Earnings Variability Research Articles

The Influence Of Earning Per Share (Eps), Dept To Equity Ratio (DER), And Company Age On Underpricing In Idx

This study analyzes whether the variables earnings per share (EPS), debt to equity ratio (DER), and Age Copies influence the underpricing of the Initial Public Offering (IPO). The theory related to underpricing is the signaling theory. The method used in this study is regression analysis. The results from this study show that only three variables, EPS, DER, and Age Companies, have a significant effect on underpricing. Because of the higher profitability, investors will be interested in buying or getting a substantial return on their participation. Simultaneously, no variables affected underpricing.

The Returns to College Major Choice: Average and Distributional Effects, Career Trajectories, and Earnings Variability

Abstract A growing literature examining labor market returns to college major is motivated by large returns to skill. Prior research focuses on mean effects rather than earnings growth and variability. Using administrative data from Texas, we find that mean differences mask important features of the returns to college majors. First, earnings growth varies across fields. Second, there is considerable effect heterogeneity across workers. Third, major choice affects earnings variability within workers over time. We use our results to simulate a lifecyle utility model and compare mid-career utility and mean earnings returns across fields while highlighting the important role of risk preferences.

Immigration, domestic labor, and earnings inequality among native-born women in the US

ABSTRACT The wage effects of immigration have been widely studied, yet much of the research has focused on competitive threats to low-skilled native-born men. In contrast, this paper applies a gender lens to explore possible complementary relationships between immigration-induced outsourcing of domestic work and the earnings of native-born women, while recognizing the classed and racialized nature of domestic labor. Empirically, this article examines subgroup variations in earnings among full-time employed native-born women by education and race/ethnicity in relation to the state share of immigrants in the domestic service sector. The analysis combines data from the 2012 American Community Survey with state-level work-family policy data collected for 2010, accounting for compositional differences and selection into the labor force. Likely due to increased availability of affordable domestic services, the results show a higher immigrant share is associated with greater earnings for native-born women overall. However, education and race/ethnicity moderate this association, indicating that highly educated non-Hispanic white women benefit more than other women because the labor process and outsourcing of household production are classed and racialized. Hence, states with a higher share of immigrants filling domestic services exhibit wage dispersion patterns that reinforce intersectional inequality among native-born women.

Effect of Audit Fees and Audit Tenure on Earnings Management of Listed Deposit Money Banks in Nigeria

This paper assesses the effect of audit fees and audit tenure on earnings management of listed deposit money banks in Nigeria. The population consists of the 14 DMBs in Nigeria spanning from 2011 to 2021, out of which twelve banks were selected as the sample size using a criterion on the availability of data. The paper uses a longitudinal research design to investigate the effect of audit fees and audit tenure on the earnings management of listed DMBs in Nigeria. The audited financial annual reports of the banks chosen were used to collect data for the independent variables such as audit fees and audit tenure, as well as the dependent variable earnings management. The Generalized Method of Moment (GMM) was then employed for analyzing the data. The result shows that audit fee had a coefficient of -0.1461at a significant level of 0.0000. Audit tenure has positive coefficient of 0.1405at a significant level of 0.0001 influences on listed DMBs' management of earnings in Nigeria. The study therefore concludes that, audit fee curtail EM of listed DMBs in Nigeria while audit tenure do not ameliorate EM of listed DMBs in Nigeria. In order to prevent the threat of familiarity, the paper recommends that DMBs in Nigeria should stick to the statutory and professional standard audit fees and discourage long-term audit firm retention.

Elevating Sugarcane Farming: Effects of Certified Seed Adoption on Production and Income in East Java, Indonesia

The use of certified seed is essential for sugarcane agricultural intensification method, emphasizing input quality improvements. In this context, varietal validity has the potential to increase sugarcane output volumes and ensure quality variations. Therefore, this research aimed to analyze the variables affecting farmers' decisions on seed varieties, output, and revenue. The type of data used was cross-sectional with a sample of 1,763 respondents, consisting of 303 and 1,460 adopter and non-adopter farmers, respectively. Propensity score matching and logistic regression were the analysis methods used. The results showed that farmers' age, number of workers, land ownership status, extension participation, and partnerships significantly influenced the decisions in selecting seed types. Significant variations in output, gross income, total expenses, net income, and net earnings were also reported using statistical test analysis, with certified seed adopters having higher profits. In this context, young farmers should be targeted to promote the use of certified seed, provide sufficient labor support for intensive farming, ease access to land, and enhance persuasive messages about partnership benefits. Moreover, ensuring the continuity of production and distribution was important to maintain reasonable seed prices and facilitate farmers' access.

The Impact of Climate Change on Work: Lessons for Developing Countries

Abstract We identify five areas where climate change may impact work and draw lessons for developing countries by reviewing the evidence. Firstly, demand for labor is unevenly affected, with agriculture, heat-exposed manufacturing, and the brown energy sector experiencing downturns, while other sectors may see a rise, resulting in an uncertain overall impact. Secondly, climate change impacts labor supply through absenteeism, shirking, and altering work-time patterns, depending on the activity and sector. Thirdly, productivity may decline, especially in heat-exposed industries, primarily due to health reasons. Fourthly, heightened earnings variability likely increases vulnerability among the self-employed. Fifthly, climate change can influence labor allocation and catalyze sectoral reallocation. Higher temperatures are also linked to increased migration. But caution is needed in interpreting these findings, as studies across these topics predominantly use fixed effect estimation and concentrate on short-term impacts, neglecting adaptation. Emerging research on adaptation indicates that workplace cooling is unappealing for firms with narrow profit margins, while coping strategies of farms and households have unclear optimality due to adoption barriers. Government responses remain understudied, with six potential areas identified: green jobs, green skills, labor-oriented adaptation, flexible work regulation, labor market integration, and social protection. We conclude by outlining future research directions.

Pengaruh Profitabilitas, Leverage, Earnings Per Share, dan Tax Planning Terhadap Return Saham

The goal of this study was to examine how factors like as profitability, leverage, earnings per share, and tax strategy affect the return on investment for shareholders. Variable earnings per share proxied by eps. The ratio of debt to equity serves as a proxy for the leverage variable. Profitability variable is proxied by return on asset. And tax planning variable is proxied by effective tax rate. Share return was considered as important by investor and company because it describes the financial performances of company. This study looked at many industries during the course of the years 2016-2022. Purposive sampling was used to pick the sample, and a total of 10 businesses were included. The multiple regression approach was used to examine the secondary data used in this study. This study found that profits per share did not influence share return, and leverage had a negative impact on stock returns. A negative and negligible impact on stock returns, profitability didn’t effect share return, and tax planning didn’t effect share return. Earnings per share, leverage, profitability, and tax planning simultaneously influence stock returns.

Suppliers Sourcing Strategy and Sustainable Procurement Performance Among Kenya Tea Development Agency Factories in Region 5, Kenya

Companies involved in a supply chain must coordinate their operations through adoption of inbound logistics strategies so as to enhance business performance. KTDA factories have adopted inbound logistics strategies with the aim of turning around their performance as well as reduce operational costs leading to sustainable procurement performance. However, despite this KTDA tea factories still experience wide variations in earnings. The drop in earnings and high variation in tea bonuses among factories has been blamed on operational cost at the factory. This points out that although inbound logistics have been adopted, they have not resulted in sustainable procurement performance. The purpose of this study was to determine the relationship between suppliers sourcing strategy and sustainable procurement performance. The study adopted correlation research design. The target population of the study was 188 staff drawn from the 16 KTDA managed Region 5 factories. A census method was used to collect data from the production managers, ICT managers, procurement Managers, leaf base managers, factory unit managers and directors using a structured questionnaire. The findings revealed that suppliers sourcing strategies had a positive significant correlation with sustainable procurement performance (r = 0.545, p < 0.05). The study recommends that KTDA sourcing strategies need to aligned to organizational sustainability goal, develop procedures and policies on material handling with sustainability goal. The results of this study may advice on policy formulation in relation to sourcing strategies and sustainable procurement performance. Other researchers may benefit from the literature on inbound logistics and sustainable procurement performance since the current study provided a basis for further studies

Pengaruh Pertumbuhan Laba, Leverage, Profitabiilitas, Likuiditas Terhadap Kebijakan Dividen

Dividend policy is a measure of the stability of a company's stock management by determining the proportion of dividends that balances the growth of the company and the welfare of investors. The purpose of this study is to determine the impact of earnings growth, leverage,profitability,liquidity on dividend policy. This study uses data on the financial reports of manufacturing.companies in the food and beverage subsector from 2019-2022. In this study, the sample was selected using purposive sampling techniques and criteria to obtain 48 data from 14 companies. The.method used in this study consists of several linear regression techniques to analyze the relationship between independent and dependent variables. The results of this study show that the variable earnings growth has a significant negative impact on the dividend policy, the variable leverage (DER) has no effect on the dividend policy, and the variable profitability (NPM) has a significant negative impact on the dividend policy has been shown to have a significant positive impact on Impact on dividend policy and liquidity variable (CR) has no effect on dividend.policy The level of a company's ability to pay dividends is an investment signal for investors. Therefore, companies need to maintain their ability to generate profits and manage leverage. Failure to manage this will have a negative impact on the company itself, reducing its ability to pay dividends. Investors also need to be more careful, such as observing company signals, before investing in a company.

FAKTOR-FAKTOR YANG MEMPENGARUHI NILAI PERUSAHAAN PADA PERUSAHAAN NON KEUANGAN DI BEI

This aims to obtain empirical evidence regarding the effect of earnings per share, managerial ownership, firm age and debt to equity ratio on firm value in non-financial companies listed in the Indonesia Stock Exchange for the 2017-2019 period. The sample was obtained based on the purposive sampling method and the final data used in this study found 135 non-financial companies. The data processing technique used multiple regression analysis assisted by Econometric Views 9. The results showed that the variables of earnings per share, managerial ownership and debt to equity ratio had no significant effect on firm value. Meanwhile, the firm age variable has a significant negative effect on firm value. The implication of this research is the need for the role of company management in paying attention to the age of a company as a strategy to be able to maintain and even increase the value of the company in the future.

Monte Carlo simulation-based financial risk identification for industrial estate as post-mining land usage in Indonesia

The issue of post-mining land usage is emerging in Indonesia due to the significant contribution of the mining industry to the country's economic development. Among the popular options for utilizing these lands is the establishment of industrial estates. The objective of this study is to investigate the complexities associated with identifying financial risks using an integrated framework to be implemented in industrial estates located on post-mining lands in Indonesia. The framework was constructed by combining traditional feasibility study methods with Monte Carlo simulation. The financial model was built using 31 input variables (assumptions) and 3 output variables (forecasts). The Monte Carlo simulation results revealed that there is an approximately 82.32% probability of the project's payback period being within 25 years, and a 94.23% probability of a positive net present value. Three input variables were found to contribute to 80% of the variation in average earnings. Additionally, five variables were identified as financial risk factors impacting net present value and discounted payback period. Out of the thirteen financial risk factors, ten were internal factors that require a management plan to mitigate them effectively. The framework contributed an emphasize on the importance of risk analysis as complementary analysis in a feasibility study.

BLACK MALES IN NON-STEM AND STEM OCCUPATIONS

While many labor market studies have examined wage inequality by race, gender, and class, the research has seldom directly considered labor market outcomes of STEM college graduates within the context of non-STEM and STEM occupations. The current study investigates the determinants of wages among Black males in STEM and non-STEM occupations compared to their White male peers. Through this investigation, it explores the feasibility of broadening Black males' participation in STEM occupations but also how they might earn higher wages and thereby close the wage gap with White male peers. The Public Use Microdata Sample (PUMS) files for the 2018 American Community Survey (ACS) were the primary data source for the current study. Following the convention in labor economics, the author used Mincer's single-equation model to explain variations in earnings as a function of select wage determinants derived from the data. Three main insights emerged from the current study. The findings suggested that opportunities do exist for employers to hire qualified Black males seeking gainful employment in STEM occupations. The findings also indicated that within the Black male group, working in a STEM occupation with a college degree in a STEM field was the best route to attain maximum wages. The third insight from the current study cannot be avoided: the noticeable gaps in wages between White and Black males. Implications of the findings for employers seeking to diversify their STEM workforce and for Black males considering employment or employed in a STEM occupation are discussed.

Peran Mediasi Intellectual Capital Dalam Hubungan Firm Size Dengan Earning Quality

This study aims to examine the mediating role of Intellectual Capital in the relationship between Firm Size and Earnings Quality. This study uses the theory of Signal Theory RBV. The population and research sample are manufacturing companies listed on the Indonesia Stock Exchange in 2019 – 2021. This research is an explanatory research that aims to examine the causal relationship between variables. The independent variables in this study are Firm Size and the dependent variable Earnings Quality and Intellectual Capital as mediating variables. The results of this study indicate that firm size has a positive but not significant effect on earnings quality. Firm size has a positive and significant effect on intellectual capital, so does intellectual capital has a positive and significant effect on earnings quality. Intellectual capital can mediate the relationship between firm size and earnings quality

The Role of Human Capital and Regional Effects on Earnings: Multilevel Mixed Effect Regression Approach

Indonesia has an abundant labor supply, so examining the determinants of earnings that reflect labor productivity is essential. This study is keen to estimate the effect of human capital, demographic factors, and regional (Regency/City) effects on workers' earnings in the Province of Central Java in 2022. The data is collected from the National Labor Force Survey (Sakernas). The multilevel mixed-effect regression is employed to assess the effect of individual characteristics and district-level variation on earnings. The study found that human capital, demographic factors, and regional (Regency/City) effects significantly affect earnings. Education and training are essential to improve workers’ skills, leading to higher performance. Further, regional characteristics have contributed to explaining earnings variation across workers in Central Java.

Value Uncertainty

We examine how time-series volatility of book-to-market (UNC) is priced in equity returns and the relative contributions of its book volatility (variations in earnings and book value) and market volatility components (shocks in required return). UNC captures valuation risk, so stocks with high valuation risk earn higher return. An investment strategy long in high-UNC firms and short in low-UNC firms generates 8.5% annual risk-adjusted return. UNC valuation risk premium is driven by outperformance of high-UNC firms facing higher information risk and is not explained by established risk factors and firm characteristics. This paper was accepted by Agostino Capponi, finance. Funding: The authors acknowledge financial support from Spain’s Ministry of Education [Grant EC02011-24928], Generalitat de Catalonia [Grant 2014-SGR-1079], Banc Sabadell, the Bank of Cyprus, and the European Social Fund. M. El Hefnawy acknowledges financial support from the Spanish Ministry of Science and Innovation [Grant PID2021-128994NA-I00]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4888 .

Permanent and transitory earnings dynamics and lifetime income inequality in Sweden

This paper studies the role of permanent- and transitory earnings variability for lifetime income inequality in Sweden. We fit a permanent–transitory error component model to the autocovariance structure of earnings using administrative data for 2002–2015 and minimum distance estimation. We find that permanent earnings inequality increased during the first decade and that the financial crisis of 2008 temporarily heightened earnings volatility. Using this model, we simulate pension entitlements and study lifetime income inequality conditional on the pre- and post-1990s pension system. We find that permanent earnings differences generally contribute the most to lifetime income inequality. We conclude that the Swedish pension system provides some insurance against earnings risk, but accentuates the role of permanent earnings differences in explaining lifetime inequality.

Pengaruh Aspek Fundamental Dan Teknikal Terhadap Harga Saham Perusahaan Perbankan 2019-2021

In investing in shares is not just about including capital into a company, but it is necessary to conduct an analysis to find out the performance of the company, especially in fundamental and technical analysis. The fundamental factors used are variables Earnings Per Share while the technical factors used vary Trading volume, market capitalization, and book value to the market.This study was conducted with the aim of determining the influence of variables Earning Per Share, Trading Volume, Market Capitalization and Book to Market Value on the Stock Price of the Banking Sector listed on the Indonesia Stock Exchange in 2019-2021. This study used a quantitative approach with purposive sampling method. The data used are secondary data and the analysis methods used are panel data regression and multiple linear regression. The results of this study show that partially the variables Earning Per Share, and Market Capitalization have a significant positive effect on stock prices while the variables Trading Volume and Book to Market Value do not have a significant effect on stock prices. And simultaneously the variables Earnings Per Share, Trading Volume, Market Capitalization and Book to Market Value have a significant effect on stock prices.

The Influence of Earning Per Share, Turnover of Total Asset, Return on Equity and Debt Asset Ratio on LQ45 Index Share Price Period 2017 – 2021 listed on the Indonesia Stock Exchange

Due to the inflation factor, for that we need to invest in an investment asset, the current value of money will decrease. The investment instrument studied in this study were shares, using financial ratios to establish whether financial ratios are correlated with stock prices so that we can search for companies that can provide benefits in the form of capital gains, the object of this research uses ratios, among others: earnings per share, total asset turnover, return on equity, and debt/asset ratio. This research, using the help of the Eviews version 10 program as an application to process the data used, was carried out on companies listed on the lq45 index. In this study, the purposive sampling method was used as the sampling method. The number of samples used were 23 companies with research data carried out from 2017 to 2021, so 115 observation data were obtained. From the results of this study it is known that: (1) Earnings per share has a significant positive effect on share prices, this is evidenced with a significance of 0.0000 and a t value of 11.35574, so H1 is accepted; (2) The Turnover of Total Assets has a significant positive effect on stock prices, this is evidenced by the significance of 0.0156 and the value of the arithmetic t (2.456378) for which H2 is accepted; (3) Return on Equity has a significant positive effect on share prices, this is evidenced by a significance of 0.0010 and a t-count value of 3.368250, so H3 is accepted; (4) The debt to asset ratio has a significant negative effect on share prices, this is evidenced by a significant value of 0.1872 and a t-count value of (1.327267) so H4 is rejected; (5) Obtained Simultaneous Test Results Arithmetic results F of 33.50263 with probability 0.000000 can be concluded if simultaneously all variables have a significant influence on stock prices. The results of the regression analysis show the adjusted value (r^2) of 0.532807, which means that variations in Earnings per Share, Total Asset Turnover, Return on Equity, and Debt to Assets Ratio can explain the 53.28 % of changes in stock price. While the remaining 46.72% is explained by other variables not examined in this study.

KEPEMILIKAN INSTITUSIONAL, LEVERAGE DAN FAKTOR LAINNYA TERHADAP MANAJEMEN LABA

The aim of this study is to obtain empirical evidence about the effect of institutional ownership, composition of independent commissioners, composition of board of directors, audit committee, audit quality, size of the company, leverage, and profitability toward earnings management. This study used a sample of manufacturing companies that listed in Indonesia Stock Exchange (IDX) for three years, 2019 to 2021. The number of sample which collected with purposive sampling method is 74 companies with 218 data as a total. The study uses multiple regression method to examine the effect of independent variables on the dependent variable earnings management. The result of this study indicates that composition of independent commissioners and composition of board of directors have negative effect on earnings management, meanwhile leverage and profitability have positive effect on earnings management. On the other hand, other independent variables such as institutional ownership, audit committee, audit quality, and size of the company have no effect on earnings management.

PENGARUH KINERJA KEUANGAN DAN FAKTOR LAINNYA TERHADAP MANAJEMEN LABA PADA PERUSAHAAN

This research is a development of previous research, namely Asim and Ismail (2019) with the dependent variable earnings management and the independent variable leverage. This study aims to examine actual data on how financial performance and other variables affect earnings management in manufacturing organizations. Leverage, profitability, firm size, company growth, audit committee, fixed asset turnover, and audit quality are the factors used in this study. The population of this study is manufacturing companies listed on the Indonesia Stock Exchange during the period 2019 to 2021. Purposive sampling is used to choose the samples for this study, and 216 data are collected. Data were examined using several regression techniques. Proxy that used in this research was Modified Jones Model as proxy of dependent variable earnings management to calculate data. The findings of this study demonstrated that the company growth have an impact on earnings management. This showed that changes of total asset of in a company from year to year can affected the manager to do earnings management. While others, such as leverage, profitability, firm size, audit committee, fixed asset turnover, and audit quality, do not influence on earnings management.