Liquidity and firm performance: evidence from the MENA region

Farooq, Omar; Bouaich, Fatima Zahra

doi:10.1504/ijbge.2012.047539

Cited by 8 publications

(7 citation statements)

References 28 publications

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“…Apabila perusahaan mampu melunasi kewajiban perusahaan dengan cepat, maka kinerja keuangan semakin bagus. Hal ini didukung penelitian yang dilakukan oleh Odalo dan Achoki (2016), Akenga (2015), Faroq (2012), Dermihan (2014). Penelitian tersebut membuktikan bahwa likuiditas berpengaruh positif terhadap kinerja keuangan.…”

Section: Kajian Teoriunclassified

Pengaruh Struktur Modal, Ukuran Perusahaan, Likuiditas Terhadap Kinerja Keuangan Yang Dimoderasi Inflasi

Dahlia

2019

JMIEB

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This study aims to obtain empirical evidence on the effect of capital structure, firm size, liquidity of financial performance and inflation as a moderating variable. The number of sample companies used in this study is 168 non financial companies period from 2012 to 2016. The results of this study indicate that on the capital structure have a significant negative effect of financial performance, firm size have a significant positive effect of financial performance, and liquidity have an non significant and positive effect of financial performance. Data were analyzed using panel data regression. Based on the analysis of regression panel data, we concluded that the inflation proved to have a pure moderating influence on the relationship between liquidity of the financial performance. Keyword: Capital Structure, Firm Size, Liquidity, Inflation, Financial performanceAbstrakPenelitian ini bertujuan untuk mendapatkan bukti empiris mengenai pengaruh struktur modal, ukuran perusahaan, likuiditas terhadap kinerja keuangan yang dimoderasi oleh inflasi. Jumlah sampel perusahaan yang digunakan dalam penelitian ini adalah 168 perusahaan non keuangan tahun 2012-2016. Hasil penelitian ini menunjukkan struktur modal berpengaruh negatif dan signifikan terhadap kinerja keuangan, ukuran perusahaan berpengaruh positif dan signifikan terhadap kinerja keuangan, likuiditas berpengaruh positif dan tidak signifikan terhadap kinerja keuangan. Data yang dianalisis menggunakan regresi data panel. Berdasarkan analisis regresi data panel, dapat disimpulkan bahwa inflasi sebagai variabel pure moderating antara pengaruh likuditas terhadap kinerja keuangan.Keyword: struktur modal, ukuran perusahaan, likuiditas, inflasi, kinerja keuangan

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Section: Kajian Teoriunclassified

Pengaruh Struktur Modal, Ukuran Perusahaan, Likuiditas Terhadap Kinerja Keuangan Yang Dimoderasi Inflasi

Dahlia

2019

JMIEB

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“…Agency-based theory and feedback theory also support this assumption. Agency-based theories highlight that liquid stock exhibits more information in the market and help investors to monitor firms' activities and to make profits from price appreciation (Farooq & Bouaich, 2012). Feedback theories emphasize that market liquidity increases informed investors' trading which makes share price more informative and helps the manager to take a better corporate decision, therefore enabling firms to perform well (See, Subrahmanyam & Titman 2001;Khanna & Sonti 2004).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Additionally, pricing-based theories suggest that liquid shares should trade at a premium price whereas illiquid shares at a discount which indicates a positive relation between stock liquidity and firm value (Holmström & Tirole 2001). Likewise, Farooq and Bouaich (2012) assert that the liquidity of financial assets is the key factor behind any investment which attracts more investors. Therefore, to survive in the market, illiquid assets need to offer high-risk premiums which cause discount rates to go up and firm value to go down (Loukil 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Investigating the Relationship between Stock Liquidity and Firm Value

Shamsi¹,

Quader²,

Abdullah³

2022

bpr

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Purpose: This paper aims to investigate the effect of stock liquidity on firm value (MV), operating income to price (OIP), market value of equity to market value of the asset (MVEA), and operating income to assets (OIA) ratios in Bangladesh. This paper also investigates whether firm size, leverage, or financial crisis have any moderating role to play on the liquidity-firm value relationship. Method: The study used panel data on 159 nonfinancial firms listed in the Dhaka Stock Exchange for the period of 2006 to 2019. Ordinary Least Squares, Fixed Effect, and Two-Stage least Squares estimation methods are used to determine the desired relationship. Results: The results show that stock liquidity has a positive and significant impact on firm value and the results are robust to alternative estimation techniques. The relationship is found more acute for small and less levered firms and more intense in the post-crisis (after the 2010 stock market crash) period in Bangladesh. Implications: The role of firm size, leverage, or financial crisis on the liquidity-firm value relationship will help corporate managers to adopt policies and strategies for improving the stock liquidity, changing investors' perceptions, and overall, increasing the depth and stability of the capital market in Bangladesh or elsewhere. Limitations: Due to the unavailability of data, for the robustness check, we couldn't use any alternative proxy of stock liquidity such as bid-ask spreads.

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“…Previous research has proven that ROE, CR and DAR have a positive and significant effect on stock returns (Safitri et al, (2015). Furthermore, Gill and Mathur (2011), prove that CEO duality and company liquidity affect the performance of service companies in Canada., Farooq and Bouaich (2012) revealed that there is a significant positive relationship between liquidity and company performance in countries that are members of the Mena region.…”

Section: Hypothesismentioning

confidence: 99%

Determinant Factors of the Public Company’s Value which Listed in Indonesia Stock Exchange

Saleh¹

2021

jeb

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The study was conducted to evaluate and analyze the factors that influence the value of the company, using 3 (three) alternative regression models, namely the stock market value; share price to book value; and the rate of return as a proxy for company value. Using the stratified random sampling technique, 22 companies were listed on the Indonesia Stock Exchange over a 10-year period from 2009 to 2018. The appropriate panel data estimation method for analyzing the regression model in this study used the fixed effect model (FEM). Regression results show that the variable of debt to total asset (DAR), return of asset (ROA) and gross profit margin (GPM) significantly influenced the value of the company measured by price to book value (PBV) as the dependent variable. For further research has to pay attention to differences in industry characteristics and also consider to use of other variables, such as age the company and the level of risk of the company that measures with the market model, so that it is possible to get better estimation results.

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Liquidity and firm performance: evidence from the MENA region

Cited by 8 publications

References 28 publications

Pengaruh Struktur Modal, Ukuran Perusahaan, Likuiditas Terhadap Kinerja Keuangan Yang Dimoderasi Inflasi

Pengaruh Struktur Modal, Ukuran Perusahaan, Likuiditas Terhadap Kinerja Keuangan Yang Dimoderasi Inflasi

Investigating the Relationship between Stock Liquidity and Firm Value

Determinant Factors of the Public Company’s Value which Listed in Indonesia Stock Exchange

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