Firms Life Cycle and Ohlson Valuation Model: Evidence from Iran

Etemadi, Hossein; Mougouie, Forough Rahimi

doi:10.18488/journal.aefr/2015.5.4/102.4.641.652

Cited by 3 publications

(1 citation statement)

References 23 publications

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“…(2)* 0 -20% 5 1 1 5 (1)* *) If the total score of AGE, SG, and CE low (less than 7.5), then the score of DP used is the lowest (1 or 2). Source: Etemadi and Mougouie (2015).…”

Section: Methodsmentioning

confidence: 99%

Dynamics of Firm’s Capital Structure Along The Life Cycle of Indonesian Manufacturing Firms

Cempakasari

Firdaus

Hardiyanto

2019

ijbe

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Life cycle of the firm has an important role in the dynamics of firm's capital structure. A firm will take different funding decision along the life cycle because the firm's characteristics that affect the capital structure will adjust itself as the tranformation of the life cycle occuring. The research objectives were to analize the dynamic of firm's capital structure across three-life cycle stages of Indonesian manufacturing companies listed with a total sample of 121 companies observed during the period from 2011 to 2016. By using dynamic panel data analysis with Generalized Method of Moments (GMM) model, we find that profitability and liquidity affect the firm's life cycle for a growing stage, meanwhile the fixed asset, growth opportunities, profitability, and liquidity affect the capital structure for a mature stage, whereas only liquidity that affects capital structure for a decline stage. The coefficient of lag dependent variable of GMM model representing the previous year capital structure showed an adjustment rate of capital structure. The lowest speed of adjustment occurred on the decline stage which was orderly followed by the growth and mature stage.Abstrak: Siklus hidup perusahaan memiliki peranan penting dalam dinamika struktur modal suatu perusahaan. Perusahaan akan memiliki keputusan pendanaan yang berbeda pada setiap siklus hidupnya, karena karakteristik perusahaan yang mempengaruhi struktur modal akan berubah mengikuti perkembangan siklus hidup yang terjadi. Tujuan dari penelitian ini menganalisa dinamika struktur modal perusahaan selama tiga tahap siklus hidup yang terjadi pada perusahaan manufaktur go public di Indonesia, dengan total jumlah 121 perusahaan yang diamati selama periode 2011-2016. Dengan pengolahan data yang dilakukan dengan analisis data panel dinamis dengan model Generalized Method of Moments (GMM), kami menemukan bahwa variabel yang berpengaruh pada siklus hidup growth adalah profitabilitas dan likuiditas perusahaan. Berbeda halnya pada siklus hidup mature, variabel yang memiliki pengaruh signifikan terhadap struktur modal adalah aset tetap, pertumbuhan, profitabilitas, dan likuiditas perusahaan. Sementara pada siklus hidup decline, variabel yang memiliki pengaruh signifikan terhadap struktur modal adalah likuiditas perusahaan. Nilai koefisien lag variabel terikat pada model GMM yang mewakili struktur modal tahun sebelumnya menggambarkan kecepatan perusahaan dalam menyesuaikan struktur modalnya. Tingkat kecepatan penyesuaian struktur modal terendah ada pada siklus hidup decline yang diikuti berturut-turut oleh perusahaan yang berada pada siklus hidup growth dan siklus hidup mature.

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“…(2)* 0 -20% 5 1 1 5 (1)* *) If the total score of AGE, SG, and CE low (less than 7.5), then the score of DP used is the lowest (1 or 2). Source: Etemadi and Mougouie (2015).…”

Section: Methodsmentioning

confidence: 99%

Dynamics of Firm’s Capital Structure Along The Life Cycle of Indonesian Manufacturing Firms

Cempakasari

Firdaus

Hardiyanto

2019

ijbe

View full text Add to dashboard Cite

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Is tax-related information value relevant? Empirical study in the Canadian setting

Zeng

2024

JEAS

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PurposeThis study aims at examining the value relevance of tax-related information in Canada. Tax-related information in this study includes taxable income, tax aggressiveness, and tax risk (i.e., unsustainable tax planning).Design/methodology/approachThis study analyzes the Canadian listed firms covering the period of 2012–2021 using the Feltham–Ohlson valuation model.FindingsThe findings are: (1) taxable income provides incremental value relevance information; (2) tax risk reduces the value relevance of both taxable income and accounting income and (3) tax aggressiveness reduces the value relevance of accounting income but not of taxable income. Further tests show that the COVID-19 pandemic increases the value relevance of taxable income but decreases the value relevance of accounting income. An analysis of the association between stock price volatility and tax-related information documents that taxable income and accounting income are both informative. Tax risk reduces the informativeness of taxable income, but tax aggressiveness and the pandemic do not.Research limitations/implicationsThe sample in this study covers the period up to 2021. Future research could use more recent data. Additionally, this study examines the Canadian setting. The results may not be generalized to other countries that have different accounting and tax rules.Originality/valueThis study sheds light on whether tax aggressiveness and tax risk affect the value relevance of taxable income and accounting income separately. In addition, to our knowledge, this is the first study that examines whether tax-related information is informative about stock price volatility.

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Information comptable et prévisions boursières : Le cas Tunisien

Salem¹,

Albouy²

2020

Recherches en Sciences De Gestion

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Dans quelle mesure l’information comptable divulguée par les entreprises cotées permet de faire des prévisions fiables concernant l’évolution de leur valeur ? La question est d’importance pour les investisseurs dans leur processus de décision. Ohlson (1995) et Feltham et Ohlson (1999) ont développé une méthodologie permettant de mettre en évidence la pertinence des chiffres comptables. Le modèle d’Ohlson modélise une relation entre la valeur boursière et les informations financières et non financières. Sa contribution majeure se synthétise par l’intégration de la valeur des fonds propres, des résultats comptables et des « autres informations » dans un même modèle. L’objectif de cet article est de tester la pertinence d’une variable « autres informations » dans le modèle d’Ohlson sur un échantillon d’entreprises tunisiennes cotées portant sur la période 2012 à 2017. Ainsi nous étudions le contenu informationnel supplémentaire qu’apporte la variable cash-flow d’exploitation, par rapport aux variables classique comme le résultat et la valeur comptable. Nos résultats corroborent les travaux récents qui montrent que le résultat comptable est la variable la plus pertinente dans la prédiction des cours boursiers des entreprises. L’ajout de la variable cash-flow d’exploitation améliore le pouvoir explicatif du modèle de base qui combine le résultat et la valeur comptable. Ces résultats obtenus sur un marché financier émergent comme celui de la Tunisie apportent un éclairage intéressant sur l’information comptable.

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Firms Life Cycle and Ohlson Valuation Model: Evidence from Iran

Cited by 3 publications

References 23 publications

Dynamics of Firm’s Capital Structure Along The Life Cycle of Indonesian Manufacturing Firms

Dynamics of Firm’s Capital Structure Along The Life Cycle of Indonesian Manufacturing Firms

Is tax-related information value relevant? Empirical study in the Canadian setting

Information comptable et prévisions boursières : Le cas Tunisien

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