Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange
International Journal of Accounting, Finance and Risk Management
Volume 2, Issue 3, August 2017, Pages: 107-112
Received: Apr. 26, 2017;
Accepted: Jun. 22, 2017;
Published: Aug. 3, 2017
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Lenny Leorina Evinita, Department of Management, Manado State of University, North Sulawesi, Indonesia
This study determined the relationship revaluation of property, plant and equipment on stock prices and the rate of return on stock in the manufacturing company. The population included the manufacturing companies included in the index LQ45 in Indonesia Stock Exchange in January 2011 to December 2013. The descriptive method utilized and the data were analyzed using multiple regression. The data were gathered from a yearly financial report in Indonesia stock exchange, data collection, data analysis, statistical analysis. The result of this research has shown that 1) There is the relationship between the financial asset classes of property, plant and equipment at fair value with reliability, 2) Reporting of fixed asset property, plant and equipment at fair value biased and unreliable especially for SE (The difference between the change in value of assets) and PPNINC (the increase of the value of property, plant, equipment company in period t), and 3) The fair value has ability to explain the explanatory power which is quite significant to the stock price, exceeds that can be presented with the historical cost. Based on the result, it can be concluded that asset reporting at fair value did not show a reliable quality. This was due to a difference in reporting an overvalued increase in the value of company asset in certain periods and increase in value property, plant and equipment in certain periods. And the changes in the value of property, plant, and equipment were reported together with the assessment made by investors and had a value of reliability.
Lenny Leorina Evinita,
Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange, International Journal of Accounting, Finance and Risk Management.
Vol. 2, No. 3,
2017, pp. 107-112.
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