Drivers of Firm’s Value: Panel Data Evidence from Indian Manufacturing Industry

Abstract

<p>The purpose of this paper is to classify the value drivers into broad categories and then identify the major drivers of firm’s value for Indian manufacturing industry and also work out the sectorial sensitivity of value drivers. To achieve the objectives of the study we first derive the value driver’s model next we use panel regression with different model specifications to empirically analyse the major drivers of firm’s value. Our study reveals that sales, net margin, book value, dividend per share, beta and earnings per share are the six major financial drivers of value. All the strategic drivers when included in the model have significant relation with value without disturbing the r-square of the model. Thus, it is clear that apart from generic financial drivers, firms need to put more attention on strategic choices they make, because it is the strategic choice that will give firms an edge over others in developing economies like India. Further, we also observe sector specific priorities of the value drivers. This paper provides academicians and practitioners with an overview of the applicability of value drivers for Indian manufacturing industry. Further, the study will fill the gap in literature by adding value drivers’ evidence from one of the fastest growing economies in the world and will benefit researchers in arriving at common consensus for value drivers in emerging economies. </p>

Financial Value, Strategic Value And Macroeconomic Value Bank Shariah Di Indonesia

“…Salah satu bentuk informasi keuangan perusahaan Dalam rangka meningkatkan kinerjanya, perbankan syariah harus mampu untuk mengidentifikasi faktor-faktor yang mempengaruhi kinerja perbankan syariah. Menurut Tiwari (2015), drivers dapat digunakan untuk menciptakan nilai bagi perusahaan dengan menemukan keunikan-keunikan sebagai penciri perusahaan melalui proses indentifikasi drivers yang yang berpengaruh terhadap peningkatan nilai bagi para stakeholders. Penciptaan nilai bagi stakehorders sangtlah penting dalam rangka untuk penghimpunan dana bagi perusahaan.…”

“…Ketepatan proses identifikasi drivers akan memberikan keuntungan bagi perusahaan untuk memetakkan nilai-nilai keunggulan yang dapat meningkatkan kesan dan harapan bagi para stakeholders terhadap perusahaan. Tiwari (2015) mengembangkan konsep drivers of firms value kedalam dua konsep utama yaitu financial value drivers dan strategic value drivers dengan masing-masing klasifikasi indikator untuk mengukur kedua konsep drivers tersebut. Klasifikasi kedua konsep tersebut dilakukan untuk mengidentifikasi drivers performace perusahaan dalam rangka menciptakan nilai bagi perusahaan.…”

“…Perlunya indentifikasi faktor-faktor internal dan eksternal yang mempengaruhi kinerja bank syariah sangatlah penting. Faktor internal dapat diindentifikasi berdasarkan financial valeu dan strategic value yang diterapkan (Tiwari, 2015). Dalam penilaian mengenai kinerja bank syariah tentunya tidak dapat dipisahkan dengan kondisi makro ekonomi negara dimana kinerja bank syariah sangat sensitif dengan kondisi makro ekonomi (Al Kayed et al, 2014).…”

Economic Value Drivers for Brazilian Agricultural Cooperatives

“…The value-based management (VBM) model has been gaining prominence in the literature on wealth generation by investors. Its main objective is to maximize the value of a company to its shareholders (Copeland et al, 2002;Martin & Petty, 2004;Cabello & Parisi 2008;Kumar, 2015;Russo & Parisi, 2017).…”

“…Management models contribute to decision making through value drivers, which are variables that have a significant influence on the value created by organizations (Rappaport, 2001;Hall, 2002;Copeland et al, 2002;Kazlauskiene & Christauskas, 2008;Assaf Neto, 2014;Kumar, 2015) and can be controlled by organizational management (MacDiarmid et al, 2017;L.E.K. Consulting, 2017).…”