The Study of the Relationship between Comprehensive Earnings Volatility and Market Risk in Companies Listed on Tehran Stock Exchange

The main aim of the present study is to examine the relationship between comprehensive earnings volatility and market risk in companies listed on Tehran Stock Exchange. Statistical population of the present study consisted of companies listed on Tehran Stock Exchange during the time frame of 2006 to 2013 and sample volume is calculated to be equal to 122 companies by using screening method and after the elimination of outlaying observations. In this study, net earnings volatility, comprehensive earnings volatility and increasing comprehensive earnings volatility were considered as independent variables in order to study their effect on market risk in companies. In this study, in which panel data with fixed and random effects were used, results obtained from firm data analysis by using multiple-variable regression at 95% confidence indicated that there is a direct relationship between net earnings volatility, comprehensive earnings volatility and increasing comprehensive earnings volatility with market risk of companies

Oil Price Volatility, an Economic Determinant of Earnings Volatility - Empirical Analysis on Earnings Volatility of U.S. Oil and Gas Companies Between 1986-2016

This study examines whether oil price volatility, an economic determinant, has significant correla-tion with earnings volatility in the U.S. oil and gas companies. The study also explores whether earnings volatility has increased in the very industry for the last thirty years. Differences among sub groups within the industry are studied to add precision to the analysis. The study applies pooled data OLS regression to explore the relation between oil price volatility and earnings volatility. The observation sample is collected from Compustat database in WRDS from 1986 to 2016. Findings suggest that oil price volatility has positive relation with earnings volatility and cash flow of operations. Earnings volatility for the time frame from 2002 to 2016 is greater than before 2002 for the whole industry. The level of earnings volatility is larger for oil and gas producers(SIC1311) than for refineries(SIC2911) for both time periods. However, increasing degree of association be-tween the two variables is observed only for oil and gas producers(SIC1311). The study concludes that oil price volatility provides incremental information connected to earn-ings volatility associated risk in the U.S. oil and gas industry. Especially oil and gas producers were found significantly affected by oil price volatility in terms of earnings volatility

The Relation Between Cash Holdings and Earnings Persistence

Our research question is whether corporate cash holdings can benefit firms through improving earnings persistence which is one of the measures of earnings quality. In order to answer this question, we test whether and how cash holdings are related to earnings persistence. Our results show a strong positive relation between cash holdings and earnings persistence. Next, we examine whether this relation holds after controlling for earnings volatility, since Dichev and Tang (2009) find a strong negative relation between earnings volatility and earnings persistence. We find that the positive relationbetween cash holdings and earnings persistence can be seen if earnings volatility is higher, but it cannot be seen if earnings volatility is lower. These results suggest that cash holdings can benefit firms with volatile earnings

PENGARUH KEBIJAKAN DIVIDEN, EARNING VOLATILITY, DAN LEVERAGE TERHADAP VOLATILITAS HARGA SAHAM PADA PERUSAHAAN NON-FINANCING YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010-2014

ABSTRACTThe research examines the effect of dividend policy, earnings volatility, and leverage on share price volatility of non financing companies listed in Indonesia Stock Exchange in 2010-2014. Dividend policy variabel using dividend payout ratio and leverage variabel using debt to equity ratio.Secondary data were sourced from the financial statements, published by the capital market reference center at the Indonesia Stock Exchange. The research type used in this research is hypothesis testing, by using simple random sampling method. There are 195 samples of the data that become the object to be researched. This research uses multiple linear regression analysis to test the hypothesis. The results of this research show that simultaneous of dividend payout ratio, earnings volatility, and leverage have effect on share price volatility. Partially the research shows that (1) dividend payout ratio have negative effect on share price volatilty, (2) earnings volatility have positive effect on share price volatility, and (3) leverage have positive effect on share price volatility.Keywords: Dividend Policy, Earnings Volatility, Leverage, and Share Price VolatilityABSTRAKPenelitian ini bertujuan untuk menguji pengaruh kebijakan dividen, earnings volatility, leverage terhadap volatilitas harga saham pada perusahaan non financing yang terdaftar di Bursa Efek Indonesia tahun 2010-2014. Variabel kebijakan dividen yang digunakan adalah dividend payout ratio, dan variabel leverage yang digunakan adalah debt to equity ratio.Data sekunder yang digunakan diperoleh dari laporan keuangan yang dipublikasikan oleh pusat referensi pasar modal yang terdapat di Bursa Efek Indonesia. Jenis penelitian yang digunakan dalam studi ini adalah pengujian hipotesis, dengan menggunakan metode simple random sampling. Terdapat 195 sampel data yang menjadi objek penelitian. Hipotesis diuji dengan menggunakan analisis regresi linear berganda.Hasil penelitian menunjukkan bahwa secara simultan variabel dividend payout ratio, earnings volatility, leverage berpengaruh terhadap volatilitas harga saham. Secara parsial hasil penelitian menunjukkan bahwa (1) dividend payout ratio berpengaruh negatif terhadap volatilitas harga saham, (2) earnings volatility berpengaruh positif terhadap terhadap volatilitas harga saham, dan (3) leverage berpengaruh positif terhadap volatilitas harga saham. Kata kunci: Kebijakan Dividen, Earnings Volatility, Leverage, dan Volatilitas Harga Saham

Are the Recent Restatements of Financial Institutions 10K’s due to the Perceived Earning Volatility Caused by SFAS 161?

The goal of this research was to investigate the controversy surrounding the inability of SFAS 133 an amendment of SFAS 161 to portray the economics of hedging. This research examined whether or not BHCs’ design of hedge effectiveness tests was determined by the concern of the additional earnings volatility possibly evolved from economic hedges that do not qualify for hedge accounting. The results implicate that most BHCs after the amendment of SFAS 161 reassessed their risk management approach to one that is more accounting responsive to ensure that most hedges are highly effective to qualify for hedge accounting. The findings suggest that BHCs reciprocate between risk management and earnings volatility when face a trade-off between employ economic hedges which increase earnings volatility and discontinue economic hedges to avoid increases in earnings volatility. The results accede with the results of Park (2004), Singh (2008), Zhang (2008), Hariom (2014), Bratten (2016), Spencer (2018), and Thomas (2018) who found that derivative users had lower levels of earnings volatility after the introduction of SFAS 161

The Effect of Earnings Volatility on Borrowers' Cost of Debt: Evidence from Indonesia

This study aimed to examine the effect of earnings volatility on borrowers cost of debt. In addition, this study also analyzes the difference effect of earnings volatility on borrowers cost of debt for different industries. Samples were selected by using the purposive sampling method and obtained 1,100 observations from eight industries sector in Indonesia listed in Indonesian Stock Exchange based on the Jakarta Stock Industrial Classification from 2012-2016. Three control variables used in this study were profitability, liquidity and solvency. The result shows that earnings volatility has positive effect on the borrowers cost of debt. The profitability has a negative effect on borrowers cost of debt, nevertheless liquidity and solvency have no effect on borrowers cost of debt. Therefore, every company expected to maintain and stabilize their earnings with generates a good performance of profitability. Furthermore, the result also shows that there is a difference effect of earnings volatility on borrowers cost of debt in each industrial sector in Indonesia listed in Indonesia Stock Exchange. The industrial sector which have significant effects between earnings volatility and borrowers cost of debt were agriculture sector and miscellaneous sector

Earnings Volatility, Kebijakan Dividen, dan Pertumbuhan Asset Berpengaruh terhadap Volatilitas Harga Saham pada Perusahaan Manufaktur di BEI Periode 2013 - 2015

  This research was conducted to examine the influence of earnings volatility, dividend policy, and assets growth to stock price volatility in manufactured company in Indonesia Stock Exchange for period 2013 - 2015. There are four variables: stock price volatility as the dependent variable, while the EV, DPR, and Growth as the independent variables. The analysis technique used in this research is multiple linier regressions. Based on statistical t test, earnings volatility have significant influenced on Stock price volatility because the significant value is less than 0,05. Meanwhile, DPR and assets growth doesn\u27t have a significant influence because the significant value is more than 0,05. Based on statistical F test indicates that variables EV, DPR, and growth simultantly affect to stock price volatility. Result of coefficient determination test showed that earnings volatility, DPR, and growth explained the firm value 7,29%, and the rest is influenced by other variables outside the model.   Keywords: stock price volatility, earnings volatility, dividend policy, and assets growt

Analysis of Earnings Volatility Between Groups

With this project, the intent is to take a detailed look at how the level of earnings volatility varies between groups. In order to do this, statistical comparison tests will be performed on earnings data. The initial hypothesis is that earnings volatility will be positively correlated to earnings level due to higher earners having more to gain or lose at a given time. The results from the analysis, however, will indicate otherwise. The overall findings of this paper will show varying levels of earnings volatility for different groups, findings I hope will be expanded on in the future

Trends in Men's Earnings Volatility: What Does the Panel Study of Income Dynamics Show?

Using Panel Study of Income Dynamics data for 1969 through 2004, we examine movements in men's earnings volatility. Like many previous studies, we find that earnings volatility is substantially countercyclical. As for secular trends, we find that men's earnings volatility increased during the 1970s, but did not show a clear trend afterwards until a new upward trend appeared in the last few years. These patterns are broadly consistent with the findings of recent studies based on other data sets.