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Faculty Research

ANALISIS VALUE RELEVANCE DARI INFORMASI LAPORAN KEUANGAN PADA TAHAPAN SIKLUS HIDUP PERUSAHAAN

Detail
Author RR. WIDANARNI PUDJIASTUTI (Tim: Ketua)
ID 202.710.246
Published Date 20-08-2013

Abstract

-Creditors and investors require accurate information of company's performance to lend and invest money to a firm. The information is related to Net Income and Cash Flow. Black (1998) stated the difference in financial characteristic in each stage of the life cycle will lead to the difference of value relevnce of accounting measurement in each stage. The first hypothesis of this research is Cash Flow is more value-relevant than Net Income in start-up, growth, and decline stage. However, Net Income is more value-relevant than Cash Flow in mature stage. The second hypothesis is Cash Flow from operating activites 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, Cas Flosw from operating has dominant influence to the value of equity. This research is unable to prove the first hypothesis, but the second hypothesis especially for growth stage has been proven. Keyword: company life cucle, net insome, cash flow, value relevance