The influence of fundamental factors and systematic risk to stock prices on companies listed in the Indonesian stock exchange

The stock price is one indicator of the successful management of the company, if the stock price of a company always increases, the investor or prospective investor considers that the company succeeded in managing their business. The investor or prospective investor confidence is very beneficial for emitter, as more and more people who believe in the issuer's willingness to invest in listed companies stronger Recently, we revealed the influence of fundamental factors and systematic risk simultaneously and partially on stock price at Company Registered in LQ45 Index Period 2011-2015 In this study, the data analysis model used is the test panel data regression (pool) which is a combination of cross section with the timeseries data. The results of this study indicated that simultaneously there were significant influence between the Price Earnings Ratio (PER), Earning per Share (EPS), Net Profit Margin (NPM), Price to Book Value (PBV), and Risk Systematic on stock prices on companies listed in LQ45 Index 2011-2015. Partially, Price Earnings Ratio (PER), Earning per Share (EPS), Net Profit Margin (NPM), Price to Book Value (PBV), and Systematic Risks have significant effect on stock prices.peer-reviewe

Determinants of Stock Return and Firm Value of Manufactures Listed at the Indonesian Stock Exchanges

Objectives: This study aimed to examine the impact of ownership structure, fundamental factors, and technical analysis on stock returns, as well as the impact of these factors on firm value.Methodology: This research is an explanatory descriptive research with a quantitative approach where the study encompasses a population of 148 manufacturing companies listed on the Indonesia Stock Exchange. From this population, a purposive sample of 50 companies is selected for in-depth analysis.Finding: The findings indicated that the ownership structure did not have a substantial impact on stock returns, despite showing a positive trend. Similarly, fundamental factors were found to have a positive influence on stock returns but the effect was not statistically significant. In contrast, the utilization of analytical techniques was associated with a significant and positive impact on stock returns. Additionally, the study revealed that ownership structure, fundamental factors, analytical techniques, and stock returns collectively had a noteworthy and positive effect on firm value. Finally, the investigation demonstrated that ownership structure, fundamental factors, and technical analysis played a significant role in determining firm value through their impact on stock returns.Conclusion: Overall, the company's value can be significantly enhanced through stock returns by considering ownership structure, fundamental factors, and technical analysis in a positive manner

THE DETERMINANT OF MCMORAN STOCK PRICE

The Purpose of this paper is to research the determinant of fundamental factors consisting of Net Profit Margin (NPM), Return on Equity (ROE), Return on Asset (ROE), Earning per Share (EPS), Working Capital Turn Over (WCTO) and external factors namely: oil prices, gold prices, the Fed’s interest rate and systematic risk, and also Indonesia government regulation towards FCX stock prices. This paper utilizes the ECM analysis methodology, the data during the period of 2000-2019, are obtained from quarterly financial statements issued to the Security Exchange Commission (SEC), the internet for share and commodity prices and also created dummy variable to accommodate the impact of Indonesia government regulation (MINERBA LAW). The results indicate that fundamental and external factors simultaneous have a significant influence on FCX stock prices. Partially in the long-term ROA, gold prices and world oil prices have a significant positive effect, while the Fed Rate and government policies have a significant negative effect. In the short term, the price of oil, gold and WCTO has a significant positive effect, while ROE has a significant negative effect. Keywords: external factors, fundamental factors, minerba law, mining company, stock pric

Capital structure and firm growth: The case of Vietnamese listed firms

This thesis provides a wide range of research on capital structure within the context of Vietnamese listed firms through three specific empirical studies. The first study focuses on analysing the adjustment process of capital structure towards the target level. This study strongly confirms that the average adjustment speed towards the target capital structure of Vietnamese listed firms is approximately 30% per year. This result is considered slower than the expected rate of 60% based on the related literature for other emerging economies. Due to this empirical result, further examination of the factors affecting the adjustment speed sheds light on the most significant determinants that contribute to the higher speed of adjustment. Three factors are considered in this study (distance to target, firm size, and growth opportunities), and the results reveal that all of them positively correlate with the adjustment speed with different impact levels. The second study concerns the determinants of capital structure. Specifically, six factors are specified to evaluate their impact on financial leverage. The results show that there is evidence to conclude certain effects of independent factors (firm size, liquidity, profitability, tangibility, growth opportunities, and non-debt tax shield) on financial leverage. Of these, positive correlations are reported for firm size, liquidity, and tangibility; meanwhile profitability, growth opportunities, and non-debt tax shield have negative impact on financial leverage.The third study focuses on the impact of capital structure on firm growth (measured by the growth rate of financial indicators: sales revenue, total assets, and operating profit). Short-term debt and long-term debt were employed as proxies for capital structure. The empirical findings reveal that long-term financial leverage strongly affects the growth of Vietnamese listed firms in all aspects of business. Meanwhile, the short-term debt model shows moderate support for the sales and operating profit model, and only weak support for the total assets growth model

Corporate governance mechanisms, corporate sustainability concerns and company financial performance : evidence from public listed Indonesian commercial banking companies

This thesis investigates the relationship between corporate governance mechanisms, corporate sustainability concerns and company financial performance for public listed of Indonesian commercial banking companies throughout the period 2007-2014. Corporate governance mechanisms are defined by the construct of the board of commissioners' (BoCs) role, executive compensation and ownership structure. Meanwhile, corporate sustainability concerns are defined by the corporate social responsibility activities, which are disclosed in the bank's published reports (i.e., annual report or sustainability report). This thesis also employs the combination of two different measures of company financial performance: company financial health and market value, measured by the Altman's Z-Score Revision Model and Tobin's Q, respectively.The thesis employs a decision-making model framework, the Throughput Model, which is developed by Rodgers (1997) to describe the relationship among those constructs by adopting the shareholder and stakeholders perspectives. Data is presented from 252 firm-year observations as an unbalanced data panel of 39 commercial banking companies publicly listed on the Indonesia Stock Exchange throughout 2007-2014. Then, Partial Least Square-Structural Equation Modelling (PLS-SEM) is used to analyse data and provide results about potential influences among those aforementioned constructs.The thesis contains seven chapters, including three chapters of empirical findings, which are presented in chapters four, five and six. For each chapter of empirical findings, the study built and tested the potential influences among the constructs in four different research models: a simultaneous and separate current period analysis, a year time-lagged analysis, a moderation effect analysis and a reverse (changing) direction of framework analysis.The first empirical finding is presented in chapter four. It addresses the issue of whether mandatory internal corporate governance mechanisms, particularly the role of board of commissioners as the board supervision function, could influence corporate sustainability concerns as the construct of corporate responsibility disclosure. Further, this study examines whether there is an extended impact of the relationship of corporate sustainability concern on financial performance, in terms of both financial health and market value performance. This study provides evidence that the board of commissioners could be an important control mechanism to encourage the company to be more concerned with corporate sustainability with respect to economic, environment, and social activities. Further, viewed from the shareholder perspective, the positive influence brought by the board of commissioners on corporate sustainability concerns may dampen the firm's market value. On the other hand, according to the stakeholder perspective, the positive influence of the board of commissioners on corporate sustainability concern will improve company market value performance through its financial health performance. Moreover, this study also reveals that the motive of Indonesian banking companies in engaging in corporate sustainability initiatives tends to be altruistic. Indonesian commercial banking companies conduct corporate social responsibility activities only for their own sake, which influences the reduction of the company’s financial performance, both financial health and market value performance.The second empirical finding is provided in chapter five. It explores the potential influence of executive compensation on corporate sustainability concerns and company financial performance. Interestingly, by investigating the pay-for-performance relationship, this study finds that executive compensation has a direct significant positive impact on corporate sustainability concerns and both company financial health and market value performance. Meanwhile, by adopting a shareholder perspective, this study reveals that higher executive compensation can encourage managers to adopt more corporate sustainability concerns for the shareholders' and/or managers' benefits; however, this will reduce the firm's value. However, a counter-balance mechanism occurs when employs the stakeholders' perspective is employed. High executive compensation motivates managers to implement more corporate sustainability concerns to serve all stakeholders’ interests, which may to increase the firm's market value through company financial health.The third empirical finding is described in chapter six. It investigates whether the BoCs' role simultaneously with executive compensation could shape the motivation of the top management or executives to achieve company goals of higher company financial performance in a concentrated ownership dominant context. This study discovers that both the BoCs' role and ownership structure have a direct significant positive influence on executive compensation. This study reveals that the BoCs' role and ownership structure in two-tiered corporate governance systems promote higher payment of executive compensation and better company financial performance. Thus, there is a substitution and complementarity effect among the constructs and indicators of corporate governance mechanisms in determining company financial performance. This study also finds that concentrated ownership strengthens the positive relationship between the role of board of commissioners and executive compensation in order to increase company financial health and market value performance

The Influence Of Corporate Social Responsibility (CSR), Profitability, And Firm Size On Firm Value (A Study On Jakarta Islamic Index In The Period Of 2014-2018)

Penelitian ini bertujuan untuk menguji hubungan antara Corporate Social Responsibility (CSR), profitabilitas (ROE), dan ukuran perusahaan terhadap nilai perusahaan (PBV). CSR diukur menggunakan indeks Global Reporting Initiative (GRI). Populasi penelitian ini adalah perusahaan di Jakarta Islamic Index (JII) yang terdaftar di BEI selama periode 2014-2018. 35 perusahaan dipilih sebagai sampel dengan teknik purposive sampling berdasarkan kriteria yang ditentukan. Penelitian ini menggunakan data sekunder dari laporan tahunan perusahaan dan laporan keberlanjutan. Data penelitian dan hipotesis dianalisis menggunakan metode analisis regresi berganda menggunakan aplikasi SPSS. Hasil analisis menunjukkan bahwa pengungkapan CSR, profitabilitas, dan ukuran perusahaan memiliki efek positif pada nilai perusahaan. Dengan demikian, dapat disimpulkan bahwa semakin tinggi pengungkapan CSR, profitabilitas, dan ukuran perusahaan, semakin tinggi pula pengaruhnya terhadap nilai perusahaan

The Impact of Financial Determinants On Bank Deposits Using ARDL Model

The purpose of this research is to quantify the impact of macroeconomic factors on Jordanian bank deposits in the context of the CoVD-19 epidemic. The annual data are collected between 1980 and 2020. The novel Autoregressive distributed lag (ARDL) model is suggested to evaluate the link between bank deposits and macroeconomic factors. The findings of Grangers causality test indicate that there is a one-way causal link between deposits and macroeconomic factors. Moreover, the study shows no causal link between financial shocks and bank deposits. In addition, the border test investigates the existence of a long-term equilibrium between variables. To attain long-term equilibrium, the imbalance in the short-term equilibrium is adjusted at a rate of 11.6%. Based on the Theil test, the new model is suitable for econometric difficulties and predictability

Implementation of Strategic Pricing Model in Fashion-Based Creative Industry

This study aims to obtain empirical evidence of cost structure and implementation of competitive strategy in order to determine the selling price using strategic pricing model for fashion-based creative industry. The research method used was a survey using questionnaires with respondents from practitioners of Small and Medium Enterprises (SME) in East Java. Questions in the questionnaire are: cost structures along the downstream, upstream, and production costs, as well as policies related to the implementation of competitive strategies; tend to low cost or differentiation. Data analysis is descriptive quantitative, and for the separation of SMEs which is implement Low Cost or Differentiation strategy using model developed by Jermias and Ghani (2005). A total of 78 questionnaires returned and were eligible for further process. The results of this study show that most of SMEs (60%) have been exporting their products, and they consider the products from China is the main competitors. SMEs that have used social media for promotion and sales are 57%. The downstream cost structure of most SMEs are design and model development cost. Production costs includes the cost of raw materials, labor costs and other costs. While, upstream costs includes: marketing costs, product returns, and compensation costs. A 40% of SMEs implement competitive strategy tend to differentiation, and the rest uses strategy tend to Low Cost. With this results, the using the traditional model to set the selling price that has been applied by SMEs based on fashion need to be improved. It is suggested to use strategic price model, especially for SMEs which are implementing differentiation strategy. This means, the selling price strategy implemented by SMEs have to consider the strategy and its position in the product life cycle (Blocher et al, 2010: 566). This because theoretically, strategic pricing model is considered more appropriate for companies which are implementing differentiation strategies. While, SMEs which are implementing Low Cost strategy, using traditional selling price model is still considered appropriate. The results of this study is useful for development of pricing theory, in particular for SMEs. This result is also useful for the development of SMEs in order to improve competitive advantage from the aspect of price, so, the SME’s product will be able to compete with imported products

Trends in Emerging Markets Finance, Institutions and Money

Since the waves of financial liberalization in the 1980s, emerging market economies have been accessible to foreign investors. Altogether, they contributed up to 43.8% of the global GDP in 2018, and many of them, such as China, India, Bangladesh, Philippines, Myanmar and Vietnam from 2010 to 2019, are among the fastest-growing economies in the world. Given the high economic growth, the assets issued by companies in emerging markets are viewed as a new set of investment opportunities for global investors and fund managers who seek to improve the risk-adjusted performance of their portfolios. In addition to their risky profile due to the lack of transparency as well as stable and matured institutions, their recent development path faces a number of challenges arising not only from the slow pace of economic reforms but also from their increased integration with the world. Geopolitical risks, the US–China trade wars, and rising policy uncertainty around the world are expected to reduce their growth potential and performance. This Special Issue dedicates special attention to the current dynamics of emerging financial markets, as well as their perspectives of development as a key driver for sustainable firms and economies. Accordingly, the focus is particularly placed on market integration and interdependence, valuations and risk management practices, and the financing means for inclusive growth

Pushing for Joint Audit in Nigeria

This study examines whether the decision to engage two audit firms to conduct a joint audit would be associated with audit quality and earnings quality. The data on the perception of accounting academics and professionals was gathered through the use of a structured questionnaire. Analyses were carried out using Mean and ANOVA methods tested at 5% significance level. The Findings revealed that the engagement of joint auditors would not contribute positively to audit quality, higher earnings quality and would increase the cost of audit. It was therefore recommended that a voluntary joint audit would be a strategy to promote compliance with the regulations, build capacity of small and medium-sized practitioners, raise the quality of financial reporting and increase the confidence of investors and the general public