Market-book Ratio Research Articles

PENGARUH KASUS COVID-19, KAPITALISASI PASAR, MARKET BOOK RATIO, DAN PROFITABILITAS TERHADAP STOCK RETURN

The purpose of this study is to analyze the effect of Covid-19 cases, market capitalization, market book ratio, and profitability on daily stock returns in property and real estate and telecommunications sector companies listed in Indonesia Stock Exchange during 2020. This study uses 29 samples, which were selected by purposive sampling method with a total observation of 5,800 data. The research data was collected and calculated using Microsoft Excel 2013 program and then processed with multiple regression analysis using the Eviews 9.0 program. The results of this study prove that the Covid-19 case and the market book ratio have a significant effect on stock returns, while market capitalization and profitability have no significant effect on stock returns. The implication of this research is to become a consideration for investors to see the condition of the company's shares not only from its financial statements, but also to see other factors that can affect the condition of the company's shares. For companies, it is necessary to improve their financial health in order to convince investors to consider investing.

Dampak Konservatisme Auditor terhadap Profit Management dan Opini Going Concern pada Perusahaan Bursa Efek Indonesia

This research aims to determine the effect of the quality of earnings management relationship auditors on Going Concern opinions in companies listed on the IDX for the 2016-2020 period. The quantitative method uses secondary data from independent auditor reports and the annual financial reports of non-manufacturing companies listed on the IDX for the 2016-2020 period. This research used a purposive sampling method with a sample of 690 from 789 companies with a final number of 3171, resulting in observation data. Data was tested using Eviews software. The dependent variable is in the form of Business Continuity Opinion. The independent variable is Profit Management. Moderating variables are Big 4. Control variables are the Market value of company assets, Firm size, Leverage, ROA, Market book ratio, Company age, Sales growth and CFO. The research results show that the Big 4 has a significant relationship with Earnings Management. Then Earnings Management cannot strengthen a significant relationship between the Big 4 and the Going Concern opinion. Thus, testing on 11 variables only creates 1 variable in line with the hypothesis, namely, the Big 4 variables have a significant negative relationship to Earnings Management. Profit Management variable testing has no significant relationship to the Going Concern opinion.

FAKTOR-FAKTOR PENENTU PENILAIAN KEMBALI ASET TETAP UNTUK MENINGKATKAN ARUS KAS DAN POSISI PASAR

This study discusses the implementation of fixed asset revaluation by taking case studies on manufacturing companies listed on the IDX in 2019-2021. Fixed asset revaluation is an action that may be required to describe the actual value of a company's assets accurately. This study aimed to determine the significance of leverage, decrease in operating cash flow, market book ratio, firm size, and intensity of fixed assets on revalued fixed assets. Statistical methods used in this study are descriptive statistics, overall fit model, fit test, Nagel Kerke (R-Square) , and logistic regression. Samples were taken using a purposive sampling technique. The final sample is 193 manufacturing companies listed on IDX in 2019-2021. The results of this study indicated that company size and market book ratios significantly affect fixed asset revaluation. Leverage decreased operating cash flow and fixed asset intensity had no significant effect on the revaluation of fixed assets. Keywords : Cash flow, Company size, Fixed asset intensity , Fixed asset revaluation, Leverage, Market book ratio

The size and market-to-book value in the hospitality industry: international evidence

ABSTRACT The dynamics of market value in the hospitality industry have different aspects as the firms have specific conditions. The study aims to determine the dynamics of the market-to-book value of companies operating in developed and emerging markets. Empirical findings reveal that there is a statistically significant relationship between market-to-book and firm size. The effect of hotel size on the market-to-book ratio is not a linear one. A significant relationship was found between the current value of the market-book ratio and the lag values. When the profitability and dividend payout increase, the market-to-book value increases. It was determined that some factors affecting the firm’s market-to-book value differ according to whether the firm is large-scale or small-scale.

Relevansi Nilai dan Determinan Pengungkapan Modal Intelektual

In recent decades users have emphasized that traditional financial reporting is beginning to lose the
 relevance of the value of earnings and the book value of equity. To cover these weaknesses, investors began to look for other information to make investment decisions. Intellectual capital is included in the top ten in the information needed by information users. Intellectual capital is a potential source for modern companies to gain competitive advantages that are difficult for competitors to imitate and drive business development and success in the future. This study aims to examine the value relevance of disclosure of intellectual capital information on traditional industrial and non-traditional companies, and examine what factors influence companies to disclose intellectual capital.
 Using the purposive judgment sampling method, the company sample consisted of 68 companies from various types of industries that were listed on the Indonesia Stock Exchange in 2014-2018. The results is disclosure of intellectual capital has value relevance in traditional companies, but in non-traditional companies there is not enough evidence found that disclosure of intellectual capital has value relevance. Company age, audit quality, market book ratio, company size, and type of industry have a strong influence on intellectual capital disclosure. Whereas leverage and profitability have no influence on intellectual capital disclosure.
 Keywords : intellectual capital, intellectual capital disclosure, firm age, traditional industry, non- traditional industry

Analisis Pengaruh Mekanisme Corporate Governance Dan Audit Tenure Terhadap Integritas Laporan Keuangan

This research aims to provide empirically the effect of corporate governance mechanism and audit tenure to the integrity of financial statements. The population in this study are property and real estate companies listed on the Indonesia Stock Exchange in 2015-2018. Integrity of financial statements variables are measure by market book ratio using. The sample in this study was determined by purposive sampling method. The type of data used is secondary data obtained from www.idx.co.id as well as company website and other sites related to research. The analytical method used is Multiple Regression Analysis. The results of this study indicates that only audit committees has significant influence to increasing integrity of financial statement. But managerial ownership, independen directors and audit tenure don’t influence on the integrity of financial statement

The effect of firm size, financial ratios and cash flow on stock return

Stocks are kinds of financial instruments with high returns that have high levels of uncertainty. Before decide to invest the investor needs to formulate the expected rate of return. Companies with good financial performance will increase the value of the company so that the company's stock price increases and stock return also increases. The purpose of this research was to determine the effect of Firm Size, Return On Equity, Market Book Ratio, Current Ratio, Cash Flow from Operating Activities, Cash Flow from Investing Activities and Cash Flow from Financing Activities to Stock Return. The object of research used were seven pharmaceutical industry companies listed in BEI period the 2011-2016 with multiple analysis methods. The results of this study indicate that partially Market Book Ratio has a significant positive effect on Stock Return and Cash Flow from Financing Activities has a significant negative effect on Stock Return while Firm Size, Return On Equity, Current Ratio Cash Flow from Operating and  Investing Activities have no significant effect on Stock Return. All variables in this study simultaneously have a significant effect on Stock Return.

El sentimiento de los inversores sobre el tamaño en los múltiplos de valoración europeos

El objetivo de este documento es aportar una nueva perspectiva sobre los factores de control, diferentes a sector o industria, necesarios para el correcto uso de los múltiplos de valoración: MARKET-EBITDA, MARKET-SALES y MARKET-BOOK en el mercado europeo. Analizamos el papel del tamaño y sus interacciones con el resto de las variables, en especial aquellas relativas a rentabilidad y riesgo. Se ha desarrollado un modelo de valoración basado en datos de panel para empresas cotizadas europeas durante el período 2002-2013. Descubrimos que el tamaño incluye aspectos económicos de las empresas, pero también capta otros aspectos diferenciadores, demostrando que los inversores pagan diferente en cada ratio la misma magnitud económica en función del tamaño de las empresas. Por todo ello el tamaño es un factor de control importante, junto al resto de variables, para seleccionar el grupo de comparación y averiguar si una empresa está cara o barata frente a otras. Lo descrito ayuda a comprender por qué las empresas grandes evolucionan de un modo diferente a comparación de otras más pequeñas ante las mismas condiciones económicas o ciclos. El artículo está en consonancia con el marco teórico de valoración por múltiplos, así como con la teoría del efecto tamaño.

A New Keynesian Q theory and the link between inflation and the stock market

I show that when prices are sticky the Q theory of firms' behavior predicts that market-book ratios increase as inflation expectations diminish, holding investment fixed. In the data stock prices and investment correlate poorly precisely when stock prices and inflation move in opposite directions. Therefore, this New Keynesian Q (NKQ) theory can rationalize parsimoniously the time-varying correlation between investment and stock prices, and hence the time-series failure of the benchmark Q theory of investment. To estimate and test the NKQ equation, I rely on weak implications of the theory with strong economic and statistical content by matching the volatility and return forecasting ability of predicted and actual stock prices. Formal tests cannot reject the hypothesis that stock prices and a linear combination of investment and inflation move on the same news about the future. Along many dimensions the simple NKQ equation links well asset prices and macroeconomic variables.

The Peer Group in European Market Multiples: The Problem of Size

The aim of this paper is to bring a new perspective to the role of control factors in MARKET-EBITDA, MARKET-SALES and MARKET-BOOK ratios in the European market, which are different from industry. We analyze the role of size and its interactions with the rest of the variables: profitability, risk, and structural asset factors. For this purpose, we have developed a valuation model using panel data methodology for listed European firms from the period 2002-2013. We found that size includes economic aspects of the companies, but also differential investors’ perceptions about these economic aspects. It makes it a complementary explanation factor on the selection of the peer group with the rest of the variables. These findings help to understand the variation of market ratios and share prices depending on size in different economic conditions or economic cycles. This research is in accordance with the theoretical framework of market ratios and with size effect theory.

Analysing the market–book value relation in large Australian and US firms: implications for fundamental analysis and the market–book ratio

AbstractThis study compares the market–book relation of Australian and US firms using firm‐level dynamic analysis of using annual data for a long‐run period in error correction modelling. This paper contributes to a recent call for alternative ways of estimating Ohlson‐type linear valuation models (Ohlson and Kim, 2015). Log transformations of the data are used in this study to improve the statistical properties of the models. This study contributes to the findings on linear valuation model estimation for long‐run firms. Based on the returns model estimation, we find evidence of a higher level of co‐integration between market and book values for Australian firms.

Growth options and acquisition likelihood in high tech

With high tech firms now representing the majority of acquisitions among all pubic, non-regulated firms, we attempt to determine how a tech firm’s growth options influence its likelihood of being acquired. In particular, we develop a new growth options proxy called Gamma (Γ) to represent the return relative to investment in research and development. We find that Γ is inversely related to the likelihood of being acquired. Robustness tests show that this relationship holds regardless of the subperiod assessed, the size category assessed, whether tech firms are engaged in friendly or hostile acquisitions, the method used to identify tech firms, and whether the R&D definition includes capital expenditures. The relationship is even more pronounced when tech targets have a relatively low valuation (based on the market-book ratio). Furthermore, we find that tech firms with a high Γ are less likely to acquire targets. In general, tech firms with a high Γ appear to prefer organic growth rather than expansion by combinations with other tech firms.

Are PE- and MB-Ratios Susceptible to Accruals, Growth, or Profitability?

Price Earnings- and Market Book-ratios presume a systematic link between financial statement data and company value. We analyze this relationship in a steady state model with overlapping capacity investments where company value is inferred from a constant growth residual income model. We investigate the joint influence of accruals, growth, and profitability on the ratios and evaluate distortions in relation to economic benchmarks. Exemplary we assess the biases that result from linear depreciation and direct expensing. The overall results indicate, that the PE-ratio is less sensitive to the modeled influences compared to the MB-ratio, for which we find large biases. Both ratios are more susceptible to conservatism/liberalism induced by direct expensing than to biases induced through linear depreciation.

In Search of Distress Risk

This paper explores the determinants of corporate failure and the pricing of financially distressed stocks using US data over the period 1963 to 2003. Firms with higher leverage, lower profitability, lower market capitalization, lower past stock returns, more volatile past stock returns, lower cash holdings, higher market-book ratios, and lower prices per share are more likely to file for bankruptcy, be delisted, or receive a D rating. When predicting failure at longer horizons, the most persistent firm characteristics, market capitalization, the market-book ratio, and equity volatility become relatively more significant. Our model captures much of the time variation in the aggregate failure rate. Since 1981, financially distressed stocks have delivered anomalously low returns. They have lower returns but much higher standard deviations, market betas, and loadings on value and small-cap risk factors than stocks with a low risk of failure. These patterns hold in all size quintiles but are particularly strong in smaller stocks. They are inconsistent with the conjecture that the value and size effects are compensation for the risk of financial distress.