Price Earnings Ratio Research Articles

Impacts of China's Stock Market Registration System and Future Insights

This study will explore the impact of the registration system on the stock market after China changed from the approval system to the registration system. Under the approval system, the government monopolizes the right to review stock listings in the approval system. Therefore, this situation not only easily creates the government's monopoly power but may also lead to companies over-packaging IPO application materials to increase the possibility of passing the review. This will cause the government to spend too much time and energy conducting substantive studies of corporate application materials, reducing work efficiency. Therefore, the registration system will be officially implemented in March 2023. The proposed research will investigate the issuance and distribution of new shares, changes in the price-earnings ratio, and changes in the latest lottery rate and yield, as well as the changes in the hairstyle system and how it performed after listing (industry, valuation, and average growth rate) to conduct a comprehensive analysis. Thus, the existing research results are used to propose the impact of the registration system on the Chinese stock market.

The Intervention Role of Profitability in the Relationship between Liquidity and Intellectual Capital to Firm Value in Digital Banks on the IDX

This study aims to analyze the effect of Liquidity and Intellectual Capital on Firm Value with Profitability as an intervening variable. The population of this study were Digital Bank subsector companies listed on the Indonesia Stock Exchange during the 2021-2023 period, with a sample of 7 companies. Liquidity is proxied by Loan to Deposit Ratio (LDR), Intellectual Capital with Value Added Intellectual Coefficient (VAIC), Profitability with Return on Assets (ROA), and Firm Value with Price to Earnings Ratio (PER). The data were analyzed using the panel data regression analysis method processed with EViews 12 software. The results showed that Liquidity and Intellectual Capital had no effect on Firm Value. Liquidity and Intellectual Capital have a significant positive effect on Profitability. Profitability is able to mediate the effect of Liquidity and Intellectual Capital on Firm Value, with indirect-only mediation effect.

Evaluating financial risk management in corporation financial security systems

Systemic risks are relevant to most segments of financial and economic activity, which creates the threat of financial instability of enterprises. Financial security, in this case, implies the state of financial soundness; it is expressed through various parameters including the level of solvency, financial stability, business activity, and efficiency of management. These questions are specific to each indicator, and this paper aims to understand their relations and how changes in them can result in risks. It elaborates the risk analysis and assessment procedure that uses a set of common financial analysis tools and determines key financial coefficients. Liquidity ratios, solvency ratios, profitability ratios, and the risk exposure metrics are the key areas that the research is based on. Correlating the financial indicators from a rich dataset from Yahoo’s Stock market data, regression analysis is used to determine these relationships between these indicators and risk management factors. A positive relationship between liquidity ratios and profitability is detected points to the fact that, firms with high liquidity levels are more capable of attaining good financial health and returns. It establishes the need for the development of a credible risk management structure that would lower threats to fiscal and economic activities. In light of this, the research shows that the liquidity and solvency management lowers financial risk and improves return for companies. The regression analysis was conducted to ascertain the degree of predictability of each independent variable to the dependent variable and the findings revealed that approximately 94 percent of each independent variable is predictable of the dependent variable that able to establish as much as 5% of the total variability in profitability, with the PE ratios being an indication of this aspect, was attributed to stock prices, as a result, the firm must be keen on its financials. This paper explores the employability of the proposed methods and models to assess the risks with high accuracy and supports optimum decision making in regard with the needed security of the enterprises. By adopting these methodologies, the businesses can observe and estimate risks which exist in the future which would help them to avoid certain issues or dangers and also pave the way for the improvements of the financial stability of the businesses. On this note, the study establishes the fact that incorporating the notion of total risk management into the framework of analyzing business and making financial decisions is inevitable in maintaining corporate financial stability and realizing perpetual economic solidity. This research enriches the literature on financial risk management, as it outlines viable strategies for the protection of enterprise financial sustainability.

The Influence of Earning Per Share (EPS) and Price Earnings Ratio (PER) on Stock Prices in the Food and Beverage Sector on the Indonesian Stock Exchange (BEI) for the 2015-2019 Period

The objective of this study is to examine the impact of earnings per Share (EPS) and Price Earnings Ratio (PER) on the stock prices of companies in the food and beverage industry listed on the Indonesia Stock Exchange (BEI) from 2015 to 2019. EPS is utilized as a metric to gauge the profitability of each share, whereas PER characterizes the market's assessment of the earnings generated per share. The research employed a descriptive verification analysis method, utilizing a sample of seven prominent organizations within the researched sector.The data utilized is derived from the yearly financial reports of each company, specifically secondary data. The investigation employed multiple regression approaches to examine the hypothesis regarding the impact of EPS and PER on stock prices. The test utilizes the coefficient of determination to ascertain the extent to which the regression model can account for the fluctuations in stock prices.The research findings indicate a substantial correlation between EPS (Earnings Per Share), PER (Price Earnings Ratio), and firm share prices within the food and beverage industry on the IDX (Indonesia Stock Exchange). The R^2 value of 0.753 suggests that 75.3% of the changes in stock prices can be accounted for by the independent variables, EPS and PER. In this industry, share prices are primarily influenced by the profitability per share and market valuation.In addition, this study emphasizes that additional variables not investigated in this research can significantly impact stock prices, including macroeconomic conditions, market sentiment, government regulations, and other external factors. Stable macroeconomic conditions can lead to more favorable circumstances for increased stock values, whereas government policy or market sentiment alterations can profoundly influence a company's stock performance.The recommendations derived from this study are intended for investors and corporate executives operating in the food and beverage industry on the IDX. Investors are advised to consider the earnings per share (EPS) and price-to-earnings ratio (PER) components of their fundamental analysis to make better-informed investment choices. It is recommended that companies prioritize enhancing their financial performance and ensuring openness in their financial reporting to boost market trust and raise the value of their shares.Subsequent investigations might broaden the range by including supplementary variables like Dividend Yield or Return on Equity (ROE) while doing a more extensive analysis of qualitative elements that impact market perceptions of EPS and PER. This research contributes to understanding the factors that impact share prices in the Indonesian capital market, particularly within the food and beverage industry.

Antecedents of Profitability of Non-Life Insurance Companies: Nepalese Perspective

Current study aims to investigate the determinants that has impacted on non-life insurance companies’ profitability in Nepalese scenario. Four industries were selected as sample purposively. The data from 2011/12 to 2020/21 AD have been incorporated. The study has chosen to use a descriptive and correlational research design. The firm size, price earnings ratio, earnings per share, and claim paid are the predictors and profitability proxied by ROA was the predicted variable. The study found that the most prominent determinants for profitability in non-life insurance companies are EPS and company size. The PE ratio and claims paid have been found as less prioritized factors of the predicted variable.

How to Equity Ratio, Profitability and Firm Value Shape Stock Prices: An In-Depth Analysis

This research aims to determine the effect of the Debt-to-Equity Ratio, Earning Per Share, and Price Earning Ratio on the share price. This research uses a quantitative approach with secondary data obtained from financial reports for the period 2015 to 2019. The research results show that simultaneously, the variables DER, EPS, and PER have a significant influence on stock prices. Partially, the DER and EPS variables have a weak influence on stock prices, while PER has a stronger influence on share prices. This finding has the implication that company management must consider these financial factors in their share price increase strategy. It is hoped that this research can contribute to financial literature and become a reference for further research. The contribution of this research to the finance literature is significant in several ways. First, this research highlights the influence of the Debt-to-Equity Ratio (DER), Earning Per Share (EPS), and Price Earning Ratio (PER) on the share price of PT Agung Podomoro Land Tbk from 2015 to 2019. Managerial Implications The study examining the effect of Debt-to-Equity Ratio, Earning Per Share, and Price Earning Ratio on stock prices provides critical insights for corporate financial managers and investors.

Pengaruh Struktur Modal Terhadap Nilai Perusahaan Dengan Profotabilitas Sebagai Variabel Moderasi

In the midst of the increasingly rapid development of the business world, company value plays an important role, especially in the eyes of investors. Company value is an important element that describes the success of achieving company performance. There are several factors that can influence company value, including capital structure and profitability. This research aims to examine the effect of capital structure on company value with profitability as a moderating variable. In this case, capital structure is proxied by the Debt Equity Ratio (DER), while company value and profitability are proxied by the Price Earning Ratio (PER) and Return on Equity (ROE), respectively. The object of this research uses a sample of government-owned commercial banking companies listed on the Indonesia Stock Exchange (BEI) during the observation period 2016 - 2023. The sample was selected based on predetermined criteria and data analysis using Smart PLS3. The results of hypothesis testing show that the DER variable has no effect on PER in government-owned commercial banking companies, while ROE is able to moderate the effect of DER on PER in government-owned commercial banking companies.

Dividend Policy and its Impact on Price: Empirical Insights from Nepalese Life Insurance Companies

This study aims to evaluate the correlation and examine the impact of the explanatory factors, specifically EPS, DPS, PE ratio, management expenses to premium collected, capital to total assets, efficiency ratio, age of firm, and profitability on market price per share. Out of 14 life insurance companies operating in Nepal, 9 companies had been chosen for the study. The ordinary least square (OLS) method is used to examine the effect of predictor variables on MPS. The findings indicate that EPS, DPS, and PE ratios exhibit positive and significant correlations with and influence on share price (MPS). Moreover, this study identifies a detrimental correlation between profitability and MPS. The management expenses, in relation to the premium collected and capital to total assets, exert a detrimental and statistically significant influence on MPS. This study provides evidence in favor of the dividend relevancy theory, as it demonstrates that the dividend per share (DPS), earnings per share (EPS), and price-to-earnings (PE) ratios have a statistically significant and positive influence on the share price, as assessed by the market price per share (MPS). Nevertheless, this analysis challenges the dividend irrelevancy argument by highlighting that a company's market value is determined by its operational income rather than its capital structure or dividend payout policy. Therefore, this research supports the dividend relevancy theory. The findings of this study can be advantageous for investors seeking to enhance their returns and augment their wealth through investments in lucrative areas.

Impact of Financial Performance and Economic Value Added (EVA) On Stock Returns before and after Covid-19 Pandemic: A Case Study of Telecommunications Companies Listed on IDX

This research aims to investigate the impact of financial performance and Economic Value Added (EVA) on stock returns of telecommunication companies listed in the Indonesia Stock Exchange before and after the COVID-19 pandemic. Financial performance in this research is proxied by Return on Assets (ROA), Return on Equity (ROE), Price-Earnings Ratio (PER), Debt-to-Equity Ratio (DER), Net Profit Margin (NPM), and Earnings per Share (EPS). The study employs a purposive sampling method and selects 10 companies in the telecommunication sub-sector for analysis. The type of research used is a quantitative research design, including Panel Data regression analysis and the Wilcoxon Signed Ranks Test. The findings of this study show that ROA, ROE, and PER significantly impacted stock returns before COVID-19, however, this impact did not exist after the pandemic; DER, NPM, and EPS consistently affect stock returns both before and after the pandemic; and EVA only becomes significant after the pandemic. Simultaneously, ROA, ROE, PER, DER, NPM, EPS, and EVA influenced stock returns before COVID-19, but they did not have any impact after the pandemic. Despite these individual shifts, there are no significant differences in overall financial performance metrics and stock returns between the before and after COVID-19 periods. Future research should consider additional financial metrics or external factors such as market volatility, inflation rates, or industry-specific variables to provide a more comprehensive understanding of stock return determinants.

Pengaruh Faktor Fundamental dan Risiko Sistematik Terhadap Harga Saham pada Perusahaan Sektor Ritel yang Terdaftar di Bursa Efek Asean-5 Tahun 2021-2023

The capital market is a means for companies to obtain funds from the public through the stock market. Capital markets in the ASEAN region provide new opportunities for investors in ASEAN countries and create opportunities for foreign market stock exchanges. This research aims to examine the influence of fundamental factors and systematic risk on stock prices listed on the Asean-5 Stock Exchange. The sampling technique uses a purposive sampling method. The population of this research is all retail sector companies listed on the ASEAN-5 Stock Exchange with a population of 121 and a sample of 23 companies. Based on research results, return on assets has a positive effect on stock prices, earnings per share have a negative effect on stock prices, debt to equity ratio has a negative effect on stock prices, price earnings ratio has a negative effect on stock prices, and systematic risk has a negative effect on the stock prices of retail sector companies.

Nexus between investor returns of Nigerian deposit money banks and integrated reporting with the moderating role of profit after tax

Integrating reporting strives to address issues with corporate reporting procedures and hold businesses responsible for their local surroundings, as well as additional stakeholders impacted by their operations in producing returns for investors. This study employed Nigerian deposit money banks to examine whether investor returns with profit after tax and integrated reporting are statistically and significantly related. Ex post facto research methodology was applied. Purposive sampling was used to sample ten Nigerian deposit money banks. Data were taken from the annual reports of the chosen banks. The international integrated reporting framework of 2021 checklist was utilized to extract integrated reporting data using the unweighted content analysis method. The integrated reporting disclosure index was used as a proxy for integrated reporting. Market price per share, dividend per share, and price-earnings ratio were used as proxies for investor returns. Profit after tax was used as a moderating variable. The results indicate that with the moderating variable, which is Profit after tax, integrated reporting and price-earnings ratio are related to coefficients of 9.9585. Integrated reporting and dividend per share are related to coefficients of 3.151612. Integrated reporting and market price per share are related to coefficients of 36.7535. Dividend per share and integrated reporting disclosure are significantly related to p-values of 0.001. Market price per share and integrated reporting disclosure are significantly related to p-values of 0.002. This study concluded that integrated reporting and investor returns are statistically and significantly related to the moderating role of Profit after tax of Nigerian deposit money banks. AcknowledgmentThe involvement of those who helped make this study successful is acknowledged below. We appreciate your involvement.

Effects of Impurities and Ageing on the Functional and Rheological Properties of Asphalts with Additives from Recovered and Pyrolysis-Processed Plastics.

This article is a continuation of work on the use of plastic waste (such as PP, PS, LDPE, HDPE, and their mixtures) processed in the proprietary pyrolysis process as asphalt additives. The article carried out detailed tests of the mixes of selected additives with pen-graded bitumen 50/70, taking into account, among others, the influence of impurities and the ratio of PE to PP in the additives as well as short- (RTFOT) and long-term (RTFOT + PAV) ageing. An extensive research program was carried out, including functional and rheological tests in a wide range of temperatures. First, tests of stability and adhesion to various types of aggregates were carried out, demonstrating the usefulness of the proposed additives. Then, the elastic recovery and the impact of technological ageing on penetration, Fraass breaking temperature, and plasticity range were assessed. The same binder mixes were subjected to rheological tests in a wide range of technological and operational temperatures, assessing, among others, viscosity, the norm of the complex shear modulus, elastic recovery and compliance in the MSCR test, and stiffness in the bending beam rheometer. This entire class of tests was carried out for clean samples and those containing impurities, indicating their impact on individual material parameters.

Unlocking the Secrets of Sensex Returns: The Crucial Role of Valuation in Different Time Horizons

The study attempts to analyse the return generated by BSE Sensex for the past 24 years and the risk associated with investments in different periods. The study also explores the relationship between valuation ratios and Sensex returns. For this purpose, Sensex data (Index value, Price-earnings ratio, Price-to-book value) for 24 years (1998 to 2022) is taken. The data is analysed using Compounded Annual Growth Rate (CAGR) for different time periods along with standard deviation to assess the return and risk. The association between valuation ratios and index return is analysed using correlation analysis and ANOVA. The results show that risk of investment can be substantially reduced by increasing the holding period of security. The study also reveals that index returns will vary based on the valuation ratio at the point of entry.

Determinants of Share Prices of Agriculture Listed Firms

The stock market plays an important role in economic development by promoting capital formation and enhancing economic growth. The stock market is among the main sources of financing in the critical sector of the economy. Trading of securities on the Zimbabwe stock exchange facilitates savers and users of capital by fund pooling, risk sharing and transferring wealth. One of the important sectors of the Zimbabwean economy devoid of adequate financing is the agricultural sector. This sector has been experiencing several challenges over the period 2002 -2022 mostly from lack of sustainable finance especially from private investment. It is assumed that lack of funding is due to volatility of stock prices. The objective of the study is to analyze different factors affecting share price of agriculture sector listed firm on the Zimbabwe Stock Exchange using the panel regression model. Based on the random effect the study established that share prices are determined by earnings per share, price earnings ratio and return on equity positively impacts stock prices in Zimbabwe. The government should control inflation to ensure price stability to aid in easy financial planning. Further the governments should promote agricultural growth initiatives and strategies which would stimulate demand for agricultural oriented stocks.

Analysis of The Influence of Company Fundamentals on Stcock Prices During the Transition Period and After the Implementation of the Remote Tranding System on the Stock Excange Indonesia (Study in Banking)

This study aims to determine the effect of ROE (Return on Equity, (PER) Price Earnings Ratio, DER (Debt to Equity Ratio), NPL (Non - Performing Loans), and BOPO (operating costs of operating income) on banking stock prices during the transition period and after the implementation of remote trading system technology on the Indonesian stock exchange and also examines whether there is a difference in the effect of these independent variables on stock prices in the two periods. This research was conducted with quantitative methods and used secondary data. The number of samples in this study was 6 banking companies listed on the Indonesia Stock Exchange from 2006 - 2020, where the transition period was from 2006-2009 and the remote trading period was from 2010-2020. The data were analyzed separately in both periods using multiple linear regression models, a classical assumption test, and also the Chow Test as an additional test using the SPSS 25 tool. The results showed that during the transition period only DER had no significant effect and 4 (four) other independent variables; BOPO, NPL, PER, and ROE have a significant effect on stock prices, while during remote trading the DER and PER variables have no significant effect and 3 (three) other independent variables; BOPO, PER, and NPL have a significant effect. During the transition period, the independent variables simultaneously have the effect of 70.3% on the price, but during the remote trading period, the ability of the five independent variables is only 35.5% in explaining the rise/fall of stock prices. The results of the Chow test show that there are differences in the influence or structural changes in the influence of independent variables on stock prices and the regression coefficients. There are also differences where the independent variables during the transition period are all inelastic (e < 1) and vice versa during remote trading all coefficient values the regression is elastic (e > 1).

The Effect of Return on Asset, Earning per Share, Price Earnings Ratio, BI-Rate on Sharia Stock Prices Listed on Jakarta Islamic Index 70

The Effect of Return on Asset, Earning per Share, Price Earnings Ratio, BI-Rate on Sharia Stock Prices Listed on Jakarta Islamic Index 70

Do board characteristics matter in the relationship between intellectual capital efficiency and firm value? Evidence from the Nigerian oil and gas downstream sector

PurposeThe purpose of this study is to investigate the moderating effects of board characteristics such as board size, chief executive officer duality, number of board meetings, and diversity, on the relationship between intellectual capital efficiency and firm value in the Nigerian oil and gas downstream sector.Design/methodology/approachWe collected time-series cross-sectional data from eight (8) downstream-sector oil and gas companies quoted on the Nigerian Exchange Group for the period 2004–2020. We analysed the data using Prais–Winsten regression with panel-corrected standard errors.FindingsOverall, our results show no significant direct relationship between the modified value-added intellectual coefficient and our two measures of firm value (Tobin’s Q and Price Earnings Ratio (PER)). However, the board size is found to moderate the intellectual capital efficiency–PER relationship significantly and negatively, whereas board diversity significantly positively moderates the association between the modified value-added intellectual coefficient and PER. Our multi-theory framework, which blends clean surplus, agency, stakeholder, and resource-based theories is found to be relevant in underpinning this study.Research limitations/implicationsThe research relies on 17-year panel data for eight downstream-sector oil and gas companies. Consequently, future research within intellectual capital efficiency in Nigeria could incorporate related sectors like midstream and upstream to enable comparability and expand generalization.Practical implicationPolicymakers may adopt the study findings to serve as a robust empirical base to demand improved board diversity as a catalyst for boosting the potency of the intellectual capital efficiency-firm value relationship.Originality/valueFirstly, to the best of our knowledge, this study is the pioneer attempt to use board characteristics as moderators of the relationship between intellectual capital efficiency and firm value. Secondly, we develop and use a novel theoretical framework that combines clean surplus, agency, stakeholder, and resource-based theories to underpin the study.

Bombay Stock Exchange Portfolio Ranking using Combined Compromise Solution (CoCoSo) Method

One of the decision problems in the financial domain is portfolio selection in investor’s point of view on the other hand portfolio management is in management point of view ,in both the cases ranking of the portfolio will be required.. While facing the complex market competitions, under the extremely competitive business environment financial institutions try their best to make an ultimate policy for portfolio selection to optimize the investor returns. Multi criteria decision making (MCDM) is one of the techniques which can be applied in better way to evaluate portfolio performance and finally decide ranking of the portfolio based on the multiple conflicting criteria of the indices. A portfolio may have many criterion such as low ,high, dividend, yearly return, price earnings ratio (P/E),price-to-book ratio(P/B) etc.. In this research work a popular MCDM method: A combined compromise solution (CoCoSo) is applied to obtain the rank of portfolio for further decision making process. Data of ten portfolios of Bombay Stock Exchange (BSE) namely BSE SENSEX, BSE GREENEX,BSE CARBONEX, BSE AUTO, BANKEX, BSE ENERGY, HEALTHCARE,IT, Power, Gas and Oil financial years: 2022-23 are collected for the study and to find out best portfolio. After applying COCOSO method BSE SENSEX is found to be better than other portfolios as first rank consistently for all three financial years

Enzyme Activity Stoichiometry Suggests That Fertilization, Especially Nitrogen Fertilization, Alleviates Nutrient Limitation of Soil Microorganisms in Moso Bamboo Forests

Rational application of N fertilizer is essential for maintaining the long-term productivity of Moso bamboo forests. Microbial activity is a crucial indicator of soil quality. Changes in soil nutrient resources due to N addition can lead to microbial nutrient limitations, thereby impeding the maintenance of soil quality. Currently, there is limited research on the effects of N application on microbial nutrient limitations in Moso bamboo forest soils. To examine the changes in extracellular enzyme activity and microbial nutrient limitations in Moso bamboo forest soils following N application, we conducted an N application experiment in northern Guizhou. The findings revealed that the N3 treatment (726 kg·N·hm−2·yr−1) significantly reduced β-glucosidase (BG) activity by 27.61% compared to the control group (no fertilization). The N1 (242 kg·N·hm−2·yr−1), N2 (484 kg·N·hm−2·yr−1), and N3 treatments notably increased the activities of leucine aminopeptidase (LAP) and N-acetyl-β-D-glucosidase (NAG) by 11.45% to 15.79%. Acid phosphatase (ACP) activity remained unaffected by fertilization. N application treatments significantly decreased the C:Ne and C:Pe ratios, while the N:Pe ratio was less influenced by N fertilizer application. Scatter plots and vector characteristics of enzyme activity stoichiometry suggested that microorganisms in the study area were limited by C and N, and N fertilizer application reduced the vector length and increased the vector angle, indicating that N application alleviated the C and N limitation of microorganisms in Moso bamboo forests. Redundancy Analysis (RDA) demonstrated that microbial biomass phosphorus (MBP) was the most critical factor affecting extracellular enzyme activity and stoichiometry. Furthermore, Random Forest Regression analysis identified MBP and the N:Pm ratio as the most significant factors influencing microbial C and N limitation, respectively. The study demonstrated that N application modulates the microbial nutrient acquisition strategy by altering soil nutrient resources in Moso bamboo forests. Formulating fertilizer application strategies based on microbial nutrient requirements is more beneficial for maintaining soil quality and sustainably managing Moso bamboo forests. Additionally, our study offers a theoretical reference for understanding carbon cycling in bamboo forest ecosystems in the context of substantial N inputs.

Pengaruh Earning Per Share dan Price Earning Ratio Terhadap Return Saham Pada Perusahaan Industri Wood and Lumber yang Go Public di Bursa Efek Indonesia

The capital market is a vehicle that can mobilise long-term funds from the public to be channelled into productive sectors. The purpose of the capital market in Indonesia is not only to mobilise funds from the public so that they can be channelled into productive sectors, but also to realise income distribution through ownership of company shares. This goal can be achieved gradually with the increasing number and types of securities traded in line with the increasing number of institutions that support the implementation of the capital market. This study aims to determine the effect of earning per share and price earning ratio (PER) on stock returns in Wood and Lumber industry companies that go public on the Indonesia Stock Exchange for the period 2005-2007. The analysis method used in this research is multiple linear regression with SPSS version 12.0. The results of this study can be concluded that: (1) Earning per share has a positive effect on stock returns, because the significance value is smaller than 0.05 and one of the considerations of investors besides risk is the return they will get in the form of a share of net income distributed to shareholders, (2) Price earning ratio has no effect on stock returns, because the significance value is greater than 0.05.