Tag Archives: firm’s value

Evaluation of Integrated Reporting and the Value of Listed Manufacturing Firms in Nigeria (Published)

Integrated reporting is gaining attention of world-leading organizations and countries who are demonstrating global leadership in this emerging field of corporate reporting. However, the disclosure of non-financial information and its integration with financial information (integrated reports) and the benefits to the company and other stakeholders is not yet properly assessed in Nigeria. Prior studies in this area in different environments have produced mixed results and conclusions. This study examined the effect of integrated reporting on the value of listed manufacturing companies in Nigeria. The study adopted ex-post facto research design. The population of the study comprised 53 manufacturing companies quoted on the Nigerian Stock Exchange (NSE) as at 30th June 2017, from which 38 companies were purposively selected comprising companies from consumer goods and industrial goods during the study period (2012-2016). Data were sourced from the published audited financial statements validated by the external auditors’ report. Descriptive and inferential statistics using regression analyses were employed. The findings revealed that integrated reporting had significant effects on firm’s value measured by Tobin’s Q (TQ) (F(4, 131) = 22.75, Adj. R2 = .1470, p <0.05). Disclosure of Financial Capital (DFC) had a significant negative effect on TQ (β1 = -4.41; t(135)= -6.71, p <0.05); Disclosure of Manufactured Capital (DMC) had an insignificant positive effect on TQ (β2 = 0.051; t(135)= 0.14, p >0.05); Disclosure of Intellectual and Human Capital (DIHC) had an insignificant negative effect on TQ (β3 = -0.994; t(135)= -0.69, p >0.05); and Disclosure of Natural Capital (DNC) had an insignificant negative effect on TQ (β4 = -0.438; t(135)= -0.41, p >0.05). Firms’ size (SIZE) and leverage (FLEV) had significantly controlled the influence of integrated reporting on TQ (F(6,129) = 24.08, Adj. R2 = .1636, p <0.05). The study concluded that integrated reporting is still at its early stage of adoption in Nigeria and could be useful in determining the firm’s value of listed manufacturing companies in Nigeria. It was recommended that regulators should increase awareness, training and provide a framework for the mandatory adoption of integrated reporting in Nigeria.

 

Keywords: Disclosure, Leverage, Size, firm’s value, integrated reporting, integrated thinking, tobin’s q. transformation, value creation

Evaluation of Integrated Reporting and the Value of Listed Manufacturing Firms in Nigeria (Published)

Integrated reporting is gaining attention of world-leading organizations and countries who are demonstrating global leadership in this emerging field of corporate reporting. However, the disclosure of non-financial information and its integration with financial information (integrated reports) and the benefits to the company and other stakeholders is not yet properly assessed in Nigeria. Prior studies in this area in different environments have produced mixed results and conclusions. This study examined the effect of integrated reporting on the value of listed manufacturing companies in Nigeria. The study adopted ex-post facto research design. The population of the study comprised 53 manufacturing companies quoted on the Nigerian Stock Exchange (NSE) as at 30th June 2017, from which 38 companies were purposively selected comprising companies from consumer goods and industrial goods during the study period (2012-2016). Data were sourced from the published audited financial statements validated by the external auditors’ report. Descriptive and inferential statistics using regression analyses were employed. The findings revealed that integrated reporting had significant effects on firm’s value measured by Tobin’s Q (TQ) (F(4, 131) = 22.75, Adj. R2 = .1470, p <0.05). Disclosure of Financial Capital (DFC) had a significant negative effect on TQ (β1 = -4.41; t(135)= -6.71, p <0.05); Disclosure of Manufactured Capital (DMC) had an insignificant positive effect on TQ (β2 = 0.051; t(135)= 0.14, p >0.05); Disclosure of Intellectual and Human Capital (DIHC) had an insignificant negative effect on TQ (β3 = -0.994; t(135)= -0.69, p >0.05); and Disclosure of Natural Capital (DNC) had an insignificant negative effect on TQ (β4 = -0.438; t(135)= -0.41, p >0.05). Firms’ size (SIZE) and leverage (FLEV) had significantly controlled the influence of integrated reporting on TQ (F(6,129) = 24.08, Adj. R2 = .1636, p <0.05). The study concluded that integrated reporting is still at its early stage of adoption in Nigeria and could be useful in determining the firm’s value of listed manufacturing companies in Nigeria. It was recommended that regulators should increase awareness, training and provide a framework for the mandatory adoption of integrated reporting in Nigeria.

Keywords: Disclosure, Leverage, Size, firm’s value, integrated reporting, integrated thinking, tobin’s q. transformation, value creation

Good Corporate Governance, Capital Structure, and Firm’s Values : Empirical Studies Food and Beverage Companies In Indonesia (Published)

This study aims to determine the effect of good corporate governance and capital structure to the firm’s value on food and beverage companies listed on the Indonesia Stock Exchange. This study used a sample of 7 food and beverage companies listed in Indonesia Stock Exchange 2010-2014. Data type of research is secondary data obtained from the annual financial statements of the company. The analysis technique used is multiple linear regression methods using panel data random effect model approach. The results showed that simultaneous two independent variables, namely good corporate governance which is proxied by an independent commissioner, institutional ownership, managerial ownership and quality auditors, and the company’s capital structure together affect the value of the firm. Partially show that institutional ownership, managerial ownership and quality auditor affect the value of the firm. While independent and its capital structure does not affect the value of the firm.

Keywords: Capital Structure, Good corporate governance, firm’s value