Market Value Of Companies Research Articles

Pengaruh Penerapan GCG yang dinilai Menggunakan Corporate Governance Index, Kepemilikan Institusional, dan Kepemilikan Manajerial Terhadap Nilai Pasar Perusahaan

Intense business competition in the primary consumer goods sector in Indonesia has caused company management in this sector to always try to achieve efficiency and production so as to achieve maximum profit. However, to achieve this, companies sometimes issue operational policies that are contrary to applicable laws. Implementation of Good Corporate Governance (GCG) is urgently needed to avoid conflict of interest between company owners and management due to intense business competition in the sector. One tool to see the success of a company implementing GCG is the company's market value. This study uses a random effect model test to find out the relationship between GCG which is assessed using the corporate governance index (CGI), institutional ownership, and managerial ownership statistically influencing the market value of companies in the primary consumer goods sector listed on IDX from 2014 to 2019. Results of the study This shows that there is a negative relationship between the company's market value and the company's market value, while institutional and managerial ownership do not show significant results in statistical tests.

Relevance of Value Owned Profit and Cash Flows Based on the Life Cycle in the Growth Stage of Food and Beverages Companies Listed on the Indonesia Stock Exchange

This study aims to determine the relevance of the value of earnings and cash flow as a measure of accounting performance against market value when the company is in the growth life cycle. The sample of this company is a food and beverage company listed on the Indonesia Stock Exchange in 2006-2010. The sample was selected using the purposive judgment sampling method and 16 companies were sampled. The results showed that (1) earnings have value relevance in measuring the market value of the company at the stagegrowth, (2) profit is significant to the market value of companies that are in the company's life cycle at the growth stage, (3) cash flows are not significant to the market value of companies that are in the company's life cycle at the growth stage, (4) profit is an option for investors in assessing whether they will invest in the company. With a relatively short time, investors are required to move quickly and precisely in assessing the company, therefore profit is the right component in completing work.

DAMPAK PENGGUNAAN METODE NILAI WAJAR TERHADAP NILAI PERUSAHAAN

The use of fair value metode is something that affects the value of the company. This study aims to test the impact of using the fair value method on company value. This type of research is qualitative research. This research uses the literature review method. The results of the study using the literature study data analysis method, obtained the result that fair value is not always stable and can be fully trusted, especially when the market is illiquid or under pressure. So, reasonable value can affect a company's market value, but it doesn't necessarily directly affect its intrinsic value or actual value. This is because fair value is based on the market's valuation of an asset or company at a given time.

Effects of the COVID-19 pandemic on the market value of Japanese gaming companies

ABSTRACT In this study, we examine the short-term stock price reactions of Japanese gaming companies to events related to the coronavirus disease 2019 (COVID-19) pandemic. Using the event study method, we first estimate stock price reactions to the outbreak of the pandemic and the declaration of a state of emergency. We then perform multivariate regressions to investigate the factors affecting market responses. Our results demonstrate that the stock prices of Japanese gaming companies reacted negatively to the outbreak of the COVID-19 pandemic, and the initial negative effects were greater for mobile gaming companies and for companies with small sizes or low Tobin’s Q. By contrast, the market has reacted positively to the declaration of the state of emergency, which perhaps drove more people to play games at home.

Analisis Likuiditas, Leverage dan Ukuran Perusahaan

Research to better understand the real estate and plantation market in Indonesia, analyze the factors that affect returns on investment, and make policy recommendations that can improve efficiency and productivity in these areas. Combined quantitative research was conducted to investigate liquidity, leverage, and company size to determine the relationship between these variables. One factor that affects a business's value is its profitability, which can be measured from the profits generated by the company every year. If the company is very productive and profits increase, it will attract investors, and the value of the company will grow. Profitability is the ability to generate profits from sales or investments, while liquidity is the ability to pay short-term obligations on time. Leverage measures how well a company uses debt to finance its operations, and company size is the company's total market value.

Antitrust’s effects: Lessons for evidence-based policy

There is no unanimous opinion on the benefits of antitrust actions. They can result in direct and indirect costs for companies. The article evaluates the effect of the enforcement activities of the Federal Antimonopoly Service of Russia on the market value of companies in the oil industry (reputational costs). An empirical conclusion was obtained on the basis of a sample of events of Russian oil companies from 2012 to 2018 that the actions of the antimonopoly service significantly affect the company’s value not only when the fact of violation is established and decisions are made and orders are issued, but also when only its signs are established and warnings are issued and cases are initiated.

Environmental, Social and Governance Performance Disclosure and Market Value: Evidence from Jordan

Our article seeks to investigate the impact of ESG disclosure in its three dimensions, both collectively and individually, on the market value of Jordanian-listed companies from 2012 to 2019. Using a sample of 173 companies listed in ASE, 1,384 observations were collected. The findings indicate that environmental and social disclosure maximize companies’ market value, and the ESG disclosure collectively has positively affected the market value. At the same time, the results do not show any important role in governance. This indicates that companies pay close attention to various stakeholders, particularly external stakeholders, and wish to increase trust and transparency by disclosing their ESG performance. As a result, companies’ confidence in the capital markets is reinforced, and improved disclosure practices positively affect market value. This study adds an empirical contribution to the literature by investigating the influence of sustainability reporting on companies’ market value in the context of emerging economic countries.

Corporate Governance dan Kinerja Keuangan Perusahaan Pertambangan Indonesia

This study aims to analyze the effect of corporate governance on financial performance. Financial performance is measured based on market value using the Tobin's Q model. Meanwhile, corporate governance is seen from the principle of independence by using managerial ownership, institutional ownership, and the size of the independent board of commissioners as proxies. Based on the purposive sampling method, 35 mining sector companies were selected which were listed on the Indonesia Stock Exchange with the 2016-2020 observation period so that 175 observation units were obtained. The data analysis technique uses multiple linear regression. The results showed that managerial ownership and institutional ownership had no effect on financial performance, while the size of the independent board of commissioners had a significant negative effect on financial performance. This shows that the number of shares owned by the company's management as well as private and government ownership does not affect the company's financial performance. Meanwhile, the greater the number of independent commissioners, the lower the company's financial performance based on market value. This could have been caused by a negative investor assessment that reduced demand for company shares, which in turn had an impact on a decrease in the company's market value. So, the company is advised to increase the number of independent commissioners. For further research it is suggested to use audit quality as another proxy and analyze the principles of Good Corporate Governance in a comprehensive manner.

Do environmental and economic performance go hand in hand? An industrial analysis of European Union companies with the non‐parametric data envelopment analysis method

AbstractThe aim of the study is a cross‐industry, comparative assessment of the environmental and economic performance of companies listed on the regulated markets of the European Union. The research covers 10 industries between 2011 and 2020 using data from the Refinitiv Eikon database. The initial research sample covered almost 21,000 public companies listed on 27 European stock exchanges. We assumed that enterprises with above‐average environmental efficiency in a given industry are also highly economically effective. To test effectiveness, we used the non‐parametric data envelopment analysis method. The analysis was conducted with efficiency measures oriented at minimizing inputs and constant return to scale (CRS model). The model includes two economic results (the company's profitability and market value) and selected inputs that reflect the company's environmental performance (energy consumption, water consumption, waste production and CO2 emissions). We found that, contrary to assumptions, companies with a high environmental index do not necessarily achieve the highest economic performance, and differences across industries exist.

THE VALUE RELEVANCE OF THE SUSTAINABILITY REPORTING (SR): EMPIRICAL EVIDENCE ON INDONESIAN


 
 
 
 This study empirically examines the value relevance of sustainability reporting (SR) in explaining the market value of the firm. The sample of this study is all non-bank companies and financial institutions that go public on the Indonesia Stock Exchange which disclose sustainability reporting for the period 2010 - 2020. Based on these conditions, 590 observations were obtained. Hypothesis testing using SPSS. If the SR*EPS (Earning Per Share) interaction and the SR*BVPS (Book Value Per Share) interaction are significantly positive on the market value, then SR has a value relevance in explaining the company's market value. The results show that SR reduces value relevance. This result indirectly proves that the company's financial information can still be used as a basis for decision-making by investors. 
 
 
 

The benefits of climate tech: Do institutional investors affect these impacts?

This study analyses the impact of investment in climate change mitigation innovations and technologies on companies, both from a financial and reputational viewpoint, as well as in terms of their environmental performance. We also investigate the moderating effect of institutional investors on the relationship between climate change mitigation investments and firm performance, considering their presence in shareholdings and their typology. We argue that the time horizon and objectives of their investments determine the approach to the integration of environmental criteria in the companies in which they invest. The results obtained for an international sample of 38,666 observations for the period 2010–2020, indicate that investment in climate-change mitigation technologies shows an increasing evolution, focusing especially on clean technologies and, to a lesser extent, on green building. The presence of shareholding by institutional investors with a long-term time horizon and strategic objectives enhances the impact of these projects on the company's image, market value, and profitability. At the environmental level, their effects are particularly associated with the responsible management of resources, and has a limited effect on emissions. The results are robust to different methodological specifications, validating the theoretical and practical implications of this research.

Does ESG Affect The Firm Value?

Objective - As the concept of sustainability develops in the industrial world, stakeholders are compelled to consider ESG performance when measuring company value. A company needs to increase its value and demonstrate its sustainability capabilities by publishing sustainability reports on ESG factors. This research aims to inquire whether ESG affects the firm's value. Methodology/Technique – The causality research is analyzed with Eviews using ASEAN panel data from 2019-2021 to measure the effect of ESG on firm value with a total of 738 firm years of data. Findings - Environmental performance is associated with high ecological costs in developing nations and is a burdensome additional expense that will deteriorate the company's financial condition. Disclosure of nonfinancial information jeopardizes the creation of company value, resulting from meeting the demands of stakeholders imposed on the company, thereby causing other agency conflicts. The relatively low level of investor confidence in the signal contributes to ESG performance that lowers the company's market value. Most investors respond negatively to these signals, assuming that the activities disclosed in ESG reporting are too costly and detrimental to their interests. They could be more enthralling in investing, decreasing market demand, and reducing the company's value. Novelty - This study explains the determinants of firm value from ESG scores and separate ESG scores in the ASEAN market. Type of Paper: Empirical. JEL Classification: F64, L50, Q25, G02, G39, M14 Keywords: ESG, Firm value, Environment score, Social score, Governance score, Sustainability Reference to this paper should be referred to as follows: Palupi, A. (2023). Does ESG Affect The Firm Value?, Acc. Fin. Review, 7(4), 19 – 26. https://doi.org/10.35609/afr.2023.7.4(3)

Research on the Influence of Covid-19 on U.S. Oil Industry Based on Fama-French 5-Factor Model

This article explores U.S. investors' investment decisions in the oil industry in response to three major events during the COVID-19 pandemic, which are the outbreak of the COVID-19 epidemic, the successful achievement of the Pfizer vaccine, and the end of the COVID-19 epidemic. The data, ranging from January 2019 to November 2022, is processed with Fama-French 5-factor model and the fitting results of the 5-factor model of these four periods of time are derived by multiple linear regression. The significance of each factor of the model will change due to different choices of investors, especially SMB, RMW and CMA. In different periods of the epidemic, investors will not pay attention to the market value, ROE and total asset growth rate of oil companies because of events that are not conducive to the oil industry, such as the US interest rate hike and the Russia-Ukraine war. In addition, investors will also refocus on these indicators when they hear news that is positive for the stock market, such as the successful development of Pfizer's vaccine or a cut in U.S. interest rates. By conducting comparisons and analyses, this article highlights the fluctuations in the stock market within the oil industry. The insights gained from this analysis can prove beneficial for both investors and government officials when formulating policies and making informed decisions.

Research on the Influence of Covid-19 on U.S. Oil Industry Based on Fama-French 5-Factor Model

This article explores U.S. investors' investment decisions in the oil industry in response to three major events during the COVID-19 pandemic, which are the outbreak of the COVID-19 epidemic, the successful achievement of the Pfizer vaccine, and the end of the COVID-19 epidemic. The data, ranging from January 2019 to November 2022, is processed with Fama-French 5-factor model and the fitting results of the 5-factor model of these four periods of time are derived by multiple linear regression. The significance of each factor of the model will change due to different choices of investors, especially SMB, RMW and CMA. In different periods of the epidemic, investors will not pay attention to the market value, ROE and total asset growth rate of oil companies because of events that are not conducive to the oil industry, such as the US interest rate hike and the Russia-Ukraine war. In addition, investors will also refocus on these indicators when they hear news that is positive for the stock market, such as the successful development of Pfizer's vaccine or a cut in U.S. interest rates. By conducting comparisons and analyses, this article highlights the fluctuations in the stock market within the oil industry. The insights gained from this analysis can prove beneficial for both investors and government officials when formulating policies and making informed decisions.

The Role of Dividend Policy in Explaining Corporate Governance and Profitability on Firm Value

This study aims to determine the effect of corporate governance and profitability on dividend policy based on substitution theory and/or outcome theory in the banking sector in Indonesia. Theoretically, this study contributes which theory is more dominant between substitution theory and outcome theory by linking the influence of corporate governance with dividend policy and providing information about the impact of the application of the theory on firm value and build awareness to be careful of investors. Investors in making investment decisions, especially in the banking industry in Indonesia. In addition, this study also examines the role of dividend policy in explaining the relationship between corporate governance and profitability on the value of banking firms. A sample of 135 observational data comes from 27 banking companies during 2016-2020. This research found that corporate governance has a negative and significant influence on dividend policy. In addition, the CG index is one of the factors that can explain the company's market value. Profitability is empirically proven to influence dividend policy. Dividend policy is proven to play a role in mediating the relationship between profitability and firm value. However, it is empirically proven that dividend policy cannot mediate the relationship between corporate governance and firm value.

The Voluntary Disclosure of Human Capital and Its Impact on the Market Value of Companies

Human resource accounting is only an attempt to ascertain the cost and value of the company’s human resources in terms of expenditures incurred through employment, social welfare, training, development, compensation, etc., in addition to trying to judge the contribution of these factors to the economic value of the company. This research aims to study the effect of human resource variables, compensation, and welfare of employees, training expenses, and profits after tax on the value of the company. Both market capitalization and total assets were used to determine the value of the company, and 40 companies were chosen from the Iraq Stock Exchange for the year 2018 to research. To achieve the research objectives, a multiple regression model was used. This research found that compensation to employees has no significant impact to affect the market value, while employee care and training expenses and profits have a positive and significant impact on market capitalization. The current research also revealed that employee compensation has a significant and negative effect on total assets, while employee care and training expenses and post-tax profits affect morally and positively the total assets.

Shipping Market Valuation and BDI Analysis under COVID-19

Contemporarily, COVID-19 as a major "Black swan" event strong affected the trade and shipping industry. Meanwhile, its continuous spread in the global scope has impacted the international shipping market, and the market value of some domestic shipping companies has also shown a downward trend. This paper adopts dual-line parallel research based on ROE DuPont analysis, CAPM and DDM model to analyze the market value of some shipping companies, and using Eviews regression model to analyze the Baltic Dry Index (BDI). According to analysis, COVID-19 has had a certain negative impact on the valuation of shipping companies. Due to the changes of the epidemic situation, the market valuation of shipping companies is still full of uncertain factors. Moreover, there is a certain degree of negative correlation between COVID-19 and BDI index, which will diminish with the improvement of the epidemic situation. The change of COVID-19 situation has become one of the important factors to judge the trend of BDI index. These results shed light on guiding further exploration of the future market valuation of shipping companies and the judgment of BDI index to some extent.

The Impact of Industry Specialist on the Relationship between Returns and Future Earnings

Abstract Financial statements reveal the company's profitability and be used as an important indicator of the risk assessment. Auditor industry specialists can provide better quality of financial reports and informative disclosures. According to Lundholm and Myers (2002), we examine whether the fact that accountants or audit firm are industry specialists will affect the relationship between returns and future earnings. Since there exists the special system of dual attestation in Taiwan, we divide the accountants into lead auditors or concurring auditors to examine the above relationship. Empirical results indicate that the higher future earnings response coefficients are associated with the companies audited by industry specialist, the higher number of industry specialists, the more industry experience of industry specialists and the greater market value of company. These findings imply that more information about future earnings are revealed. Therefore, it improves the disclosure of company's future earnings when the accountants or audit firms are industry specialists. In addition, we do not find the evidence that the future earnings response coefficients in companies audited by the lead auditor as industry specialist are higher than those in companies audited by the concurring auditor as industry specialist and in specialist accounting firms. JEL classification numbers: G34, M41, M42. Keywords: Industry specialist, Dual-signature, Future earnings response coefficient (FERC).

How Does Tobin’s Q Respond to Merger and Acquisition Announcements: Evidence of Listed Indian Firms

Purpose: The aim of this study is to examine the linkage between mergers and acquisition announcements and firm’s valuation taking into consideration Tobin’s q. Theoretical framework: The Q theory of investment propounded by James Tobin (1969) is suitable for the present study. According to this theory, there is a significant correlation between a company's market value and its rate of investment. Following this, indicators of the relative potential profitability of investments are the valuations that are placed in financial markets on the securities of companies as ratios to the costs of replacing their assets, which is denoted by q. Design/methodology/approach: The current investigation examines Tobin's q distribution for 140 listed firms on the Bombay Stock Exchange from 2011 to 2022. Tobin’s q is calculated for the financial service sector of the Indian economy. Findings: The results study suggests that Stock markets react significantly to the valuation of Indian firms due to M&A announcements in the category of non-banking financial companies. More specifically, 40 companies have a high Tobin’s q ratio in the full sample of firms. According to the findings, the majority of M&A announcements had no effect on the Tobin's q of the sampling companies. This indicates that the stocks of companies operating in the financial services sector are not affected by news of mergers and acquisitions. It demonstrates that the Indian capital market responded normally to information on mergers and acquisitions. Research, Practical & Social implications: The study helps financial analysts, top-level management, and stakeholders of a company to correctly evaluate the impact of mergers and acquisitions announcements on Tobin’s q of firms as a performance measurement metric. Originality/value: The value of the study can be evaluated from the fact that it investigates the relationship between mergers and acquisitions announcements and Tobin's q as a crucial parameter for corporate valuation, which is the first of its kind for emerging economies.

Value Relevance of Climate Change Disclosure: An Empirical Study on The Oil & Gas Companies Listed on Toronto Stock Exchange (TSX)

This study looks at how important it is for oil and gas companies which are listed on the Toronto Stock Exchange (TSX) to disclose information on climate change. I create a disclosure index by doing a content analysis of 58 firms' publicly accessible documents. As an independent variable, the Disclosure Index Score derived from the content analysis of 58 corporations is taken into consideration. As a stand-in for business value, the market to book assets ratio is employed. The relationship between corporate value and the degree of climate change disclosure is investigated in this study. According to empirical data, investors weigh how much information has been disclosed on climate change when determining a company's market value. Because it looks at the connection between climate change declarations and businesses' value, this study adds to the body of knowledge in environmental accounting. Practically speaking, the results of this investigation will give the Canadian Securities Administrator (CSA) an understanding of how disclosures about climate change are made and give them a framework for drafting associated disclosure requirements. Additionally, it should motivate Canadian oil and gas corporations to reveal their GHG emission reduction plans and strategies.