What Drives the Stock Returns? Examining The Fundamental Factors on the Consumer Defensive Sector Companies

doi:10.47750/qas/24.194.21

Cited by 3 publications

(1 citation statement)

References 23 publications

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“…PBV (Price to Book Value) is one of the proxies to calculate the company's value (Huang et al, 2023;Yeh & Liu, 2023). A high PBV indicates a good company performance, a good PBV value is greater than 1, which indicates that the stock market value is greater than the book value (Digdowiseiso, 2023;Vinocur et al, 2023). PBV of the pharmaceutical sub-sector in Indonesia market fluctuates where three companies have a PBV value of less than 1, namely: The data in Table 1 indicates that some companies in the research sample have poor performance, so their company value is still relatively low.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Company Value: Study on Pharmaceutical Companies on the Indonesia Stock Exchange

Sambo,

Sufiati,

Pura

2023

Econ. Bus. Account. Soc. Rev

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Company value is very important in investment transactions, and company management must understand the determinants to achieve company goals. The main operational goal of the company is to achieve the maximization of expected profits. Profit maximization is the company's only rational policy. This study aims to determine and examine the determinants of firm value: growth, firm size and financial performance. The research sample consisted of 9 pharmaceutical companies listed on the Indonesia Stock Exchange. Data is collected through financial statement documents for 4 years, 2018-2021. The number of data observed is 36 observational data. Data analysis used multiple regression analysis. The results showed that company growth and firm size positively and insignificantly affected firm value. Meanwhile, financial performance has a significant positive effect on firm value. The implications of the research results are theoretically as developing insight related to investment and portfolio management, then practically as information for investors in making investments.

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Section: Introductionmentioning

confidence: 99%

Determinants of Company Value: Study on Pharmaceutical Companies on the Indonesia Stock Exchange

Sambo,

Sufiati,

Pura

2023

Econ. Bus. Account. Soc. Rev

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Analysis of key influencing factors on the financial performance of Jakarta Islamic Index 30 industrial firms

Kismawadi

2024

JIABR

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Purpose The purpose of this paper is to investigate the impact of size, asset quality, asset management, financial risk, gross domestic product and inflation rate on the financial performance of companies listed on the Jakarta Islamic Index of 30 industrial firms. Design/methodology/approach Based on the selected criteria, this study analysed an unbalanced panel of data from 30 industrial companies on the Indonesian capital market that are members of the Jakarta Islamic index. Profitability is measured using the dependent variables return on assets (ROA), return on equity (ROE) and stock prices. The influence of explanatory variables of internal factors, namely, size, asset quality, asset management, financial risk, gross domestic product and inflation is investigated using pooled OLS, fixed and random effect estimation. Findings The empirical findings indicate that the scale of a company has a significant impact on its performance, asset quality, asset management and financial risk. GDP has a substantial impact on financial performance, particularly as measured by ROA and ROE. This study’s ramifications have substantial effects on a broad spectrum of stakeholders. The results of this study provide the general public and investors with a greater understanding of the factors that influence a company’s performance on the Jakarta Islamic Index 30. Research limitations/implications The implication of this research is that a deeper comprehension of the factors that influence the financial performance of companies within industrial sectors that follow Islamic finance principles can help design more effective strategies and policies. Practical implications This research has significant practical implications in a number of crucial areas. First, it provides a comprehensive comprehension of the company’s financial performance in the industrial sector in accordance with Islamic finance principles. Second, the research findings provide more precise guidance on how company size, asset quality and macroeconomic variables influence the performance of Indonesia's financial market. Originality/value The study’s authenticity and value hold considerable importance. This study introduces novel perspectives on the assessment of corporate financial performance within industrial sectors through the lens of Islamic finance principles. It offers valuable insights that have not yet been extensively investigated by scholars in the field.

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Implementation of Signaling Theory in Financial Management: A Bibliometric Analysis

Elwisam,

Muhani,

Ria

et al. 2024

RGSA

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Purpose: The objective of this research is twofold: (1) to elucidate the progression of studies pertaining to the application of signaling theory in financial management, and (2) to scrutinize the bibliometric analysis of the implementation of signaling theory in financial management. Method: The employed technique is clustering, overlay, and density of bibliometric analysis. The utilized tools include publishing platforms such as Publish or Perish, Google Scholar, and VosViewer. Results and Conclusion: The research findings indicate a limited amount of literature exploring the utilization of signaling theory in financial management. This is evident in the minimal growth in the number of papers published between 1994 and 2023, with an average of only 1 to 3 papers per year. Research Implication: Concerning the primary keywords that commonly arise in this study, specifically "theory" and "signaling theory", there exist five clusters of keywords with the utmost frequency of occurrence. Applying signaling theory in financial management has been demonstrated to enhance investors' propensity to allocate their capital. Originality/Value: The role of financial management is vital in determining the company's profitability. Implementing financial management using the signaling theory approach is a viable method to achieve profitability. The theory of signaling is instrumental in conveying signals to investors regarding the financial state of the company. The findings of this study can offer valuable understanding regarding the implementation of signaling theory in financial management, thereby serving as a basis for considering the utilization of this theory.

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What Drives the Stock Returns? Examining The Fundamental Factors on the Consumer Defensive Sector Companies

Cited by 3 publications

References 23 publications

Determinants of Company Value: Study on Pharmaceutical Companies on the Indonesia Stock Exchange

Determinants of Company Value: Study on Pharmaceutical Companies on the Indonesia Stock Exchange

Analysis of key influencing factors on the financial performance of Jakarta Islamic Index 30 industrial firms

Implementation of Signaling Theory in Financial Management: A Bibliometric Analysis

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