Profitability and firm value: the impact of noncash value flow recorded in the financial statements

Autor:	Santoso Tri Hananto, Bambang Sutopo
Rok vydání:	2019
Předmět:	Finance Economics and Econometrics Return on assets Earnings business.industry media_common.quotation_subject Enterprise value Tobin's q Stock exchange Cash Value (economics) Economics Profitability index business media_common
Zdroj:	International Journal of Economic Policy in Emerging Economies. 12:1
ISSN:	1752-0460 1752-0452
DOI:	10.1504/ijepee.2019.10026306
Popis:	This study examines whether non-cash value flow (NCVF) recorded in financial statements has an impact on the relationship between the profitability and the firm value. Using a sample covering 1,904 firm-year observations listed on the Indonesia Stock Exchange (IDX) for the 2013–2016 periods, the results of this study indicate that the impact of NCVF on the association between profitability and firm value for the high positive NCVF sub-sample is not significantly different from that for the low NCVF sub-sample. In addition, the impact of NCVF on the relationship between profitability and firm value for the high absolute negative NCVF sub-sample was significantly lower compared to that for low NCVF sub-sample. These results are not fully following the nature of NCVF which affects earnings and assets that can be normal (reflecting relatively higher quality) or either above normal or below normal (reflecting relatively lower quality) and which subsequently affect profitability (ROA) and firm value (Tobin's Q).
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::31f45093326a4d512493f5f3948982d1 https://doi.org/10.1504/ijepee.2019.10026306 Zobrazit plný text záznamu