FratFiles

• Save Paper

SNA VIII Solo, 15 – 16 September 2005
1
THE EFFECT OF TRANSITORY EARNINGS
ON THE USE OF E/P RATIOS IN CORPORATE VALUATION:
EMPIRICAL EVIDENCE FROM INDONESIA
ERNI EKAWATI
Fakultas Ekonomi Universitas Kristen Duta Wacana
ABSTRACT
The purposes of this study are, firstly, to confirm the findings of the previous
study, whether earnings contain transitory components. Secondly, to investigate how E/P
ratios are affected when firms experience transitory earning changes. Thirdly, to examine
whether the differences in E/P ratios across firms due to differences in the magnitude of
transitory earnings will quickly disappear in subsequent years.
Using financial data of companies listed in Jakarta Stock Exchange (JSE) from
the periods of 1993 to 2003, the study finds that earning changes exhibit a transitory
component. Under the condition of transitory earnings, firm's E/P ratio is positively
affected by the changes in earnings. Industry-adjusted earning changes variable is shown......

View the rest of this paper...

Approximate Word Count: 4553
Approximate Pages: 19 (250 words per double-spaced page)

Similar Essays

1. Xerox - Book In Time
   

   ... Appendix ? I Xerox Book-In-Time Market Share Calculations Category Market Share
   No.Of books Conversion Potential Market Size Trade 36 864 2% 17.28 Text Books ...

2. Xerox: Book-In-Time
   

   Xerox: Book-In-Time. SNA VIII Solo, 15 ? 16 September 2005 1 THE EFFECT OF
   TRANSITORY EARNINGS ON THE USE OF E/P RATIOS IN CORPORATE ...

3. Xerox
   

   ... Please do quantify your answer. Xerox Book-in-Time (BIT) was a low cost digital
   system of true customer satisfaction to what concerns the book printing demand. ...

4. Xerox Case Study Analysis
   

   ... Appendix A Break Even Analysis of Xerox Book In Time Product Selling into the
   Publishing/Printing Market Component Costs $895,000 Per Unit Set Up Costs $1000 ...