Profitability and firm value: the impact of non-cash value flow recorded in the financial statements Online publication date: Fri, 24-Jan-2020
by Bambang Sutopo; Santoso Tri Hananto
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 12, No. 5, 2019
Abstract: This study examines whether non-cash value flow (NCVF) recorded in financial statements has an impact on the relationship between the profitability and the firm value. Using a sample covering 1,904 firm-year observations listed on the Indonesia Stock Exchange (IDX) for the 2013–2016 periods, the results of this study indicate that the impact of NCVF on the association between profitability and firm value for the high positive NCVF sub-sample is not significantly different from that for the low NCVF sub-sample. In addition, the impact of NCVF on the relationship between profitability and firm value for the high absolute negative NCVF sub-sample was significantly lower compared to that for low NCVF sub-sample. These results are not fully following the nature of NCVF which affects earnings and assets that can be normal (reflecting relatively higher quality) or either above normal or below normal (reflecting relatively lower quality) and which subsequently affect profitability (ROA) and firm value (Tobin's Q).
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook