Book Value Ratio Research Articles

PENGARUH PROFITABILITAS, INVESTMENT OPPORTUNITY SET (IOS), LIKUIDITAS DAN KEBIJAKAN DIVIDEN (Studi pada Perusahaan Sektor Consumer Goods di Bursa Efek Indonesia)

The purpose of investment done by investors in the capital market is to getreturn of said investment. Expectations of investors in investing is to obtaindividend payout ratio. dividend payout ratio can be determined by analyzingthe company's financial performance which is proxied by Return on Assets,Sales Growth, Market to Book Value and Current Ratio. Companies classifiedin consumer goods sector selected as the population used in this study arelisted on the Stock Exchange 2013-2016 period. Purposive sampling is usedto get the sample in this research using criterias and 12 companies or 48firm-years are the samples. This research is using multiple linear regression.Based on the results of the partial test (t test) on the real level (α) = 5% canbe seen that the variablel return on assets have a significant and positiveimpact on dividen payout ratio, Sales Growth, Market to Book Value andCurrent Ratio have no significant effect on dividen payout ratio.

Pengaruh Manajemen Laba Terhadap Nilai Perusahaan pada Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2015-2017

The purpose of this research is to analyze the effect of earnings management measured by real-based earnings management on company value that mesured by price to book value ratio. This research was conducted in some manufacturing companies listed on the Indonesia Stock exchange for period of 2015-2017. The sample was selected as many as 34 companies. The method of analysis uses associate descriptive analysis with simply linier regression analysis tools by testing classical assumption, testing hypotheses and coefficient of determination. Based on the results of the study found that earnings management as measured by real based earnings management affect the company’s value.

The Relationship between Economic Value Added with Liquidity and Returns in Companies Listed in Tehran Stock Exchange

Economic Value Added is one of the most useful measures for managers’ performance evaluation. Another economical criterion used for distinguishing between company’s market value and invested capital in the company is market value added. In this paper it has been tried to study the relationship between economic value added with liquidity and returns of listed companies in Tehran Stock Exchange. For this purpose we have a sample of 510 companies who have been present in exchange market during the years of 2005-2010. The companies selected for our sample are those which their financial statements are available for the mentioned period, their fiscal year hasn’t been changed during the above mentioned period, the end of their fiscal year is the same, i.e. the last month of each year in Iran and their stock have been traded during the mentioned years. With application the above mentioned conditions the number of research sample reduces to 98 companies. Liquidity and returns are dependent research variables, economic value added is independent variable and controlled variables include company size and the ratio of book value to market value of equity. In this paper the regression model has been used. The results of the research indicate that there is a positive and significant relationship between economic added value and stock liquidity. Also there is a significant and positive relationship between economic added value and returns. Finally the results indicate that there is a significant difference in the relationship between economic added value with liquidity in listed companies in Tehran Stock Exchange and returns.

PENGARUH KONSERVATISME TERHADAP ASIMETRI INFORMASI (STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR DI BEI)

The purpose of this study was to determine the effect of accounting conservatism on information asymmetry in the annual reports of companies listed on the Indonesia Stock Exchange.Target population in this study is a manufacturing company listed on the Indonesia Stock Exchange (BEI) with year observations from 2009 to 2011 the number of companies by 23 companies.Of accounting conservatism measurements conducted on 23 companies, the population of the obtained results of all companies that meet more than one measurement assumptions of accounting conservatism with market value to book value ratio greater than 1, so that the company can be classified as a conservative company. From the test results it can be concluded that the regression coefficient of determinant (R2) value 0.240 indicates that accounting conservatism is able to affect the asymmetry of information in the annual reports of companies listed on the Indonesia Stock Exchange amounted to 24.0 percent and the remaining 76.0 percent is influenced by other variables outside of the research model. Piecemeal evidence suggests that accounting conservatism variable regression coefficient of -0.474, (β ≠ 0), meaning that in partial accounting conservatism and significant negative effect of the information asymmetry in the annual reports of companies listed on the Indonesia Stock Exchange. Refers to the requirement that the results of the study reject Ho and accept Ha. Keywords: Accounting Conservatism and Information Asymmetry

Investigation of the Effect of Financial Ratios on Market Value / Book Value Ratio by Panel Data Analysis: Application in BIST Registered Weaving, Garment and Leather Sector

Investigation of the Effect of Financial Ratios on Market Value / Book Value Ratio by Panel Data Analysis: Application in BIST Registered Weaving, Garment and Leather Sector

Nexus between sustainability management and financial performance - study on manufacturing firms from global emerging market

The objective of this study is to identify and analyse the causal relationship between a firm's sustainability management practices and its financial performance in global emerging economies. This study includes Granger causality and regression analysis of panel data of seven years for 119 manufacturing firms on environment, social and governance (ESG) indicators and measures for financial performance, i.e., ROA, ROE, price to book value and debt equity ratio. Through this study, we found that ESG factors hurt the financial performance of firms, but the vice-versa is may not true. Implications and future research have been suggested based on our observations.

Nexus between sustainability management and financial performance - study on manufacturing firms from global emerging market

The objective of this study is to identify and analyse the causal relationship between a firm's sustainability management practices and its financial performance in global emerging economies. This study includes Granger causality and regression analysis of panel data of seven years for 119 manufacturing firms on environment, social and governance (ESG) indicators and measures for financial performance, i.e., ROA, ROE, price to book value and debt equity ratio. Through this study, we found that ESG factors hurt the financial performance of firms, but the vice-versa is may not true. Implications and future research have been suggested based on our observations.

Macro Governance and Profitability around the World: A Methodological Improvement

There is a multitude of country studies between 2000-2018 that focus upon the relationship between corporate governance and profitability, with mixed results because studies have generally focused upon historic book value ratio measures of profitability such as Return on Assets (ROA) and Return on Equity (ROE), rather than based on market values. Thus, the purpose of this paper is to examine the effect of macro governance environments upon aggregate dividend yield and earnings per share for developed and emerging stock markets as measures of profitability and to provide a useful methodology for correctly incorporating risk measures in a more controlled manner than many current papers undertake. Using an augmented version of the dividend growth model and allowing for the control of risk factors, we find that macro governance environments have a significant influence upon dividend yield and earnings per share. The results have policy implications for government policy setters as improvements to governance environments may induce portfolio equity inflow, which is increasingly seen as a driving force for economic growth. Future research papers should use our methodology to better model firm profitability and corporate governance within a market value context and recognise the limitations of ROE and ROA as they rely upon less relevant book market values. Further, studies need to better capture interaction effects between macro (country-specific) and micro (firm-specific) governance.

Accounting rules and value relevance: A new perspective from the Italian market

The purpose of this study is to question the basic assumption of the higher value relevance (meaning its superior ability to represent the value of assets and liabilities) of the International Accounting Standard (IAS-IFRS), as compared to Italian accounting practices. Value relevance refers to the vast literature which investigates if and how financial data includes useful information for investors; in other words, if it represents a robust basis for their investment decisions. Analyzing both Anglo-Saxon and other European countries, the literature shows a heterogeneous scenario and divergent results. Unlike previous studies, this study links market and book values by means of the price to book value ratio, considering a sample of Italian listed companies on the Mercato Telematico Azionario, the main segment of the Italian Stock Exchange. Moreover, to strengthen the empirical results the research takes into account a longer period (1996-2015), bearing in mind the change in Italian accounting practices occurring in 2005 as a result of the adoption of IAS-IFRS. The study is consistent with that part of the literature which argues that the accounting discipline underlying IAS-IFRS shows a discrepancy between its theoretical purpose of expressing the current value of a company and its applicable accounting standards. In this respect, the results obtained are somewhat different from the mainstream view, suggesting that the introduction of the IAS-IFRS does not contribute to reducing the gap between the stock market capitalization and the respective book value of a company. Therefore, the Italian national accounting discipline, based on conservative accounting, quite surprisingly appears more value relevant; in other words, it seems to be more able to capture the business value assumed by investors

PENGARUH KEPEMILIKAN MANAJERIAL DAN KEPEMILIKAN INSTITUSIONAL TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN SEKTOR INDUSTRI BARANG KONSUMSI DI BEI

The main objective of a business company is to increase the company value shown by the stock price, but the agency conflict can be an obstacle to achieving it. Managerial ownership and institutional ownership are expected to reduce the negative impact of the conflict. This study aims to determine the influence of managerial and institutional ownership on company value. Managerial ownership and institutional ownership measured by percentage of the share ownership of management and institutions in the company. Company value measured by Price to Book Value ratio. This study was conducted by taking a sample of 60 companies in 2016 and 2017. The result of this study shows that managerial ownership do not affect the company value and institutional ownership do not affect the company value.Keywords: Managerial Ownership, Institutional Ownership, Company value

The effect of corporate social responsibility and ownership structure on firm value in food and beverage companies in south east Asia

This study aims to analyze the influence of corporate social responsibility (CSR) and ownership structure towardfirm value. The independent variable thatused in this study are corporate social responsibility (CSR), institutional ownership, managerial ownership and foreign ownership. The dependent variable that used in this study is firm value which measured by Price to Book Value (PBV) ratio. The sample of this study were taken from several food and beverages companies in Shoutheast Asia that registered in www.orbis.bvdinfo.com which published annual report and annual stock data in 2014-2016.A multiple regression analysis with SPSS 22.0 For Windows was used as the technique data analysis. The result of this study explain that corporate social responsibility (CSR), institutional ownership and managerial ownership have influence to firm value, while foreign ownership does not have influence to firm value.

ANALISIS PENGARUH STRUKTUR MODAL, KEBIJAKAN DIVIDEN, DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN (STUDI PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2012-2014)

Firm’s value became one of the orientation of the company other than the maximization of profit. High firm’s value will make the market believe t hat the performance and prospects of the company in the future is very good. Maximizing firm’s value is very important for the company, because it can maximize shareholder wealth reflected in the company's stock price. Price to Book Value (PBV) measures the value given to the management of financial markets and corporate organizations as the company continues to grow. Price to Book Value Ratio is the ratio between the market value of the shares according to the book value of the equity of the company. The book value is calculated as the quotient between shareholders with the number of shares outstanding. Therefore, the higher the value of PBV, the firm's value will be higher. This research was conducted to examine the effect of several variables expected to influence firm’s value, namely: capital structure, dividend policy, and firm size. The object of this research is manufacturing companies that have been listed in the Indonesia Stock Exchange (BEI) from 2012-2014. Sampling technique used is purposive sampling. The data were analyzed with Overall Fit valuation, descriptive analysis, f-test, t-test, and R² test. The results of this research showed that in the period 2012-2014, capital structure variable and dividend policy variable have a positive and significant influence on Firm’s Value. Meanwhile, firm size variable have no effect on Firm’s Value. Keywords: Capital Structure, Dividend Policy, Firm Size, Firm’s Value, Price to Book Value.

Factors Affecting Earning Per Share: The Case of Indonesia

The main aim of this study is to examine if financial factors such as Return on Assets, Price to Book Value and Debt Equity Ratio have any influence on the Earning Per Share. The analysis is focusing on the manufacturing sector of Indonesia using companies indexed in the Indonesian Stock Exchange. The results showed that there is an influence of Price to Book Value on Earning Per Share as well as of Debt Equity Ratio to Earning Per Share. The coefficient of determination is relatively high supporting the results.

Analisis Pengaruh Faktor Fundamental Terhadap Return Sahma (Studi Empiris pada Perusahaan Perbankan yang Terdaftar di BEI Periode 2013-2017)

This study aims to analyze the influence of Fundamental Factors consisting of Earning Per Share (EPS), Price to Earning Ratio (PER), Price to Book Value (PBV) and Dividend Payout Ratio (DPR) to Stock Returns both partially and simultaneously on Banking companies listed on the Indonesia Stock Exchange during the 2013-2017 period. Sampling was carried out using purposive sampling technique. The research method used is a quantitative method with descriptive and verification approaches. The results showed that partially there is significant influence from Price to Earning Ratio (PER) and Dividend Payout Ratio (DPR) to Return stock but there is no significant influence of the Earning Per Share (EPS) and Price to Book Value (PBV) of the Stock return . While the research results is simultaneously a significant influence on the Earning Per Share (EPS), Price to Earning Ratio (PER), Price to Book Value (PBV) and Dividend Payout Ratio (DPR) to Return stock.

PENGARUH DEBT TO EQUITY RATIO (DER), RETURN ON ASSETS (ROA), RETURN ON EQUITY (ROE), DAN DIVIDEND PAYOUT RATIO (DPR) TERHADAP PRICE TO BOOK VALUE (PBV) PADA PERUSAHAAN LQ45 YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2010-2013

Price to Book Value (PBV) or the price per book value ratio is the relationship between the stock market price and book value per share. This ratio indicates the company's ability to create value relative to the amount of capital invested. The higher PBV companies create value for shareholders. This ratio is also used as an indicator in determining the value of shares as consideration for investors in determining investment decisions. This study aimed to examine the effect of the variable Debt to Equity Ratio (DER), Return on Assets (ROA), Return on Equity (ROE), and Dividend Payout Ratio (DPR) to the Price to Book Value.The population in this study is LQ45 categories listed companies in Indonesia Stock Exchange 2010-2013 period as many as 78 companies with sampling using purposive sampling and samples that meet the criteria are as many as 13 companies. The data in this study using panel data regression analysis (fixed effect) is applied with software Eviews 7.1. and hypothesis testing using t-statistic to test the partial coefficient of regression and f-statistic to examine the effect simultaneously with a significance level of 5%.The results showed that the variables PBV DER significantly influence the value of 0.01. ROA variables significantly influence the PBV with a significance value of 0.00. ROE significantly influence the PBV with a significance value of 0.04. But the House did not influence significantly the variables with a significance value of 0.95. Predictive ability of the four variables to the PBV is at 99% as indicated by the R-Squared of 99% while the remaining 1% is influenced by other factors not included in the model study.Keywords: Debt to Equity Ratio (DER), Return on Assets (ROA), Return on Equity (ROE), Dividend Payout Ratio (DPR), and Price to Book Value (PBV).

Corporate Governance and Financial Performance in Nepal

This paper analyzes the factors that affect corporate governance and influence on financial performance of Nepalese firms for theperiod of fiscal year 2009/10 to 2015/16 using descriptive and causal comparative research design. The profit margin and return on assets are dependent variables usedto measure financial performance and corporate governance and firm related variables such as corporate governance index, age of firms, size of assets, debt ratio, market to book ratio and ownership concentration are considered as explanatory variables. The result of this paper reveals thatprofit margin and return on assets of firms are positively related with age, market to book ratio and overall corporate governance index which implies that higher age, market to book ratio and corporate governance increase financial performance of Nepalese firms. Further, the regression result of the study shows that size of assets and debt ratio have negative effect and ownership concentration has no relationship with firms’ financial performance. Finally, result of this paper concludes that corporate governance, market to book value ratio, age, size of assets and debt ratio have strong explaining power of financial performance of Nepalese firms.NCC JournalVol. 3, No. 1, 2018, Page: 108-120

Exploring the Relationship between Financial Ratios and Market Stock Returns

This paper explores the relationship between financial ratios and market stock returns of 26 Qatari listed firms from 2009 to 2015. The results of Weighted Least Square (WLS) show that earnings per share, earnings yield ratio, and dividend yield ratio have significant and positive relationship with market stock returns while market to book value ratio, return on assets, return on equity, price to earnings ratio, dividends earnings ratio, and net profit margin have insignificant relationship with market stock returns. The implications will be for policymakers of government in selecting and deciding their policies. It will also be for investors and managers to make better decisions.

Pengaruh Modal Intelektual pada Rasio Price to Book Value

The purpose of this research is to examine the effect of intellectual capital consisting of value added capital employed (VACA), value added human capital (VAHU) and structural capital value added (STVA) on price to book value ratio. This study uses secondary data from all companies listed on the Indonesia Stock Exchange in 2016 with a population of 539 companies. The method of determining the sample is simple random sampling with the determination of the number of samples using Slovin formula that gives 230 companies. Hypothesis testing in this research is done by multiple linear regression analysis technique with a significance level of 5 percent (0.05). The analysis results show that VACA and STVA have a positive effect on price to book value ratio, while VAHU has no effect on price to book value ratio. Suggested for the company, should pay attention to the management of capital employed and structural capital so that resources are used effectively and can create value added for the company.

Earning on Response Coefficient in Automobile and Go Public Companies

This study aims to analyze factors that influence earnings response coefficients (ERC), simultaneously and partially, composed of leverage, the systematic risk (beta), growth opportunities (market to book value ratio), and the size of the firm (firm size), selection of the sample in this study the author take 12 automakers and components that meet the criteria of completeness of the data from the year 2008 to 2012, entirely based on consideration of the following criteria: (1) the company's automotive and components are listed on the stock exchange, (2) have the financial statements years 2008-2012 (3) has a return data (closing price) the first day after the date of issuance of the financial statements. This study uses secondary data applying multiple linear regression models to analyze and test the effect of independent variables on the dependent variable partially (t-test), simultaneous (f-test), and the goodness of fit (R-square) on a research model. The result shows that leverage, beta, growth opportunities (market to book value ratio) and size along with (simultaneously) the effect on the dependent variable (dependent variable) earnings response coefficients. Partially leverage negatively affect earnings response coefficients, partially beta negatively correlated earnings response coefficients, partially growth opportunities (market to book value ratio) significant effect on earnings response coefficients, partially sized companies (firm size) significantly influence earnings response coefficients.Keywords: earnings response coefficients, leverage, systematic risk (beta) Growth opportunities, size of the company

Analysis of the determinants of dividend policy: evidence from manufacturing companies in Tanzania

This paper examines the determinants of dividend policy of manufacturing companies listed on the Dar es Salaam Stock Exchange in Tanzania. Two measures of dividend policy namely, dividend yield and dividend payout are examined over the 2008-2016 period. In addition, three proxies of profitability namely return on assets ratio, return on equity ratio, and the ratio of earnings per share are applied in separate specifications. Similarly, investment opportunities are measured using the ratio of retained earnings to total assets and market to book value ratio. Other explanatory variables are liquidity, business risk, firm size, firm growth and gearing ratio. For inferential analysis, 12 regression models are specified and estimated depending on the measurements of dividend policy, profitability, and collinearity between retained earnings to total assets and market to book value ratios. Empirical results show that the determinants of dividend policy vary across the proxies of dividend policy, profitability and investment opportunities. On one hand, return on equity, retained earnings to total assets ratio, market to book value ratio, business risk and size of the firms tend to have a significant effect on dividend yield. On the other hand, liquidity, business risk, and retained earnings to total assets ratio seem to affect dividend payout. Meanwhile, return on asset ratio tends to have an effect on both dividend yield and dividend payout when excluding liquidity in the regression models. Overall, dividend yield as a measure of dividend policy and return on equity as measure of profitability provide better results. The main implication of these results is that managers should consider the major determinants of dividend yield ratio while formulating the appropriate dividend policy for a firm.