Value Stocks Research Articles

Do executive facial trustworthiness have impact on IPO underpricing in the Indonesia stock exchange?

PurposeThis study aims to investigate the impact of facial-based perceived trustworthiness on stock valuation, particularly, in the initial public offering (IPO). IPO settings provide the opportunity to investigate whether information asymmetry resulting from company newness in the market would influence the incorporation of soft information in the form of executive facial trustworthiness in stock valuation.Design/methodology/approachWe use a recent machine learning algorithm to detect facial landmarks and then calculate a composite facial trustworthiness measure using several facial features that have previously been observed in neuroscience and psychological studies to be the most determining factor of perceived trustworthiness. We then regress the facial trustworthiness of IPO firm executives to IPO underpricing.FindingsUtilizing machine learning algorithms, we find that the facial trustworthiness of the company executive negatively impacts the extent of IPO underpricing. This result implies that investors incorporate the facial trustworthiness of company executives into stock valuation. The IPO underpricing also shows that the cost of equity is higher when perceived trustworthiness is low. With regard to the higher information asymmetry in IPO transactions, such a negative impact implies the role of facial trustworthiness in alleviating information asymmetry.Originality/valueThis study provides evidence of the impact of top management personal characteristics on firms’ financial transactions in the Indonesian context. From the perspective of investors and other fund providers, this study shows evidence that heuristics still play an important role in financial decision-making. This is also an indication of investor reliance on soft information. Our research method also provides a new opportunity for the use of machine-learning algorithms in processing non-conventional types of data in finance research, which is still relatively rare in emerging markets like Indonesia. To the best of our knowledge, our study is the first to use personalized measures of trust generated through machine-learning algorithms in IPO settings in Indonesia.

ESG Impact on Stock Valuation- An Empirical analysis of European Markets

ESG Impact on Stock Valuation- An Empirical analysis of European Markets

Assessment of Soil Carbon Stock Potential in Different Soil Layers of Grassland Ecosystems

Mostly soil carbon stock research is done in areas with natural vegetation, ignoring university campuses. This study assesses soil carbon stocks in different soil layers of grassland ecosystems within the Bharathiar University campus in Tamil Nadu, India. Soil samples were collected from grasslands in four sections (namely, East section, West section, North section, and South section) of the campus and analyzed for carbon content across depths of 0-10cm, 10-20cm, and 20-30cm. Results indicate soil carbon stocks in grassland ecosystems ranging from 1.36% to 2.26%, with notable variations observed among campus sections and soil layers. One-way ANOVA revealed that there is a significant variation in soil carbon stock values among the four sections in the 20-30cm layer (F(3,16)=3.865, p<0.05), but not for the 0-10cm layer (F(3,16)=1.454, p>0.05) and the 10-20cm layer (F(3,16)=3.011, p>0.05). Pearson’s Correlation analysis revealed that the soil carbon stock had no significant relationships with soil pH, Conductivity, and total dissolved solids at all four sections of the university campus, except for a positive correlation between soil carbon stock and total dissolved solids at the East section (r=0.563, p<0.05), and between soil carbon stock and soil pH at the South section (r=0.550, p<0.05). These findings underscore the complexity of soil carbon dynamics in grassland ecosystems of university campuses and emphasize the potential for localized assessments to inform sustainable land management strategies. This study contributes valuable insights into enhancing carbon sequestration efforts at the university campus, useful for global climate change mitigation. Integrating such localized findings into broader environmental policies can optimize carbon management strategies across similar ecosystems globally.

The Effect of Return on Assets, Current Ratio, Total Asset Turnover, and Debt to Equity Ratio on Stock Prices

The purpose of this study is to investigate the impact that ROA, CR, TATO, and DER have on the stock prices of oil and gas companies that are listed on the IDX between the years 2015 and 2022. In 2022, the stock prices of eleven oil and gas businesses that were included on the IDX fell. Those who suffered the most were Akra and Apexindo Pratama Duta. In spite of the fact that AKRA's ROA increase from 4.83% to 9.12% in 2021–2022, the company's shares fell. Between the years 2015 and 2022, the prices of petroleum and natural gas stocks on the IDX were impacted by carbon reduction (CR), taxation (TATO), and demand-to-recovery (DTR strategies). Some researchers, including Kasmir and Sumarsan, discovered that ROA increases stock prices whereas DER decreases them. There is a comparison made between mining stock prices, ROA, ROE, NPM, and DER. The abstract of the Indonesian oil and gas stock price demonstrates how the success of a company's finances influences market prices. A non-random selection of six organizations was made for the study based on certain criteria. Balance sheets, income statements, equity statements, and cash flow statements that have been audited are evaluated using descriptive and verification statistical analysis. It would appear that the ROA T-statistic of X1 does not have any effect whatsoever on the values of stocks. When it comes to the most important T-statistic, the value 422 is lower than the confidence level of 95%. X2 represents the current ratio, X3 represents the total asset turnover, and X4 represents the debt to equity ratio. All three of these ratios are related to stock values. This is due to the fact that their T-statistics are increased in comparison to the primary T-statistic.

The Influence of Profitability and Stock Value on Company Value With Dividend Policy as an Intervening Variable (Empirical Study of Garment Companies Listed on the Idx for the 2018-2022 Period)

This research was conducted on garment companies listed on the IDX for the 2018-2022 period with the aim of analyzing the influence of profitability and share value on company value which is mediated by dividend policy. The research population was 5 garment companies and the number of observations made was 25 observations over five periods from 2018-2022. The data sources used are secondary data and data collection techniques use documentation. The data analysis technique uses the classic assumption test, hypothesis test and Sobel test. The results of the research conducted show that profitability and the value of company shares do not partially have a significant effect on dividend policy in garment companies listed on the BEI, profitability and the value of company shares partially have a significant effect on the value of garment companies listed on the BEI, dividend policy has a significant effect on company value the garment is listed on the IDX. Dividend policy does not mediate the influence between profitability and share value and the value of garment companies listed on the IDX.

Pengaruh Penghindaran Pajak dan Kinerja Keuangan Terhadap Nilai Perusahaan dengan Ukuran Perusahaan Sebagai Variabel Moderasi

Maintaining and increasing company value is a crucial element in business competition, where owners and investors measure success through stock value and financial performance. This study analyzes the elements that affect the value of companies in the consumer non-cyclicals sector on the Indonesia Stock Exchange for the period 2018-2022. The results show that tax avoidance and financial performance influence company value, while company size moderates the impact of tax avoidance but does not moderate the impact of financial performance on company value. The study also reveals that although tax avoidance is legal, it can reduce investor confidence if not accompanied by information transparency. This study has several limitations, such as the sample being limited to the consumer non-cyclicals sector on the Indonesia Stock Exchange and the observation period of five years, which includes the pandemic period. The variables used in this study are also limited, which may not cover all factors affecting company value. Therefore, further research with a broader scope and additional variables is needed for more comprehensive results. In a broader context, this study emphasizes the importance of financial information transparency and compliance with tax obligations in maintaining investor confidence. Companies need to manage finances effectively and efficiently to achieve optimal performance and increase company value, which will ultimately attract investor interest and trust.

Stock Valuation of PT. Panca Budi Idaman, Tbk. (PBID) based on Free Cash Flow to the Firm and on Relative Valuation

The stock valuation of PT Panca Budi Idaman, Tbk. (PBID), an Indonesian plastic packaging manufacturer, is evaluated using the absolute and relative valuation. The absolute valuation is based on Discounted Cash Flow (DCF) method. In relative valuation, PBID is compared to its peers, which in this study are IPOL, PDPP, and TRST. Indonesia’s significant economic growth and the vital role of the plastic industry are noting strong demand for plastic packaging despite environmental challenges and regulatory pressures. Financial performance from 2017 to 2023 is assessed through profitability, liquidity, and solvency ratios, demonstrating PBID’s efficient operations and robust financial health. Future cash flows are projected, discounted using PBID’s Weighted Average Cost of Capital (WACC), and the terminal value is calculated. The intrinsic value is estimated at IDR 3,987 per share, indicating undervaluation compared to the current price of IDR 1,325 per share. Relative valuation compares PBID to industry peers using EV/EBITDA, P/E, and P/B ratios, reinforcing the undervaluation finding. Investment recommendations suggest PBID’s stock as a buying opportunity due to its strong market position and favourable valuation metrics.

The Impact of Financing Structure on Common Stock Prices

The pricing of common stock is significantly influenced by the financing structure. The cost required for businesses to secure outside funding in order to support their operations and projects is referred to as their financing structure. This expense could include interest on debt and investor returns on capital contributed to the business. A high cost of financing structure will raise the cost of capital and lower the value of common stock. The interest expenses incurred on debt mean that the cost of the financing structure will have an impact on the profits of the company. The required return will rise in the event that financing costs are high, which will lower the valuation of the company and possibly lower the price of common stock. Through its effects on the cost of capital, the profits of the company and valuation, and the demand for stocks, the cost of financing structure has a direct and indirect impact on the price of common stocks. It should be mentioned that other elements, such as political and economic ones, business performance, and rivalry in the market, also have an impact on the price of common stock.

Impact of Fundamental Factors on Share Price of Non-life Insurance Companies in Nepal

The aim of this research is to ascertain the direction in which fundamental factors impact Nepali non-life insurance businesses' stock values. This paper examines all twelve Nepal Stock Exchange (NEPSE)-listed non-life insurance companies using a quantitative, analytical, and descriptive research methodology. Nepal Rastra Bank, the Ministry of Finance and the insurance firms' websites served as secondary sources of information. The results has indicated that two significant elements affecting stock prices are the Price-to-Earnings (P/E) Ratio and Earnings Per Share (EPS). The Market Price of Shares (MPS) and EPS have the most positive association (r = 0.606, p < 0.01), whereas the P/E Ratio and EPS have the least positive correlation (r = 0.400, p = 0.003). Dividend per share (DPS) and MPS do not have a statistically significant link (B = 0.738, p = 0.854), whereas book value per share (BVS) and MPS have a marginally significant but positive correlation (B = 1.874, p = 0.061). The stock prices of the organizations in Nepal are significantly influenced by the EPS and P/E ratios. These findings suggest that higher P/E and EPS ratios are associated with better returns for investors. While DPS has minimal effect on stock prices, governments should make accurate and transparent financial reporting a priority to help investors. This paper analyzes the financial variables influencing the pricing of Nepalese non-life insurance stocks and offers advice on investment strategy and policy development. Int. J. Soc. Sc. Manage. Vol. 11, Issue-3: 76-82.

Allometric equation of Paraserianthes falcataria (L.) and Anthocephalus cadamba Miq. for estimating carbon stocks

Coal mining can increase land degradation and deforestation, so efforts are needed to ensure land use in post-mining areas. Therefore, mining companies must carry out land reclamation to restore the important function of forests by planting sengon laut (Paraserianthes falcataria (L.)) and burflower tree (Anthocephalus cadamba Miq.). In contrast to mining, which produces emissions and carbon that contribute to global warming, land reclamation helps absorb carbon and produce oxygen for living things. Therefore, a study was carried out to estimate the carbon stocks from reclamation activities at PT. Indobara Borneo. A quantitative approach through Stratified Random Sampling was applied in this study. Carbon estimation is carried out using allometric equations. The allometric equation of Paraserianthes falcataria (L.) is Y = 0.028D2,695, while the allometric equation of Anthocephalus cadamba Miq. is Y = 0.035D2,600. The total carbon stocks for burflower tree plants are 84.51 tons/ha with a CO2 sink potential of 974.73 tons/Ha, while the total carbon stocks for sengon laut plants are 86.18 tons/ha with a CO2 sink potential of 1355.49 tons/ha. The value of CO₂ sink and carbon stock indicates that there are environmental services to restore and improve vegetation.

Financial Management: Fundamental Factors Against Stock Prices on the Indonesia Stock Exchange

This study aims to analyze internal fundamental factors that affect the share prices of consumer industry companies listed on the Indonesia Stock Exchange against stock prices for the period 2013 – 2022. The population in this study is annual financial statements, while the samples used are balance sheets, financial statements, income statements, financial statements, and other reports for the last 10 years. The methods used are multiple linear regression test analysis, coefficient of determination, partial t- test, and simultaneous F test, using SPSS. The results showed that the adjustment value of the R square coefficient of determination was 0.874, which means that the independent variable affects the dependent variable by 87.4% and the remaining 12.6% is influenced by other variables outside this study. The results of Test F prove that there is a simultaneous influence of fundamental factors on Stock Price, while the results of Test t prove that some fundamental factors on Stock Price have no effect. The recommendation for the next researcher is to add variables, the scope of research is further expanded, and for investors to pay attention to the stock price and value of the Company.

Investigation of inventory management practices at m. products bakery and confectionary limited

Managing stock effectively is important for any organization, running a bakery firm is no exception because without enough stock, services to the customers will come to an abrupt stop. M. Products Bakery and Confectionary Limited provides services for 24 hours and accordingly, needs to keep stock of certain materials and other supplies in order to fulfill its duties effectively. It is generally held opinion that where stock management is poor, it greatly affects the company’s operations as well. Hence this study investigated the Inventory management Practices, M. Products Bakery and Confectionary Limited taken as a case study. A sample of 50 respondents was selected for the study. Questionnaires, interviews and observation were used in attaining data from respondents. The study revealed that the company ensured lean inventory management systems and strategic supplier optimization and most importantly the use of inventory recording technique (stock valuation using FIFO, inventory and issue methods) to manage its inventory. The study also revealed that the company had a computerized system as an inventory management practice but it had no existing inventory model. The study revealed that Inventory Management Practices have impacted on the company’s operations, profitability and the ability of the company to meet customer demand. However, among the gaps within the inventory management practices at M. Products Bakery and Confectionary Limited was limited space, delayed orders from suppliers leading to insufficient inventories, poor quality products from suppliers, bureaucratic process in procurement, purchase of raw materials with early expiration date, increased damages due to poor handling during production, overstocking/under stocking, weak management system , lack of training of the employees and un qualified employees, use of manual inventory management system in some departments, scattered storage facilities and poor transportation mechanism (resulting into spoilage of materials), theft and attacks from rats which reduces the amount of inventory available for sale, reduced demand from some customers especially during the covid19 outbreak and heavy taxes from the government. It was therefore recommended that there is need to expand on its production facility and also adopt advanced warehouse techniques, management to emphasize the importance of inventory management, company should improve its relationship with its suppliers, adopt accurate forecasting techniques, should train more executives and employees and also adopt an advanced information system such as Electronic Data Interchange.

Prediksi Harga Saham PT. Unilever Indonesia TBK Dengan Metode Regresi Linier Sederhana

The world of investment is a dynamic market characterized by its fluctuations, including changes in stock values. This research is motivated by the need to predict stock prices with high accuracy to support more precise investment decision-making. PT. Unilever Indonesia Tbk is one of the leading companies in Indonesia, and thus, forecasting its stock prices holds strategic value for investors. However, predicting stock prices is a complex task influenced by various economic and company-specific factors. This study aims to analyze the effectiveness of the simple linear regression method in forecasting the stock prices of PT. Unilever Indonesia Tbk. The results show that this method can produce accurate predictions, with a forecasted value of Rp 2,707 and a Mean Absolute Percentage Error (MAPE) of 2.65%. The application of this method has significant contributions in the investment world, where accurate stock price predictions can assist investors in determining the optimal timing for investment transactions.

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.

Research on Stock Selection Strategies Based on the Basic Value of Stocks Based on Buffett's Theory

The paper presented is highly significant as it explores the applicability and effectiveness of Warren Buffett's stock value investing theory in China's A-share market. By employing five key indicatorsdividend yield, debt-to-asset ratio, ROE, net profit growth rate, and the 200-day moving average (MA200), the paper attempts to adjust the values of these indicators to construct a model. This model is tested on the Chinese A-share market to verify its universality and effectiveness. Ultimately, the author concludes that the stock value investing theory is practical in the Chinese market, although the numerical values differ significantly from those recommended in traditional Western literature. Specifically, the return on equity (ROE) within a specific parameter range yields better returns, which are a quarter lower than the values mentioned by Buffett; the forecasted net profit growth rate for the coming year shows a slight negative correlation with excess returns within a certain range; and the latest balance sheet debt-to-asset ratio and dividend yield are positively correlated with excess returns within a specific range.

The Carbon Stocks Estimation on Tangga Community Forests of Lombok Utara

Forests are one of the largest carbon dioxide absorbers, the forest's function as a carbon dioxide absorber causes an increase in greenhouse gases in the atmosphere, and carbon dioxide is stored in forest biomass. Forest development to increase carbon dioxide absorption can be carried out in state forest areas or private forests, which also include community forests. This research aims to estimate carbon stocks in the Tangga community forest (HKm) , in the Tangga HKm, Lombok utara, NTB. This research uses quantitative methods. The data collected is standing vegetation data. Standing vegetation data includes saplings, poles and trees by measuring diameter and height using purposive sampling collection techniques. Carbon stocks are estimated using the allometric equation formula. The total carbon reserves in the HKm Tangga obtained from each stand were 9.972,11 ton/ha. The highest carbon stock value is at the tree level with a value of 8.785,08 tons/ha, followed by the sapling level at 731,34 ton/ha, and the pole level at 455,69 tons/ha with the highest amount at the candlenut tree level (Aleurites moluccana) at 2.200,63 ton/ha and the lowest was the breadfruit (Artocarpus altilis) with a value of 1,96 ton/ha.

High‐beta stock valuation around macroeconomic announcements

AbstractWe document a dramatic swing of high‐beta stock returns around pre‐scheduled macroeconomic announcements—from being negative on the day before, to positive on the day of, and negative again on the day after the announcements. A feasible long‐short strategy of betting against beta (BAB) and betting on beta (BOB) yields annualized 25.28% return over the 3‐day announcement window. We explore potential explanations based on liquidity, risk, and investor risk appetite. Our results show that changes in liquidity, risk, and investor risk appetite around the announcements at best partially account for variations in high‐beta stock returns. The finding of our study highlights the dynamic effect of macroeconomic announcements on asset prices.

Desde los estados financierosmicrocontables hacia la macro contabilidad. Un modelo basadoen el measurement approach

The nomenclature in national, public, and financial account-ing, while sharing a common noun, has yet to explore potential synergies. despite accounting’s capacity for powerful analysis at micro and macro levels, the persistent microaccounting-macroaccounting dichotomy limits these synergies. Despite modest reception, scholars have explored con-verging Accounting into a comprehensive discipline, emphasizing inter-connections between macro and micro levels. This study presents a conceptual model spanning micro, meso, and macro fundamental accounting identities. Employing abstract concepts like Di-chev and Tang (2008), Dichev (2008, 2017), and Miller & Bahnson (2010), it organizes economic value stocks and flows from micro to macro levels. Aligned with Scott’s concept of accounting under ideal conditions (2015), it’s grounded in beaver’s measurement approach (1989). The study con-firms, through micro accounting consolidation, that only real assets con-stitute society’s concrete capital. It outlines cyclic dynamics of rental phe-nomena from diverse assets, accruing rental values at each aggregation level. This analytical approach aids understanding accounting’s nature and identifies avenues for future research, including empirical estimation and periodic reassessment of abstract categories.

A bootstrap dynamic multivariate panel Granger causality analysis to examine the relationship between the COVID-19, Delta and Omicron pandemic era and the maritime shipping freight industry

This work applies a bootstrap multivariate panel Granger causality test to examine the causal relationship between the coronavirus disease 2019, Delta and Omicron pandemic eras and the maritime shipping freight industry across 15 Chinese marine transportation freight stocks through the data from Jannuary 23, 2020 to December 6, 2022. After accounting for both dependency and heterogeneity across these industries, we find support for six of the 15 maritime shipping freight enterprises which display a unidirectional Granger relationship between stock returns and pandemic-related shocks and five of them which demonstrate a bidirectional association. On the other hand, the stock values of three firms in this cohort Granger “lead” the epidemic, suggesting that the adjustment of expectations to external shocks and the efficient market hypothesis could elucidate apparent causal connections. The empirical findings of this work provide important policy implications for the maritime shipping freight industry.

Effect of Interest Rate Changes on Stock Market Volatility in Congo

Purpose: The aim of the study was to assess the effect of interest rate changes on stock market volatility in Congo. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Changes in interest rates have a notable impact on stock market volatility. When central banks adjust interest rates, it influences investor sentiment and economic forecasts. Typically, an increase in interest rates makes borrowing more expensive, which can dampen corporate profits and economic growth, leading to higher market volatility as investors reassess the value of stocks. Conversely, a decrease in interest rates generally lowers borrowing costs, potentially boosting corporate earnings and economic expansion, which can initially reduce market volatility. However, the long-term effects might differ as lower rates can also lead to overvaluation concerns, eventually increasing volatility. Additionally, interest rate changes signal monetary policy shifts and broader economic conditions, further influencing investor behavior and stock market dynamics. Overall, interest rate fluctuations are a critical factor contributing to stock market volatility through their direct and indirect effects on economic activities and investor perceptions. Implications to Theory, Practice and Policy: Efficient market hypothesis, portfolio theory and behavioral finance theory may be used to anchor future studies on assessing the effect of interest rate changes on stock market volatility in Congo. For practical implications, investors and financial institutions should develop risk management strategies that account for the short-term volatility spikes following interest rate announcements. From a policy perspective, policymakers should consider the lagged effects of interest rate changes when formulating monetary policy to ensure smoother market transitions.