The Impact of Hedging on Firm Value of Public Non-Bank State-Owned Enterprises

Pradana, Henny Galla; Naomi, Prima

doi:10.26905/jkdp.v22i2.1967

Cited by 2 publications

(2 citation statements)

References 11 publications

(26 reference statements)

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“…Kusuma (2021)'s study concluded that aggregate OCI has a significant positive effect on firm value by proxy Tobbin's Q, and the explanatory coefficient will be higher when comprehensive income only consists of net income and aggregate OCI which does not involve group OCI items that will not be reclassified to net income. Pradana & Naomi (2018) examine group OCI items that will be reclassified to net income and focus on one item, namely cash flow hedges in non-bank and find evidence that cash flow hedges have a significant effect on company value. H1a.…”

Section: Hypothesis Formulation Effect Of Disaggregation Of Reclassif...mentioning

confidence: 99%

Effect of Others Comprehensive Income on Company Value by Mediation of Retained Earnings: Evidence From Indonesia

Athori,

Kusuma

2023

jca

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Research so far has only tested the effect of other comprehensive income (OCI) and retained earnings on firm value separately. Not many studies have examined the effect of OCI on retained earnings and the mediating role of retained earnings in it’s effect on firm value. This test is important to do as proof of the relevance value of group OCI items that will not be reclassified to net income, where their age as unrealized income is longer than other group OCI items.Test results on the market in Indonesia show: (1) OCI of groups that will not be reclassified to net income has a significant positive effect on retained earnings, but not on firm value, and (2) retained earnings mediate the effect of OCI of groups that will not be reclassified to net income to company value. Retained earnings represent accumulated earnings for the past period including accommodating income from OCI realization which was previously presented as a group that will not be reclassified to net income, which eventually these items become part of retained earnings, including OCI items for the closest period whose amount and time of realization are not known for certain in the end will also become part of retained earnings. The originality of this research is to test the influence of: (1) OCI on retained earnings and (2) mediation of retained earnings in the effect of OCI on firm value.

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Section: Hypothesis Formulation Effect Of Disaggregation Of Reclassif...mentioning

confidence: 99%

Effect of Others Comprehensive Income on Company Value by Mediation of Retained Earnings: Evidence From Indonesia

Athori,

Kusuma

2023

jca

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“…This reclassification policy is empirically proven to increase the value of the relevance of the income statement, both in China (Zhao et al, 2018) and Indonesia (Kusuma, 2021;Kusuma et al, 2021;Kusuma, 2020). One item of other comprehensive income reported as part of comprehensive income is cash flow hedges; a study conducted by Pradana & Naomi (2018) on non-bank BUMN's proves that hedging cash flow has an effect on firm value.…”

Section: Comprehensive Income Total Assets Comprehensive Income Total...mentioning

confidence: 99%

Modification of Profitability Measures with Comprehensive Income and Reclassification of Other Comprehensive Income as a Mediation of Effects Asset Utilization on Firm Value

Kusuma

2021

J. Keuang. dan Perbank.

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This study modifies financial performance measures by developing a comprehensive income-based measure as the impact of applying fair value accounting and the concept of all-inclusive income, which has an effect on changing the income statement format, and testing its mediating role on the effect of asset utilization on firm value, data from 504 companies on the IDX period 2016 – 2020. The results show that financial performance based on comprehensive income mediates asset utilization on firm value if it only contains net income and other comprehensive income for the group to be reclassified. The net income version of ROA ROE is suitable for evaluating the performance of operating activities, while the comprehensive income version is suitable for evaluating the overall asset utilization performance from the results of revenues that have been realized and have not been realized. Novelty or originality: (1) developing comprehensive profit-based profitability and (2) mediating comprehensive profitability on the effect of asset utilization on firm value.JEL: E64, G32

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The Impact of Hedging on Firm Value of Public Non-Bank State-Owned Enterprises

Cited by 2 publications

References 11 publications

Effect of Others Comprehensive Income on Company Value by Mediation of Retained Earnings: Evidence From Indonesia

Effect of Others Comprehensive Income on Company Value by Mediation of Retained Earnings: Evidence From Indonesia

Modification of Profitability Measures with Comprehensive Income and Reclassification of Other Comprehensive Income as a Mediation of Effects Asset Utilization on Firm Value

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