The Effect of Non Financial Measures, Independent Board of Commissioners, and Audit Quality against Firm Value, With Cost of Equity as a Moderating Variable (Published)
This study aims to analyze the effect of non-financial measures, independent board of commissioners, and audit quality on firm value, with the cost of equity as a moderating variable. The method used in this research is descriptive and verification methods. The data source is secondary data from the annual reports of manufacturing companies in the 2013-2016 period which are listed on the Indonesia Stock Exchange as many as 97 companies with 388 companies. The results showed that there are non-financial measures of customer perspective and internal process perspective, independent board of commissioner, and audit quality significantly influence firm value. Cost of equity as a moderating variable makes the influence of the independent board of commissioner weak against firm value. While the growth and learning perspective variables do not really affect the firm value. Cost of equity strengthens the influence of non-financial measures customer perspective on firm value, while in the internal process perspective, growth and learning of non-financial measures and audit quality are weak. The cost of equity will strengthen variables that can support the wishes of shareholders and will weaken variables that are independent of board of commissioner and audit quality. Other results require large costs to increase firm value. Firm value can be increased by increasing non-financial activities, the number of independent board of commissioner shares and conducting audit quality by reducing the amount of cost of equity that can weaken the value of firm value.
This study investigates how overall sustainability disclosures and it’s disaggregate dimensions of environment, social and governance affect market value of firms in Nigeria as an emerging economy using company’s’ specific disclosures. Tobins Q were used to proxy firm market value. The study selected 93 out of 120 non-financial firms listed on the Nigerian Stock Exchange as at 2015. Ex Post Facto research design was adopted and the secondary data was collected from annual reports of sampled firms from 2006 to 2015 through content analysis. The data were analysed with descriptive statistics, correlation analysis, principal component analysis while pooled ordinary least squares regression was employed to test formulated hypotheses. The analysis showed that overall sustainability disclosures have significant positive effects on firm value. When treated individually, environmental sustainability disclosures and corporate governance disclosures have a significant positive effect on market value of firm. The study also reveal that social sustainability disclosures have negative and insignificant effect on market value of firm. Based on these findings, the study recommended among other that companies should foster greater sustainability and long-term value creation by integrating sustainability metrics into their reporting model and strategy. Firms in Nigeria should adopt and disclose environmental friendly policies since it potray their commitment towards achieving the goal of sustainable development.
The Effect of the Brand Value on Firm Value: An Empirical Implementation on Global Brands (Published)
The present study tested the effect of the brand value on market values of the firms traded on global scale. Within this scope, the study sample consisted of the firms included in “The Best 100 Brands” which is annually announced by Interbrand continuously for 2001 -2012. The effect of brand values of such global enterprises acting in different sectors on stock prices was tested through panel regression by considering possible lag effects. The outcomes obtained from the study showed that the brand value (current and lag effects) has a positive and statistically significant effect on stock prices.
THE EFFECT OF COMMODITY PRICE CHANGES ON FIRM VALUE: STUDY OF FOOD AND DRINKS SERVICE INDUSTRY IN NIGERIA (Published)
This paper examines the effect of commodity price changes on firms’ value in the food and beverage industry in Nigeria given the frequent changes in the prices of raw materials and inflation. Using the descriptive survey research design, the study focused on secondary data obtained from the annual reports of 11 firms registered on the stock exchange, whose records provided the information required for the study. Revenue, cost of sales, and stock price were computed in order to represent company price of commodity from 2009 to 2013; while firm value comprises Earnings per Share, Earnings before Interests and Taxes and Total Assets. Findings indicate, a significant positive relationship between commodity price and firm value (p<0.05); a joint relationship between revenue, cost of sales, stock price and firm value (p=0.000); a positive slope (B= 0.221) suggesting that an increase in commodity price between 2009 and 2013, led to a proportional increase in firm value. This implies that due attention has to be paid to the issue of raw material sourcing and pricing in Nigeria. Conclusively, price fluctuation, no matter how little or much, will directly impact the price of raw materials and production of goods and services. Government and management of these industries need to pre-empt raw material price fluctuations in order to have a stable and progressive returns from investment. Arbitrary pricing of products is detrimental to progressive firm performance where market is competitive
Financial Ratios and Firm’s Value in Bahrain Bourse (Review Completed - Accepted)
This paper attempts to measure how financial ratios explain the firms’ value through price earnings ratio or market to book ratio in the Bahrain Bourse. All listed companies in Bahrain Bourse, with the exception of the closed ones, are used over the period of 1995 to 2013. Using all the main categories in financial ratios such as profitability, liquidity, efficiency and debt, the paper founds that return on assets (ROA) is the most determinant factor in explaining the market value followed by financial leverage and beta. Furthermore, the findings revealed that size of the firm also has a significant effect on the market value. Size of the firm is measured through total assets and Tobin’s Q ratio. In this respect, investors perceive different signals from small firms compared to large ones, and from growth firms compared to no-growth firms. On the sector analysis, it is found that ROA is the main determinant factor for explaining the value of the firm