Title: Firm nominal value and the role of some accounting information: an investigation of Indonesian listed firms

Authors: Yohanes Indrayono

Addresses: Universitas Pakuan, Jalan Pakuan, Bogor, West Java, Indonesia

Abstract: This study introduces the firm's nominal value rather than using market value only in the stock market, which should be considered by investors and firm management when they make decisions. This research work examines the accounting information's effect, which comprises the earnings, sales, book value per share, and operating profit of firm's nominal value of the stock. This study uses regression analysis with 184 non-financial Indonesian listed sample firms from thirteen industries for the period 2007-2016. The result is that the firm's accounting information, namely the earnings, sales, book value per share and operating profit has a significant influence on the firm's nominal worth. In order to make a better decision in stock markets, it is suggested that investors and firm management should use the firm's nominal value and certain accounting parameter, which include the earnings worth per share, book value, sales and operating profit to predict the stock market price.

Keywords: firm nominal value; earnings per share; book value; sales; operating profit.

DOI: 10.1504/IJBEM.2022.121889

International Journal of Business and Emerging Markets, 2022 Vol.14 No.2, pp.142 - 155

Received: 24 Sep 2019
Accepted: 03 Jan 2021
Published online: 07 Apr 2022 *

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