected data on NGM disclosures for high-tech firms during the IPO process.FindingsThe authors find that the top executives of high-tech IPO firms with NGM disclosures are significantly more likely to sell and sell significantly more insider shares at the lock-up expiration than those of high-tech IPO firms without NGM disclosures. At the same time, while high-tech NGM firms have stock returns similar to their counterparts without NGMs for the period before the lock-up expiration, their stock returns are substantially lower after insider selling following the lock-up expiration.Practical implicationsBy documenting the negative association between NGM disclosures and post-lockup expiration stock performance, the study highlights managerial deliberate optimism about the firm’s prospects which may not materialize. Hence, investors should take the NGM disclosures with a grain of salt.Originality/valueThis paper fills a notable void in the non-GAAP reporting literature by documenting a statistically and economically significant positive association between managerial equity trading incentives and NGM disclosures by high-tech IPO firms.

PERBANDINGAN HARGA SAHAM PT BANK NEGARA INDONESIA (PERSERO) TBK SEBELUM DAN SESUDAH PANDEMI COVID-19 DI INDONESIA

Stock price is a very important factor for see company value, a high stock price in the company can be said that the company is in good condition, on the other hand, if the stock price of a company is falling, it can be said the company is not good which makes the value of the company go down and can cause investors not to buy the campany’s stock. The purpose of this study was to compare the stock price of PT Bank Negara Indonesia (Persero) Tbk before and after the Covid-19 pandemic in Indonesian for a period of 12 months before and 12 months after the Covid-19 pandemic was confirmed in Indonesian, namely on March 2, 2020. The research method used is descriptive method with qualitative research and uses comparative method. The results of the study using the paired sample t-test showed that the average stock price before the Covid-19 pandemic was IDR 8,114.58 and after the Covid-19 pandemic was IDR 5,088.33, this means that there is a difference in the stock price of PT Bank Negara Indonesia, a significat periode of 12 months before and 12 months afrer the Covid-19 pandemic in Indonesian. The conclusion obtained is that there is a negative impact of the Covid-19 pandemic on the stock price of PT Bank Negara Indonesia (Persero) Tbk

Do controlling shareholders share pledging affect goodwill impairment? Evidence from China

PurposeThe purpose of this study is to examine the impact of controlling shareholders’ share pledging on goodwill impairment.Design/methodology/approachThis study empirically investigates the effect of controlling shareholders’ share pledging on both the decision and amount of goodwill impairment for Chinese listed firms from 2007 to 2017.FindingsThis study finds that the proportion of controlling shareholders’ share pledging is negatively related to both impairment decisions and amounts; these negative relationships are intensified when firms face high stock price crash risks. In addition, the empirical results show that firms with larger share pledging are less likely to recognize goodwill impairment or are likely to record relatively smaller impairment amounts when they are followed by fewer financial analysts.Originality/valueMost of the relevant literature has focused on managers’ behaviors toward goodwill impairments, while less attention has been given to goodwill impairments from the perspective of controlling shareholders. In fact, controlling shareholders may have strong incentives to protect their control rights when they exercise disproportionate control rights, especially in China. Given the high ownership concentration, prior studies may not have adequately explained the agency problem of controlling shareholders in goodwill impairment. This study uses share pledging as a case to fill this gap. Specifically, it investigates whether both goodwill impairment decisions and amounts are affected by controlling shareholders’ share pledging.

Capitalism, heal thyself

A paradigm shift is underway. The corporation -- much reviled as an externalizing, short-termist, inward-focused, politically manipulative machine – is undergoing a fundamental change. A real metamorphosis. This is good news. Capitalism has developed mechanisms to start a transformation of the world's economy. Already this is underway. The corporations that undergird Capitalism are beginning to confront the harm they created. Capitalism is in the process of healing itself. There are three powerful forces at work. First, large institutional investors (all of which hold both managed and indexed portfolios) are either focusing on ESG investing in their managed portfolios or using their voting power in their indexed portfolios to demand ESG actions by portfolio companies. Why? These big investors – as they seek better financial returns -- are realizing that portfolio companies that externalize harm ... are not sustainable investments. Second, it has become clear (and is becoming clearer) that corporations have better financial returns when they seek to pursue environmental, social, and governance actions (ESG) – often much better than corporations that continue their delusional thinking that the world is not interconnected, that externalizing harm is a profitable business strategy. All big corporations – motivated to seek profits -- are now pursuing real ESG. Third, there are the (almost miraculous) communication and information advances of the Internet. Investors learn in milliseconds what is happening with companies. And corporations can learn, coordinate, and implement new ESG tactics almost overnight. And there are also powerful feedback loops that only accelerate these phenomena. Companies that infuse real ESG into their operations – not the fake stuff that the financial markets are getting better and better at ferreting out – attract money from the big institutional investors engaged in ESG investing. And with additional capital or a higher stock price, these real ESG companies increase their real ESG operations, attracting further real ESG investing. But there is a timing issue. Just as these developments are happening exponentially, Mother Nature has begun her own feedback loops. For example, the fires in Siberia -- which make the West Coast fires (as devastating as they’ve been) look like a kid playing with matches -- are thawing the tundra and unleashing ungodly amounts of methane. Next year will probably be worse. And this is just one of many feedback loops. It’s sometimes hard to take. Can Capitalism catch up? The race is on, and Capitalism started late and is behind. But Capitalism, unlike Mother Nature, does not work on an annual, solar cycle. It works on at least a quarterly cycle when companies file their financial 10-Qs. And, given the way that financial analysts have every incentive to know as much about public companies as the companies themselves, Capitalism is really working on an almost minute-to-minute cycle. And Capitalism has allies. Regulators around the world are looking at how to make ESG disclosure more useful. The nonprofit sector, including foundations and NGOs, is pressuring the institutional investors and the banks to push even faster both their ESG investing and their ESG engagement. Although motivated to save the planet and serve humanity, the sector is a powerful catalyst for even more focused and data-driven ESG investor and corporate activities. The motive to seek profits and the motive to do good come together! So, as we watch and participate in this race, much is about guessing the future. But we humans don't grasp exponential change very well. Our brains don’t seem well designed to handle it. We are linear thinkers - extrapolate from past, draw a straight line. Some of us notice the tangent - the rate of change at a specific moment. But we can't really imagine the future – our future – is being written by the second derivative. It’s a short, rollicking 13-page read, interspersed with about four pages of graphs and drawings. I’ve tried to keep it simple so everyone can see what’s happening and what we face. And to identify the roles each of us must take on.

Large shareholders’ tunneling and stock price crash risk

ABSTRACT Tunnelling by large shareholders is a problem representative of ownership concentration. Large shareholders may interfere with a firm’s information disclosure to support their tunnelling behaviour, causing a high stock price crash risk. Using listed companies in China from 2001 to 2019 as a sample, we find that more severe tunnelling can lead to a higher risk of stock price crashes. Moreover, we investigate potential factors such as internal control, operational performance, and split-share reforms, that may affect the aforementioned relationship. A high level of internal control and good operational performance will weaken the relationship, and the relationship is stronger before split-share reforms. The findings of this study contribute to a better understanding of the relationship given China’s institutional background and better investor protection.

Demystifying the paradoxical popularity of stock buybacks in a market environment characterised by high stock prices

Since the inception of the Corporation Amendment Act in 2011 to improve Director and Executive remuneration accountability, Australian corporations have been conducting gigantesque stock buyback programs (SBPs) on an unprecedented scale. This paper aims to develop an optimisation model that rationalises the relationship between SBPs and equity incentive plans (EIPs) for a risk-averse employee before quantifying the net effect of SBPs on the EIPs. To incorporate their interdependencies, we model EIPs and SBPs as a system of simultaneous equations and estimate this system using two stage least squares. Consistent with the optimisation model’ predictions, obtained coefficients indicate that managers may be conducting on-market SBPs to increase the value of equity incentive payoffs. Additional path analysis reveals that managers of low-quality earnings firms are likely to conduct SBPs to increase per-share earnings and maximise their equity incentive payoffs, especially during the economic slowdown period where other firm shareholders may be facing a sizable decline in their wealth. These findings provide a deeper understanding of how SBPs may serve as an incentive to reduce agency problems or as a tool of wealth transferring among stakeholders.

Effect of advertising expenditures on analyst coverage: evidence from an emerging market

PurposeThis paper aims to document the relationship between advertising expenditures and analyst coverage in a sample of Indian firms during the period between 2000 and 2019.Design/methodology/approachIn order to test the effect of advertising expenditures on the extent of analyst coverage, the authors estimate various versions of pooled ordinary least squares (OLS) regression. The dependent variable (ANALYST) measures the total number of analysts covering a firm in a given year. The main independent variable of interest in this paper represents the advertising activity. The authors define the extent of advertising activity (ADVERT) as the ratio of total advertising expenditures and total assets.FindingsThe study’s results show that advertising expenditures have a significantly positive impact on the extent of analyst coverage and are robust across various proxies of the key variables and various estimation procedures.Practical implicationsThere are a number of key takeaways from our study. First, firms that expend more resources on advertising are more likely to be followed by analysts which is associated with better performance, lower information asymmetries associated and high advertising expenditures. Second, stock prices with more information embedded in them may signify that these firms receive more attention from investors and have lower information asymmetries. And finally the impact of advertising on the decision of an analyst to cover a firm becomes more pronounced for firms with high stock price synchronicity. All these three main conclusions are giving investors a clear insight on analyst coverage, advertising expenditure and the link between the two.Originality/valueThe results are consistent with the argument that advertising expenditures induces analysts to cover firms because firms with high advertising activities are more likely to have better performance, lower information asymmetries and increased attention from investors. All of these factors are supposed to facilitate the analyst coverage.

The Effect of Total Asset Turnover and Profitability on Firm value with Good Corporate Governance as Moderating Variable in Food and Beverage Subsector Manufacturing Companies Listed on the IDX 2010-2019

The success rate of the company is often associated with stock prices. High stock prices will impact increasing the value of the company and increasing market confidence. This study aims to analyze the effect of total asset turnover and profitability on firm value in food and beverage companies listed on the Indonesia Stock Exchange for the 2010-2019 period. This study will also examine the good corporate governance variable used as a moderating variable in the research model. The population is food and beverage companies listed on the Indonesia Stock Exchange for 2010 – 2019. From this population, 26 selected companies became the research sample, as many as 14 companies. Moreover, the number of observations used were 140 observations. The data type used is secondary data and the data analysis technique used in Panel Data Regression Analysis and Interaction Moderating Test with the help of EViews10 software. The results of this study indicate that the alpha 5% profitability has a positive and significant influence on firm value. Meanwhile, total asset turnover has a positive but not significant effect on firm value. This study also indicates that good corporate governance can strengthen the influence of profitability on firm value. However, good corporate governance cannot moderate the effect of total asset turnover on firm value. Keywords: total asset turnover, profitability, firm value and good corporate governance.

ANALISIS PENGARUH CORPORATE SOCIAL RESPONSIBILITY (CSR) TERHADAP NILAI PERUSAHAAN DENGAN VARIABEL KONTROL LIKUIDITAS, LEVERAGE, UKURAN PERUSAHAAN, DAN PROFITABILITAS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2017 – 2019

Firm value is an important factor for the company, because the firm value is not only a determinant of the condition of the company, but it can also attract investors to invest in the company. High stock prices make the market believe in the company's current performance and also the company's future prospects. This means that company managers must think about the company's image in the eyes of shareholders by implementing corporate social responsibility. Other factors which are the internal characteristics of the company that are able to influence firm value are liquidity, leverage, company size, and profitability. This study aims to analyze the effect of corporate social responsibility on firm value with the control variables of liquidity, leverage, company size, and profitability in manufacturing companies listed on the Indonesia Stock Exchange for the period 2017–2019. This study used purposive sampling technique with 156 observation data using multiple linear regression. The results of this research indicate that corporate social responsibility has no effect on firm value, while the control variables firm size and profitability have an effect on firm value, and liquidity and leverage have no effect on firm value.

The relationship between air pollution, investor attention and stock prices: Evidence from new energy and polluting sectors

To meet its solemn commitments in the area of climate change and environmental protection, China is working to promote the development of green finance, hoping to direct more resources to green sectors such as the new energy industry. Data show that China is among the world leaders in the amount of green bond and green credit issuance, but green companies in China still do not receive enough support from the stock market. The purpose of this article is to identify the factors that affect the stock prices of new energy companies and to provide specific suggestions for improving stock performance, which will help new energy companies obtain finance in the stock market. This paper takes the listed new energy and polluting companies of China's A-share market as research objects and uses the Baidu Index as a proxy for investor attention. A mediating effect model is adopted to investigate the transmission mechanism among air pollution, investor attention and stock prices. The results indicate that air pollution will not directly increase the stock prices of new energy companies, but it will directly reduce the stock prices of polluting companies. Moreover, the mediator between air pollution and stock prices is investor attention because both new energy and polluting enterprises receive more attention on trading days with air pollution, and increased investor attention could translate into higher stock prices. However, the results of the subsample analysis show that when the stock market shows an upward trend or fluctuates frequently, air pollution causes investors to pay less attention to both types of companies, and air pollution does not significantly reduce the stock prices of polluting companies.

Psychological barrier and cross-firm return predictability

We provide a psychological explanation for the delayed price response to news about economically linked firms. We show that the return predictability of economically linked firms depends on the nearness to the 52-week high stock price. The interaction between news about economically linked firms and the nearness to the 52-week high can partially explain the underreaction to news about customers, geographic neighbors, industry peers, or foreign industries. We also find that analysts react to news about economically linked firms but the 52-week high effect reduces such reactions, providing direct evidence that the 52-week high affects the belief-updating process.

Tarred with the Same Brush? Advertising Share of Voice and Stock Price Synchronicity

Using the informative view of advertising as their theoretical lens, the authors propose that advertising provides information to investors in financial markets, analogous to its role for customers in product markets. The authors extend previous marketing–finance research, which has focused on how advertising affects firms’ risk and returns, and investigate a novel outcome variable, stock price synchronicity. Consistent with their proposed theory, the authors find that firms that advertise more relative to competitors have lower stock price synchronicity, implying that these firms’ stock price movements are driven more by information that is specific to the firm rather than general industry- and market-wide trends. The effect of advertising investments on stock price synchronicity is moderated by the information demand versus supply about firms in financial markets given firms’ product characteristics and ownership structure, and the likelihood of spillover effects between product and financial markets given firms’ marketing strategies. The authors illustrate the relevance of their findings for marketing managers through an event study in which they demonstrate that firms with high stock price synchronicity are “tarred with the same brush” and experience negative abnormal returns when competitors have a product recall, whereas firms with low stock price synchronicity are not affected.

Exploring Patent Effects on Higher Stock Price and Stock Return Rate—A Study in China Stock Market

Exploring Patent Effects on Higher Stock Price and Stock Return Rate—A Study in China Stock Market

Are oil-clean energy and high technology stock prices in the same straits? Bubbles speculation and time-varying perspectives

Motivated by the drive to improve the performance and growth of clean energy technology amidst related high-tech innovations, the vulnerability of clean energy and high-tech stock prices to oil shocks is examined, by illustrating the potential bubbles and time-varying interactions among the commodities over the period from January 2004 to December 2017. In this regard, we contribute to the literature in two aspects. First, we analyze an empirically important issue with the SADF (Supremum Augmented Dickey-Fuller) approach for explosive bubbles in oil price, clean energy, and high-tech stock prices. Second, the Markov Chain Monte Carlo (MCMC) approach of the Bayesian time-varying parameter Vector Autoregressions model with stochastic volatility (TVP-SVAR) technique is used to account for time-varying and state dependent interactions between commodities. We found that the time varying behavior of the dependence among clean energy, high technology stocks and oil prices is mainly due to major bubbles identified in the underlying series. We established contrasting evidence between the responses of clean energy and high-tech stocks to oil disruption shocks. Moreover, the stock return volatilities of high technology stocks have no effect on investors’ expectations of clean energy returns across different time horizons. Overall, this study presents significantly relevant policy guideline.