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Corporate Governance and Value Relevance in Indonesia Manufacturing Companies

  • MURDAYANTI, Yunika;ULUPUI, I Gusti Ketut Agung;PAHALA, Indra;INDRIANI, Susi;SUHERMAN, S.
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.335-346
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    • 2020
  • This study aims to describe the role of corporate governance as a moderator in electronic financial disclosure that adopts Extensible Business Reporting Language (XBRL) and Company Characteristics on value relevance. The population in this study was all manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2018, totaling 166 companies. The sampling technique used purposive sampling method, namely, manufacturing companies that publish fully audited financial statements by December 31 of the year 2017-2018. The method used in this research is a quantitative description using the financial statements of manufacturing companies listed on the Indonesia Stock Exchange that have adopted XBRL during the 2017-2018 period. The data analysis method used is multiple regression analysis with moderating variables. The results of this study show a negative and insignificant effect of XBRL on value relevance, a significant negative effect of size on value relevance, a positive and insignificant effect of growth on value relevance, and a significant positive effect of profit on value relevance; meanwhile, corporate governance moderation variable has an insignificant effect in all hypotheses. Suggestions are to increase the number of variables that have an important role in value relevance and expand the number of research objects to be compared.

Stock Ownership Structure and Its Effects on Capital Structure and Corporate Value: Evidence from Indonesia

  • RAGIL, Siti;RAHAYU, Sri Mangesti;SUHADAK, uhadak
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.7
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    • pp.423-431
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    • 2021
  • This research (1) examines the effect of stock ownership structure on capital structure; (2) explains the effect of stock ownership structure on corporate value; and (3) investigates the influence of capital structure on corporate value. This research is categorized as a quantitative research, which is directed to test various theories. In this study, the population of all consumption companies listed on the Indonesia Stock Exchange (IDX) consist of 38 companies. Population data in this study are all consumption companies, which have gone public in the period from 2010 to 2015. In this study, given the objectives and problem formulation and hypothesis, the analysis method used is Generalized Structural Component Analysis (GSCA). Ownership structure has a significant effect on capital structure; ownership structure has no significant effect on corporate value; capital structure has a significant effect on corporate value; corporate value has a significant effect on capital structure. Previous research found different results. Some researchers found a positive relationship and other researchers found a negative relationship, and there are studies that found both significant and non-significant effects. The inconsistency of previous research results prompted the researchers to examine the effect of ownership structure on capital structure and corporate value.

The Effect of Board Composition and Ownership Structure on Firm Value: Evidence from Jordan

  • Rafat Salameh, SALAMEH;Osama J., AL-NSOUR;Khalid Munther, LUTFI;Zaynab Hassan, ALNABULSI;Eyad Abdel-Halym, HYASAT
    • The Journal of Asian Finance, Economics and Business
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    • v.10 no.2
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    • pp.163-174
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    • 2023
  • This study aims to investigate the effect of the composition of the board and ownership structure on a firm's value in Jordanian firms. Specifically, it aims to determine the effect of board size, (CEO) duality, and family, foreign, institutional, and government ownership on a firm's value. An ordinary least square regression (OLS) was employed to examine the study hypotheses in a sample of 35 Jordanian industrial firms (175 firm-year observation) for a period of five years from 2016-2020. As measured by Tobin's Q (Q ratio) and market-to-book (MB ratio) for Jordanian industrial firms listed on Amman Stock Exchange (ASE). The result found that foreign ownership, institutional ownership, and family ownership have a significant and positive effect on firm value. By contrast, government ownership does not have a significant effect on firm value. With respect to board composition (CEO duality and board size), the study results found no evidence to support the effect of board composition on firm value. The study recommended the concerned authorities with several recommendations, most notably: taking the necessary measures to ensure the continuity and growth of family businesses because of their positive impact on the value of the company and economic growth, spreading awareness about how governance protects the interests of investors.

A Study on CSV of Social Economy and Consumer Perspective (사회적경제와 소비자 관점의 공유가치창출(CSV) 연구)

  • Lee, Young-Il;Kim, Young-Shin
    • Journal of Distribution Science
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    • v.13 no.12
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    • pp.53-63
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    • 2015
  • Purpose - Recently, creating shared value (CSV) has attracted attention through plan sustainability and the growth of corporate management. Porter and Kramer (2011) defined the core concept of CSV as social value, economic profits, improvements in the economic social condition, and reinforcing competitiveness. The purpose of CSV, which is to pursue economic profits through a social solution to the problem, agrees with managing the objective of a social enterprise that prioritizes the pursuit of profits through the realization of a social purpose. Today, CSV studies focus on CSR and sustainability and reinforce competitiveness. However, few studies focused on the social economy. Precedent studies examined CSV using a company example, and few studies exist from the perspective of consumers and the point of view of a market society. Research design, data, and methodology - Therefore, this study examines CSV in comparison to a background of the social economy. This study also investigates and analyzes the concept of social value from the point of view of consumers, social problems, consumption value, corporate value, and the influence of consumers. This article develops three hypotheses. Hypothesis 1 investigates the correlation with social innovation that consumers thought as being necessary for social innovation by a company. Hypothesis 2 is used to confirm the influence of consumers in CSV. Therefore, this article investigates the influence of consumers on consumption action for companies that are indifferent to social problems. Hypothesis 3 is used to verify the correlation between the value that consumers demand through consumption and the corporate value that companies pursue other than profits. The three hypotheses were adopted and met the standard for suitability. Results - The importance of the CSV study from the consumer perspective was confirmed using the influence of consumers on CSV. Because the objective of company activities is either the consumer or the market, the influence that extends to interactions between the company and consumers to ensure the success of a business is significant. Regarding the CSV study, because it was an initial study, various approaches are subsequently developed. However, conceptual and practical case studies on CSV currently exist that may be used to verify the factors that comprise CSV. Therefore, the company example may enable verification of the factors that influence the composition of CSV through identification from the consumer perspective. In addition, studying CSV as an action result (of consumer satisfaction, of a company's profits and competitiveness, and of society's cancellation of a social problem) may enable the realization of a practice paradigm as opposed to simply thought and faith. Conclusions - First, this study confirms the social value of a business through the feasible and common pursuit of consumers by corporations. Second, customer influence accounts for an important part of CSV. Third, shared value commonly provides a necessary advantage to consumers, corporates, and society, and contributes to the economy and healthy social development. Fourth, corporates can conduct a business, generate profits, and realize value through improvements in social problems and by addressing their competitive strengths and weaknesses.

Decision Analysis with Value Focused Thinking as a Methodology to Access Air Force Officer Retention Alternatives

  • Moon Sang-ho
    • Proceedings of the Korean Statistical Society Conference
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    • 2004.11a
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    • pp.105-110
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    • 2004
  • Decision Analysis(DA) using Value Focused Thinking(VFT) can be an excellent process to deal with hard decisions. The intent of this research is to provide better understanding of the United States Air Force(USAF) officer retention problem. This thesis effort involves building a VFT model to find out more effective alternatives in retaining pilots and non pilots. This model, in conjunction with the results of the post analysis, shows an example of the application of a VFT approach to the USAF officer retention problem.

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ANALYSIS OF SOME NONLOCAL BOUNDARY VALUE PROBLEMS ASSOCIATED WITH FEEDBACK CONTROL

  • Lee, Hyung-Chun
    • Bulletin of the Korean Mathematical Society
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    • v.35 no.2
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    • pp.325-338
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    • 1998
  • Some nonlocal boundary value problems which arise from a feedback control problem are considered. We give a precise statement of the mathematical problems and then prove the existence and uniqueness of the solutions. We consider the Dirichlet type boundary value problem and the Neumann type boundary value problem with nonlinear boundary conditions. We also provide a regularity results for the solutions.

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Robust Singular Value Decomposition BaLsed on Weighted Least Absolute Deviation Regression

  • Jung, Kang-Mo
    • Communications for Statistical Applications and Methods
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    • v.17 no.6
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    • pp.803-810
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    • 2010
  • The singular value decomposition of a rectangular matrix is a basic tool to understand the structure of the data and particularly the relationship between row and column factors. However, conventional singular value decomposition used the least squares method and is not robust to outliers. We propose a simple robust singular value decomposition algorithm based on the weighted least absolute deviation which is not sensitive to leverage points. Its implementation is easy and the computation time is reasonably low. Numerical results give the data structure and the outlying information.

The Effect of Mobile Tourism Information Service Features on Perceived Value, Satisfaction, and Using Intentions (모바일 관광정보 서비스특성이 지각된 가치 만족도 및 이용의도에 미치는 영향 연구)

  • Lee, Sung-Joon;Dai, Jing
    • Journal of Distribution Science
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    • v.12 no.12
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    • pp.75-82
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    • 2014
  • Purpose - Due to the rapidly changing environment, the needs of information distribution are emphasized more than ever before. As information changes to cater to diversity, professionalism, and detailed segmentation, this information is produced exponentially. Many researchers working in intelligence agencies are feeling the need to establish a comprehensive information management and information distribution system in a systematic and more effective manner. Mobile marketing is based on communication when consumers can access information using GPS systems whatever their location may be when they are on a trip. Until recently, Korean companies have been struggling to perform well in the larger mobile tourism information service (MTIS) for Chinese tourists, which is regarded as a blue ocean area. The principal dimensions of the characteristics of a mobile tourism information service were analyzed, and the influence on perceived value and satisfaction was identified. Moreover, the relationship among the variable satisfaction and using intentions was empirically analyzed. Research design, data, and methodology - This study examined the structural relationship among mobile tourism information features, perceived value, satisfaction, and behavioral intentions. It is based on analyzed data from questionnaires involving advanced research. A questionnaire survey targeting Chinese students using a mobile tourism information service in Korea was conducted. A total of 230 questionnaires were circulated, and 221 questionnaires were used for empirical analysis, excluding invalid data. The data were analyzed with structural equation modeling with SPSS 21.0 statistic package reliability analysis, factor analysis, and regression analysis were implemented, and the effects of the mobile tourism information service features on perceived value, satisfaction, and using intentions were presented. Results - First, mobile tourism information service features have a direct positive effect on the practical value, and do not affect the hedonic value. Second, perceived value has a statistically positive effect on satisfaction. Third, perceived value has a positive effect on behavioral intentions. Fourth, satisfaction has a direct positive effect on behavioral intentions. Conclusion - MTIS (mobile tourism information service) involves personal, social, and technical characteristics. We have analyzed the effects of mobile tourism information service on perceived value, and on satisfaction and using intentions. First, the study shows that the characteristics of mobile tourism information service and perceived value in relation to mobile tourism information service usage are important for marketing in the Chinese market. Moreover, after using a mobile tourism information service, the effect on practical value is more than on hedonic value. We could not analyze the program for tourism information service extensively, and used only questionnaires from Chinese students in Korea. In the future, there should be research on the programs for a tourism information service. We expect to study the MTIS program in greater detail, and to improve the quality and reputation of MTIS through the analysis of its program. We hope that this research will allow an evaluation of the relationship between Korea and China regarding MTIS.

The Relationships between Product Quality Cues and Perceived Values based on Gender Differences at a Food Select Shop

  • Yim, Myung-Seong
    • The Journal of Industrial Distribution & Business
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    • v.11 no.10
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    • pp.59-73
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    • 2020
  • Purpose: The ultimate purpose of this work is to investigate gender differences in the relationships between product quality cues and perceived values at a food select shop. Specifically, this study examines the effects of internal and external cues, which are indicators of product quality, on emotional and social values based on gender differences. Research design, data and methodology: In this study, a questionnaire technique was used to collect the data necessary to test the proposed model. 183 data were collected through this technique. PLS SEM (Partial Least Squares Structured Equation Model) was used to test the research model. Results: First, there is no gender difference between intrinsic cue and emotional value. When using male and female data, there was no significant causal relationship between intrinsic cues and emotional values. Second, we found no gender difference between intrinsic cue and social value. When analyzed with female data, there was no significant causal relationship between intrinsic cue and social value. On the other hand, in the case of men, it was found that a weak causal relationship exists. Third, this study found gender difference between extrinsic cue and emotional value. In the case of men, it was found that a weak causal relationship exists, whereas in the case of women, a strong causal relationship exists between extrinsic cue and emotional value. Fourth, we found gender difference between extrinsic cue and social value. In the case of men, there was no causal relationship, whereas in the case of women, there was a strong causal relationship between extrinsic cue and social value. Finally, we found that there are moderating roles of gender in the relationship between external cues and perceived quality. Conclusions: As a result of analysis, it is necessary to focus on extrinsic clues of product in order to increase the perceived emotional and social values of women. On the other hand, in order to improve the perceived emotional and social values of men, it is necessary to pay attention to both intrinsic and extrinsic cues of product. Therefore, it is necessary to consider what clues and values are important to core customers.

The influence of fashion lifestyle and consumption value on the difficulty of discarding unused fashion products (패션제품 버리기 어려움과 패션라이프스타일 및 소비가치의 효과)

  • Ji, Hye Kyung
    • Journal of the Korea Fashion and Costume Design Association
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    • v.21 no.2
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    • pp.27-41
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    • 2019
  • This study aimed to investigate the influence of fashion lifestyles and consumption values on the difficulty of discarding unused fashion products. To achieve this purpose, this study surveyed female consumers aged 20s-50s to gain empirical analysis in July 2018. Data were analyzed for 236 subjects who were selected through online and offline sampling. The results were as follows. First, consumers tend to have difficulties discarding unused fashion goods. Consumers that have a higher income tend to have greater difficulty when choosing to discard items. Factors influencing the difficulty in discarding items were emotional attachment, usefulness in the future, economic value, and the lack of organizing skills. Usefulness in the future and the lack of organizing skills are the most significant factors influencing the discarding difficulty. Second, discarding difficulty had a significant relationship with fashion lifestyle, indicating that consumers seeking a fashion lifestyle that purchase more expensive brands tend to have more difficulty when discarding items. Third, each factor had a meaningful relationship with fashion goods consumption values. Those pursuing conspicuous value showed a greater difficulty discarding items due to emotional attachment, economic value, and lack of organizing skills. Pursuance of situational value showed a higher discarding difficulty than economic value factors. Pursuance of practical value showed a higher difficulty than both usefulness in future situations and economic value factors. Pursuance of differentiation value showed a higher discarding difficulty than emotional attachment and usefulness in the future factor. This study will help understanding consumers psychological mechanisms that experience difficulty in terms of the discarding of unused fashion goods.