Capital reduction, financial characteristics and corporate governance

Lee, Chin Jinny; Lai, Syou Ching; Li, Hung Chih; Wang, Jan Chung

doi:10.1016/j.apmrv.2016.07.004

Cited by 8 publications

(5 citation statements)

References 33 publications

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“…The previous studies suggested that there were six hypotheses of companies repurchasing shares and those in different countries had different characteristics or reasons for repurchasing shares (Wansley et al, 1989;Lee et al, 2017). In Indonesia, most share repurchases were made because the companies wanted to maintain the shareholders' trust when the economic conditions were unstable.…”

Section: Discussionmentioning

confidence: 99%

“…The motives underlying the decision to withdraw shares varied based on the company's performance and how the board considered the policy. Companies might perform well or poorly, yet the motives to repurchase shares were not limited to the ideal conditions (Lee et al, 2017). Wansley et al (1989) discussed six motivations considered as motives to repurchase the shares: 1) replacing dividends or as a substitute for cash dividends; 2) improving the capital structure by optimizing the company's leverage; 3) reissuing shares when the executive incentives need to be provided; 4) taking advantage of the available cash flows due to the lack of prospective investment opportunities; 5) indicating possibility that the company is undervalued; and 6) transferring wealth from the participating to non-participating shareholders as a method to restructure the ownership components.…”

Section: Literature Reviewmentioning

confidence: 99%

“…On the other hand, the shares repurchased by the US-based companies tended to create financial concessions for the corporate overpayments. Furthermore, companies disguised their financial difficulties by reducing their capital (Lee et al, 2017). We are interested in exploring the situations in which share repurchases are made and the company is managed with certain mechanisms, both internally and externally, so that the share repurchases should be made, especially by the companies in Indonesia.…”

Section: Introductionmentioning

confidence: 99%

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Does Corporate Governance Matter in Decision Making of Stock Repurchases?

Herdiani¹

2022

JABE

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This research highlights the motivation of stock repurchase in Indonesia and how corporate governance influences the decision making to perform stock repurchases. Each country has different motivation to repurchase stocks. This study examines the motivation based on six stock repurchase hypotheses. Further, this study examines the interaction effect of both mechanisms. The data of stock repurchase were collected manually from the corporate events issued by the companies. The test is carried out based on two corporate governance mechanisms, internal and external mechanisms, which have different tendencies in the corporate governance supervision system. Based on the analysis results, stock repurchase in Indonesia is motivated to maintain the sustainability of the authority of the shareholders, especially due to fluctuated economic conditions.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Does Corporate Governance Matter in Decision Making of Stock Repurchases?

Herdiani¹

2022

JABE

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“…The FF3F model is based on the CAPM, it expands the CAPM model by evaluating another two risk factors the size and the value risk factors, which makes the model a better estimator than the other models when estimating the portfolio's performance relative to the market performance thus analysing the manager's performance [9,10]. The model is shown as:…”

Section: Fama-french Three-factor Modelmentioning

confidence: 99%

Portfolio Optimization for Six Companies in Different Industries

Han¹,

Li²

2023

BCPBM

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Portfolio optimization is an essential step in the process of asset management. Studying portfolio can help people gain greater benefits after investing their assets. This paper makes a subjective analysis of the stocks in the American stock market, and finally selects six stocks from different fields, including health care, finance, public utilities, Internet software and services, non-energy minerals, and industry for portfolio analysis. This paper uses mean-variance analysis, CAPM model and Fama-French model to get the best portfolios, and analyses portfolio performance under different methods. The results show that, in the CAPM model, "GS" gets the largest weight in the maximum Sharpe ratio portfolio and "AWK" gains the largest weights in the minimum variance portfolio. At the same time, in the Fama-French model, "GS" and "AWK" still get the largest weight in the maximum Sharpe ratio portfolio and minimum variance portfolio, respectively. This paper will be helpful to investors who pay attention to the six areas involved in this paper.

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“…Pelatihan ini tentunya harus didesain khusus untuk membantu pelaku UMKM dan pelaku bisnis kecil lainnya memahami dasar-dasar laporan keuangan dan bagaimana menerapkannya dalam kehidupan sehari-hari (Jati, 2019). Dalam pelatihan ini tentunya akan membahas konsep-konsep dasar dalam laporan keuangan, seperti neraca, laporan laba rugi, laporan perubahan atas modal dan arus kas, serta bagaimana menerjemahkan informasi tersebut untuk mengambil keputusan yang tepat dalam mengelola bisnis (Lee et al, 2017;Nour et al, 2022). Dengan adanya pelatihan ini UMKM akan mendapatkan pengetahuan dan keterampilan yang diperlukan untuk mengoptimalkan manajemen keuangannya.…”

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Meningkatkan Pemahaman Dan Keterampilan Umkm Desa Wisata Melalui Pelatihan Penyusunan Laporan Keuangan Sederhana

Antony,

Natalia

2023

JMM

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Abstrak: Pelatihan penyusunan laporan keuangan sederhana bagi UMKM desa wisata, merupakan jawaban atas permasalahan yang dihadapi oleh UMKM Binaan Desa Wisata Parungseah, yaitu rendahnya pemahaman terkait neraca, laporan laba rugi, arus kas, dan laporan perubahan atas modal serta keterampilan dalam menyusun laporan keuangan sederhana. Tujuan kegiatan ini memberikan edukasi untuk meningkatkan pemahaman dan keterampilan penyusunan laporan keuangan sederhana bagi UMKM desa wisata. Metode kegiatan ini adalah pelatihan yang dilaksanakan secara offline di Aula Desa Parungseah Kabupaten Sukabumi dengan peserta sebanyak 40 orang. Mitra kegiatan pelatihan ini adalah UMKM Binaan desa wisata Parungseah Kabupaten Sukabumi. Pada tahap evaluasi yaitu diberikan pertanyaan kepada peserta sebanyak 30 soal sebelum (pretest) dan sesudah (posttest), dengan tujuan untuk melihat kemampuan peserta. Di mana saat pretest pemahaman peserta sebesar 45,9% dan setelah penyampaian materi, nilai posttest sebesar 84,53% yang menandakan pemahaman peserta meningkat sebesar 38,64%. Adapun indicator keberhasilan program ini yaitu terselenggaranya kegiatan dengan baik dan antuasiasme dari para peserta, yang berdampak pada meningkatnya pemahaman peserta pelatihan.Abstract: Training on preparing simple financial statements for tourism village MSMEs, is the answer to the problems faced by MSMEs assisted by Parungseah Tourism Village, namely low understanding related to balance sheets, income statements, cash flows, and statements of changes in capital as well as skills in preparing simple financial statements. The purpose of this activity is to provide education to improve understanding and skills in preparing simple financial statements for MSMEs in tourism villages. The method of this activity is a training that is carried out offline at the Parungseah Village Hall, Sukabumi Regency with 40 participants. The partners of this training activity are MSMEs assisted by Parungseah Tourism Village, Sukabumi Regency. At the evaluation stage, 30 questions were given to participants before (pretest) and after (posttest), to see the participants' abilities. Where during the pretest participants' comprehension was 45.9% and after delivering the material, the posttest score was 84.53% which indicates that the participants' understanding increased by 38.64%. The indicators of the success of this program are the implementation of activities properly and the enthusiasm of the participants, which has an impact on increasing the understanding of training participants.

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Capital reduction, financial characteristics and corporate governance

Cited by 8 publications

References 33 publications

Does Corporate Governance Matter in Decision Making of Stock Repurchases?

Does Corporate Governance Matter in Decision Making of Stock Repurchases?

Portfolio Optimization for Six Companies in Different Industries

Meningkatkan Pemahaman Dan Keterampilan Umkm Desa Wisata Melalui Pelatihan Penyusunan Laporan Keuangan Sederhana

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