Price Earnings Ratio Research Articles

EARNINGS MANAGEMENT AND FIRM’S SUBSEQUENT PERIOD PERFORMANCE: A STUDY ON NON-FINANCIAL INDIAN LISTED FIRMS

While studies internationally have found an association between earnings management and the firm’s future performance, there is limited literature concerning Indian firms. Prior research in the Indian context has revealed the existence of opportunistic accruals management. However, its impact on a firm’s future performance remains unexplored. Thus, this study examines the impact of accrual-based earnings management on future performance among listed non-financial Indian firms. This study estimates accruals management proxies for 2006-2017 using the widely accepted modified-Jones model of discretionary accruals. Firm performance is measured using ROA, ROE, and PE ratio. This study uses a one-step System Generalised Method of Moments (GMM) to address the problem of endogeneity in the dynamic panel model. The result from the estimator indicates that discretionary accruals have a negative impact on accounting-based performance measures (ROA and ROE) and a positive impact on the market-based performance measure (PE ratio). These results are consistent for the three estimators (OLS, FE, and GMM), establishing a robust relationship between accrual management and firm performance. The findings of this study are consistent with the signaling hypothesis and suggest the likelihood of accruals reversal.

Valuation of Stocks with Price Earning Ratio and Factors Affecting them on the Indonesia Stock Exchange (Basic Materials Sector Company Indexed LQ 45)

This research is about the valuation of stocks with a Price Earning Ratio in basic materials sector companies indexed by LQ 45 listed on the Indonesia Stock Exchange. In addition, this research is also an effort to identify the determining factors of the Price Earning Ratio, because the Price Earning Ratio Assessment has always been the center of attention of investors and market analysts. The samples used in this study were 9 companies using the non probability sampling method, namely Purposive Sampling with an observation period from 2017-2021. Data processing is carried out with the Eviews 12 program with stages of processing (1) descriptive statistics that describe the data used, (2) Panel regression models and the selection of the best models through the Chow, Hausman and Test tests, Lagrange Multiplier test models to produce the best model, (3) Selected models are carried out Classical Assumption Tests with the aim of Based on the selected model, the Radom effect model shows that: return on assets, debt to equity ratio, current ratio simultaneously has a positive and significant effect on the Price Earning Ratio. In partial Return on Asset, the Price Earning Ratio has a positive and significant effect. Meanwhile, the debt equity ratio and Current Ratio to the Price Earning Ratio have a negative and significant effect.

Valuation of Stocks with Price Earning Ratio and Factors Affecting them on the Indonesia Stock Exchange (Basic Materials Sector Company Indexed LQ 45)

Valuation of Stocks with Price Earning Ratio and Factors Affecting them on the Indonesia Stock Exchange (Basic Materials Sector Company Indexed LQ 45)

MEASURING INTANGIBLE ASSET: FIRM REPUTATION

The purpose of this research is to find out the measurement of firm reputation that are still relevant to represent firm reputation. The measurement that are being tested in this research are CSR Award, Firm Age, Listing Age, Market Capitalization, Buy and Hold Abnormal Return and Price Earnings Ratio as the measurement for firm reputation. The novelty of this research is able to prove LQ45 are able to become a measurement to represent firm reputation. The data sample of this research are companies that listed in Indonesia stock exchange between 2016 till 2020. To select the research sample,this research conducted purposive sampling. This research data analysis is using SPSS program to conduct descriptive statistical test and spearman correlation test to measure the correlation between each variable. The results of this study show that measurement like listing age and BHAR are no longer a relevant measurement to measure firm reputation but CSR Award, Firm Age, Market Capitalization and Price earning Ratio are still a relevant measurement to measure firm reputation.This research also found that LQ45 can be used as the novel measurement for firm reputation. This research results will be helpful for researcher in firm reputation area.

PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM PADA SUB SEKTOR PROPERTY DAN REAL ESTATE YANG TERDAFTAR DI BEI PERIODE 2016 - 2020

This study aims to determine the effect of Earning Per Share (EPS), Price Earning Ratio (PER) on stock prices. This research method is quantitative. This study uses secondary data from financial reports published on the Indonesia Stock Exchange (IDX). From the purposive sampling technique, 11 companies were obtained from the population of 65 companies in the property and real estate sub-sector. The results of this study indicate that EPS and PER partially or simultaneously have a significant positive effect on stock prices.

Research on the Corporate Value of Toyota Based on Multiple Valuation Method

Toyota corporation’s stock prices are determined by valuations, which are important in making a comparison between the company's financial status and stock price to its principal competitors' stock prices. The most common multiple valuation methods used by analysts include the Price-Earnings (P/E) ratio and the Enterprise Value to Adjusted EBITDA (EV/EBITDA) ratio. This paper uses these two compelling ratios to describe the stock prices of a corporation throughout the process of analyzing the financial ratios of a financial statement. The P/E ratio and EV/EBITDA, two key multiple valuation tools, as well as the financial data from Toyota Industries Group's primary competitors, are used to determine whether the stock prices of Toyota corporation over the past three years are overvalued, undervalued, or fair. The conclusive findings that can be drawn from the enterprise values of Toyota corporation are that they are undervalued, even though the stock prices are appropriate. Besides, through stock price valuation, investors can make judgments and choose to continue to hold or sell.

Differences in The Company's Financial Performance Before And After Corporate Action On The Indonesia Stock Exchange

This study aims to determine the differences in the company's financial performance before and after corporate action on the Indonesia Stock Exchange. The research method used is the comparative method, the sampling method used is purposive sampling, and the sample used is 13 companies. The data required is secondary data obtained from the Indonesia Stock Exchange through the website www.idx.co.id, and the data collection method uses the documentation method in the form of annual financial reports. The analysis technique used in this research is the technique of financial ratio analysis, normality test and Paired sample t-Test. The results of the Paired sample t-Test test stated that there was no significant difference before and after the company took corporate action as measured by the Current Ratio, Quick Ratio, Debt to Equity Ratio, Debt to Asset Ratio, Total Assets Turnover, Fixed Assets Turnover, Return on Equity, Return on Assets, Price to Book Value, and Price Earnings Ratio. Both from 1 year before and 1 year after, to 5 years before and 5 years after the company take corporate action. Personal motive is a factor that needs to be considered by the company in making decisions

Economic Impact Analysis of Incorporation of Elecsys sFlt-1/PlGF Ratio Into Routine Practice for the Diagnosis and Follow-Up of Pregnant Women With Suspected Preeclampsia in Argentina

ObjectivesPreeclampsia (PE) is a hypertensive disorder of pregnancy that can cause severe complications and adverse fetal/maternal outcomes. We aimed to estimate the annual economic impact of incorporating Elecsys® sFlt-1/PlGF PE ratio, which measures soluble fms-like tyrosine kinase-1 and placental growth factor, into routine clinical practice in Argentina to aid diagnosis of PE and hemolysis, elevated liver enzymes, and low platelets syndrome from second trimester onward in pregnancies with clinical suspicion of PE. MethodsA decision tree was used to estimate annual economic impact on the Argentine health system as a whole, including relevant costs associated with diagnosis, follow-up, and treatment from initial presentation of clinically suspected PE to delivery. Annual costs of a standard-of-care scenario and a scenario including PE ratio (reference year 2021) were analyzed. ResultsThe economic model estimated that using the sFlt-1/PlGF ratio would enable the overall health system to save ∼$6987 million Argentine pesos annually (95% confidence interval $12 045-$2952 million), a 39.1% reduction in costs versus standard of care, mainly due to reduced hospitalizations of women with suspected PE. The economic impact calculation estimated net annual savings of approximately $80 504 Argentine pesos per patient with suspected PE. Based on the assumed uncertainty of the parameters, the likelihood the intervention would be cost saving was 100% for the considered scenarios. ConclusionOur analysis suggests that the implementation of the sFlt-1/PlGF ratio in women with suspected PE in Argentina will enable the health system to achieve significant savings, contributing to more efficient clinical management through the likely reduction of unnecessary hospitalizations, depending on assumptions. Results rest on the payers’ ability to recover savings generated by the intervention.

The Effect of Price Earning Ratio, Return O Equity, Debt to Equity Ratio, Firm Size, and Dividend Payout Ratio to the Stock Returns on Banks Listed in LQ45 Index 2015-2020

The capital market in Indonesia is currently experiencing very rapid development from year to year, as evidenced by the increasing number of public companies every year. Banking is one of the sub-sectors included in the LQ45 index with its average share having the highest market capitalization among other sub-sectors. The development of the capital market in Indonesia, including the banking sub-sector is inseparable from the supporting factors are internal factors as seen from the company's financial ratios. This study aims to determine the influence of price earning ratio, return on equity, debt to equity ratio, firm size, and dividend payout ratio on stock returns in banks listed on the LQ45 index for the period 2015-2020. The data collection method used in this study is the documentation method. The data used is secondary data, the determination of the sample in this study was carried out by purposive sampling method. The data in this study was processed using SPSS Application. The analysis tools used are, Descriptive Statistical Analysis, Classic Assumption Test, Multiple Linear Regression, T Test, F Test, and Determination Coefficient. The results of this study show that the price earning ratio, return on equity, debt to equity ratio, firm size, and dividend payout ratio affect stock returns simultaneously. Partially, the price earning ratio, return on equity, and debt to equity ratio affect stock returns, meanwhile firm size and dividend payout ratio have no effect on stock returns

Faktor Prediktor Price Earning Ratio Perusahaan Sektor Pertanian Di BEI

The agricultural sector is a sector that is experiencing growth by the recording of 2.19% in the second quarter of 2020 even though Indonesia's economic development has a decline to negative 5.32%. The purpose of this study is to interpret whether the Current Ratio (CR), Debt to Equity Ratio (DER), and Return On Equity (ROE) can predict Price Earning Ratio (PER) in agricultural sector companies listed on the Indonesia Stock Exchange. The sampling method used was the purposive sampling method. There are 47 observations data were analyzed using multiple linear regression analysis. The test results prove that Return on Equity (ROE) is a positive and significant predictor of Price Earning Ratio (PER), but Current Ratio and Debt to Equity Ratio (DER) are not significant predictors of Price Earning Ratio (PER). Potential investors need to consider Return on Equity (ROE) in their investment decisions.

The Influence of Profitability and Price Earning Ratio on Company Value through Capital Structure in the Banking Industry Sector on the Idx

The purpose of this study was to examine and analyze the effect of profitability and price earning ratio on company value through capital structure in the banking industry sector on the IDX. This research is explanatory through hypothesis testing to test the causal relationship between the variables of profitability, price earning ratio, company value and capital structure. The data used in this research is secondary data from annual report data and financial report data of banking companies. The sampling method used purposive sampling. Hypothesis testing in this study uses path analysis. The results showed that profitability did not support the increase in the capital structure of the banking industry sector on the Indonesia Stock Exchange, and the price earning ratio did not support the capital structure of the banking industry sector on the Indonesia Stock Exchange. Then, profitability supports an increase in the value of the banking industry sector company on the Indonesia Stock Exchange and the price earning ratio does not support an increase in the value of the banking industry sector company on the Indonesia Stock Exchange, the capital structure does not support an increase in the value of the banking industry sector company on the Indonesia Stock Exchange, and there is no support mediation between profitability and price earning ratio to company value through capital structure, so that capital structure cannot be an intermediary from profitability and price earning ratio to company value

ANALISIS PERBANDINGAN KINERJA KEUANGAN PERUSAHAAN SEKTOR PERTAMBANGAN DI INDONESIA DAN MALAYSIA

This study is intended to compare the financial performance of mining companies in Indonesia and Malaysia from 2014-2019. In particular, to analyze financial performance of mining companies in both countries by applying liquidity ratios, profitability ratios, activity ratios, and market ratios. The comparison is conducted as many investors interested to invest in mining sectors, and both countries are having the similar potential and market characteristics. The number of samples employed in this study is 23 mining sector companies in Indonesia and 11 mining sector companies in Malaysia. The data is analyzed using the multiple regression equations (F-test and T-test) and the two-sample difference test (U Mann Whitney test). The findings of this research are: (1) the debt to equity (DER) significantly affects the financial performance of mining sector companies in Indonesia; (2) The variables current ratio (CR) and price to earnings ratio (PER) have a significant influence on the financial performance of mining sector companies in Malaysia; (3) The variables current ratio (X1), debt to equity ratio (X2), Total assets turnover (X3), price to earnings ratio (X4), and return on equity (X5) have an effect on the financial performance of mining sector companies in Indonesia and in Malaysia; and (4) there is no significant difference in financial performance between mining companies in Indonesia and Malaysia. The implication of this study is to assist investors to opt the best investment opportunity in mining sector in Indonesia and Malaysia stock market.

INFORMASI KEUANGAN DENGAN MODERASI UKURAN PERUSAHAAN PADA HARGA SAHAM EMITEN LQ45

The stock price is an important factor and must be considered by investors because stock price shows the performance of the company. The stock price also shows the value of a company and is an appropriate index for the effectiveness of the company. Companies that included on category LQ45 (Liquid 45) are the fourty-five dominate listed companies in the Indonesia Stock Exchange. LQ45’s stock price is relatively stable compared to the other companies, even during the current pandemic. This study aims to find empirical evidence regarding the factors that influence and moderate the stock price of LQ45. The independent variables were Price Book Value (PBV), Price Earnings Ratio (PER), profitability proxied by Net Profit Margin (NPM), Debt Equity Ratio (DER) and firm size as moderating variable. This quantitative research uses purposive sampling technique and EViews 9 for data processing. This study examines the partial influence (t-test), simultaneous influence (F-test), and moderating interaction (Moderated Regression Analysis/ MRA). The results of the partial test found that PBV, PER, NPM had some significant influence and DER had an insignificant influence to stock price. For simultaneous result, all independent variables have a significant influence on the stock price. Meanwhile, the results of the MRA found that firm size did not moderate (not a moderating variable) for the influence of the independent variables to the stock price.

A COMPARATIVE STUDY ON SELECTED INDIAN BANKS' FINANCIAL RATIOS FOR THE PERIOD FROM FY 2017–2021

The main aim of this paper is to analyse how an organisation or a companys financial performance can be determined using the financial ratios. This research examines the performance of the commercial banking industry from FY 2017 to FY 2021. For the stated time periods, financial statements of Indian banks including SBI, PNB, BOI, HDFC, ICICI, and YES Bank were retrieved from databases including annual reports, EMIS, money control, yahoo finance, and Google finance. A financial ratio is a mathematically defined connection between two accounting data (or simply as a ratio). Ratios aids in the qualitative assessment of the firms financial performance and the summarization of vast amounts of financial data. In this study, financial measures for liquidity, activity, leverage, profitability, and market value will be used to analyse the financial statements of these institutions. For the liquidity test we are using: CR(Current ratio), and QR(Quick ratio). The following metrics were used to determine profitability: NPM (net profit margin), PM (profit margin), ROE (return on shareholder equity), ROA (return on assets). PE ratios and EPS were used to assess market-based activity. KEYWORDS: Performance analysis, financial ratios, Dupont Analysis, Public sector banks, Private sector banks

The Influence of Profitability and Price Earning Ratio on Company Value through Capital Structure in the Banking Industry Sector on the Idx

The Influence of Profitability and Price Earning Ratio on Company Value through Capital Structure in the Banking Industry Sector on the Idx

Mediating Role of Corporate Governance on the Effect of Earnings Management and Financial Risk on Firm Value

This study is to determine the effect of earnings management with discretionary accruals indicators and financial risk with debt to equity ratio (DER) indicators on firm value with price earning ratio (PER) indicators with corporate governance as a mediating variable with managerial ownership and institutional ownership indicators. The research method is quantitative with the object of research being the Property and Real Estate sub-sector companies listed on the Indonesia Stock Exchange (IDX) during 2015-2017 with all out observations of 87 information. The test results show that earnings management variables have a negative and significant effect on firm value. The financial risk variable has a negative and significant effect on firm value. The corporate governance variable has a positive and significant effect on firm value. The effect of earnings management on firm value has a negative effect on corporate governance as a mediating variable. This shows that corporate governance can reduce earnings management actions. The effect of financial risk on firm value has a negative effect by the company's administration as a mediating variable. This shows that corporate governance can reduce financial risk. The results of this study provide a theoretical contribution that supports agency theory and corporate governance, which in turn makes a practical contribution to the implementation of good corporate governance in companies.

Fundamental Analysis to Assess The Fair Price of PT. Antam Tbk. Shares

The purpose of this study was to deterrmine the price of shares in PT Antam Tbk. as a reference to determine the fair price of shares of PT. Antam on the Indonesian share exchange. Fundamental analysis is a method used to determine whether the share price on the Indonesian share exchange is already appropriate to the company's intrinsic value. The research method uses a quantitative descriptive approach, namely analyzing and processing numerical data obtained from the official website of the Indonesian share exchange to determine the level of fairness of the share price of PT Antam Tbk. Price Earning Ratio in the period 2020-2022 of PT. Antam Tbk. has increased and Price Book Value in the period 2020-2022 of PT Antam Tbk. is at a fair share price value position (undervalued).

The Effect of Financial Fundamental Factors on Systemic Risk in LQ45 Companies Listed in Indonesia Stock Exchange

This study aims to analyze the influence of fundamental factors on systematic risk. Fundamental factors are represented by the current ratio (CR), debt to equity ratio (DER), return on equity (ROE), and price earning ratio (PER). While the systematic risk for this study is calculated using the beta value of the stock. The research uses a quantitative approach with verification research methods. The sample used in this study is issuers who are members of the LQ 45 group during the 2017-2021 period. The analysis technique used is multiple regression. The results showed that DER and PER partially affect systematic risk, while CR and ROE partially have no effect on systematic risk. However, simultaneously these factors affect the systematic risk.

THE THE EFFECT OF EARNING PER SHARE, PRICE EARNING RATIO, DEBT TO EQUITY RATIO, AND CURRENT RATIO ON STOCK PRICE OF MINING COMPANY LISTED IN INDONESIA STOCK EXCHANGE (IDX) 2018-2021

This study aims to test hypotheses and examine the impact of Price Earning Ratio, Earnings Per Share, Debt to Equity Ratio, and Current Ratio on the stock prices of Mining Companies Listed on the IDX in 2018–2021. This study adopted a quantitative methodology and employed a sample technique that included up to 39 samples from 52 firm populations. The findings showed that the stock prices of mining businesses are significantly and positively impacted by EPS, PER, DER, and CR at the same time. While PER has no effect and no major impact on stock prices, EPS and CR have a partly positive and substantial impact, while DER has a partial negative and large impact on stock prices in mining companies listed on the IDX in 2018-2021.

Investment and trading strategies in the maritime sector: an application to the secondhand containership market

As shipping market players operate in a competitive and volatile business environment, their highly capital-intensive investment decisions to target value-generating projects are exposed to critical risks. Therefore, the paper investigates the efficiency of investment strategies based on the combination of technical trading rules and fundamental analysis in selling and purchasing ships in the container shipping market. Using historical datasets of second-hand vessel prices and time-charter rates from October 1996 to June 2021, long-run cointegrating implications and short-run causality spillover effects are examined for three groups of containerships, distinguished by their transportation capacity, viz. 725 TEUs, 1700 TEUs, and 3500 TEUs. In addition, the moving average trading rules are used to indicate the timing of investment or divestment decisions through the analysis period. The results for vessel prices and earnings for 3500 TEU containerships appeared to be more volatile compared to smaller ships (725 TEUs and 1700 TEUs), while time-charter earnings are seen to exert an impact on second-hand prices across all vessel types. Moreover, due to higher volatility, the trading strategies based on price-earning ratios significantly outperform the buy-and-hold strategies for the 3500 TEU and the 1700 TEU containerships. On the contrary, the decision to buy-and-hold smaller container ships (725 TEU) yields higher profits than the active sale and purchase strategy. The insights provided in this paper can be used by multiple stakeholders, such as liner operators, investors, lessors, and researchers.