Relevance of Value Owned Profit and Cash Flows Based on the Life Cycle in the Growth Stage of Food and Beverages Companies Listed on the Indonesia Stock Exchange
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 05
Abstract
This study aims to determine the relevance of the value of earnings and cash flow as a measure of accounting performance against market value when the company is in the growth life cycle. The sample of this company is a food and beverage company listed on the Indonesia Stock Exchange in 2006-2010. The sample was selected using the purposive judgment sampling method and 16 companies were sampled. The results showed that (1) earnings have value relevance in measuring the market value of the company at the stagegrowth, (2) profit is significant to the market value of companies that are in the company's life cycle at the growth stage, (3) cash flows are not significant to the market value of companies that are in the company's life cycle at the growth stage, (4) profit is an option for investors in assessing whether they will invest in the company. With a relatively short time, investors are required to move quickly and precisely in assessing the company, therefore profit is the right component in completing work.
Authors and Affiliations
Bimo Muhammad, Dr. Tri Joko Prasetyo,SE, M. Sc. , Akt , Dr. Reni Oktavia, SE, M. Sc
Keywords
Related Articles
- EP ID EP727093
- DOI 10.47191/jefms/v6-i5-47
- Views 55
- Downloads 0
The Influence of Transactional Leadership and Intellectual Intelligence on Employee Performance through Job Satisfaction as an Intervening Variable at BAWASLU NTB Province
This research aims to analyze the effect of transactional leadership and intellectual intelligence on employee performance with job satisfaction as an intervening variable at BAWASLU NTB Province. The research method use...
Marketing Strategy to Penetrate the Global Markets: A Case Study of DD Orchids Nursery SMEs in Dadaprejo, Batu City, East Java
Internationalization is the dream of almost all companies, including micro, small and medium scale enterprises or known as MSMEs. , threats, strengths, and weaknesses of MSME ornamental plants for orchids DD Orchid Nurse...
The Development of SME's in Pre and Post-Pandemic Nigeria: The Role of Banks
This research paper explores how banks have impacted the growth of small and medium enterprises (SMEs) in Nigeria from 1991 to 2021. The review of existing literature discussed the challenges faced by SMEs due to the COV...
Auditor Ethics Moderates the Effect of Independence and Competence on Audit Quality
The auditors are expected to improve the quality of the audit through independence, competence, and are guided by the ethics of auditors. This research aims to test the effect of auditor independence and competence of au...
Academics' Work Life Balance During Pandemic
Some problems occur regarding work-life balance during the pandemic. This study tries to understand how lecturers face stressful situations related to job changes from traditional working in the office (before the pandem...