Empirical Evidence On The Valuation Of Financial Information In France

We propose and examine empirically the role of financial information; namely, earnings and cash flows in France.  The dataset consists of more than 1,000 French firm-year observations over a ten-year period. Regression analysis is undertaken to test the major research hypotheses.  The major conclusions drawn from the empirical results are summarized as follows.  First, results indicate that both earnings and cash flows are taken into consideration by French investors in their investment decisions.  Second, given cash flows, results show that earnings are always very important to investors and financial analysts for investment purposes.  However, results reveal that investors in France place much more attention to earnings and less attention to cash flows. In summary, the evidence provided in this study supports that indeed there are substantial differences in the way investors and financial analysts perceive financial information, such as earnings and cash flows in France.  The results of this study should be of great importance to the major stakeholders, such as investors, creditors and financial analysts, especially after the latest financial scandals and collapses of giant organizations worldwide.  Furthermore, these results support that fundamental analysis plays a very important role in the capital markets and it should be taken more seriously into consideration by the stakeholders for investing, credit, financing and valuation analysis purposes

The Effect Of Working Capital Management On Firms Profitability: Empirical Evidence From An Emerging Market

In this study, we empirically investigate the effect of working capital management on firm’s financial performance in an emerging market. We hypothesize that working capital management leads to improved profitability. Our data set consists of firms listed in the Cyprus Stock Exchange for the period 1998-2007. Using multivariate regression analysis, our results support our hypothesis. Specifically, results indicate that the cash conversion cycle and all its major components; namely, days in inventory, days sales outstanding and creditors payment period - are associated with the firm’s profitability. The results of this study should be of great importance to managers and major stakeholders, such as investors, creditors, and financial analysts, especially after the recent global financial crisis and the latest collapses of giant organizations worldwide

The Effect Of Conference Call Initiations On Analyst Coverage And Institutional Ownership

The study empirically examines changes in institutional ownership and analyst coverage in the years following conference call initiations. We find significant increases in both variables in the years following initiations of conference calls after controlling for confounding factors. These results complement prior research on the benefits of disclosures and suggest that expanded disclosures create additional institutional and analyst interest in stocks.&nbsp

The Effect Of Working Capital Management On Firm’s Profitability: Empirical Evidence From An Emerging Market

In this study, we empirically investigate the effect of working capital management on firm’s financial performance in an emerging market. We hypothesize that working capital management leads to improved profitability. Our data set consists of firms listed in the Cyprus Stock Exchange for the period 1998-2007. Using multivariate regression analysis, our results support our hypothesis. Specifically, results indicate that the cash conversion cycle and all its major components; namely, days in inventory, days sales outstanding and creditors payment period - are associated with the firm’s profitability. The results of this study should be of great importance to managers and major stakeholders, such as investors, creditors, and financial analysts, especially after the recent global financial crisis and the latest collapses of giant organizations worldwide.

The Relationship Between Working Capital Management And Firms Profitability: An Empirical Investigation For An Emerging Asian Country

The major objective of this study is to examine the relationship between working capital management and firms profitability. Using a dataset of all Indonesian firms over the period 1998-2010, results show that the Cash Conversion Cycle and Net Trade Cycle are positively associated with the firms profitability. Results also show that firms riskiness, as measured by the debt ratio, is negatively related to the firms Return on Assets. The results of this study should be of interest to executives and major stakeholders, such as investors, creditors, and financial analysts, especially after the recent global financial crisis and the latest collapses of giant organizations worldwide