OSREL stie-mce
Online Search and Retrieval Library
Faculty Research
PENGUJIAN VALUE RELEVANCE ANTARA LABA BERSIH DAN ARUS KAS DIHUBUNGKAN DENGAN SIKLUS HIDUP PERUSAHAAN
| Detail | |
|---|---|
| Author | RR. WIDANARNI PUDJIASTUTI |
| ID | 202.710.246 |
| Published Date | 19-01-2012 |
Abstract
When creditors and investors want to lend and invest some money to a company, they must assess the company’s earnings and other components in order to find what information that they need to assess the company’s performance more accurately. There are two information which presents company’s performance, namely: net income and cash flow. Black (1998) explained that, because of the differences in financial characteristic in each stage of the life cycle, the value-relevance of accounting measurement will be different in each stage. The first hypothesis of this research was: cash flows is more value-relevant than net income in start-up, growth, and decline stage. But net income is more value-relevant than cash flow in mature stage. And the second hypothesis was: cash flow from operating activities has dominant influence to the market value of equity, in start up stage. In growth stage, cash flow from financing activities has dominant influence to the market value of equity. In mature stage, net income has dominant influence to the market value of equity. In decline stage, cash flow from operating has dominant influence to the market value of equity. This research could not prove the first hypothesis, but the second hypothesis especially for growth stage, was proven. This research could not test start- up and decline stage, because of the limitation of the data sample.