VALUE OF THE COMPANY : A Review of Literature
Keywords:
Vakue of the company, a review of literature
Abstract
Each company aims to maximize shareholder wealth through increased value of the company. The value of the company is the market value of debt and equity securities outstanding companies and the investors' perception of the level of success of the company that are often associated with stock prices (Keown, 2004). Investor confidence in the company's financial performance and prospects of the company in the future can be built through the creation of value for the company. Various theories Financial Management that discusses are Corporate Value, Market Value of the Firm Theory. Besides Value Company also has links with some of the concepts and theories of the Agency Theory, Theory of Trading Volume of stocks, Theory Diversified Portfolio, Theory Ownership structure of the company, Free cash flow, Investments, Stock liquidity, Risk and Return, Operating Performance, and Corporate Governance.
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References
[1] Amihud,Y. and Lev, B. (1981). Risk Reduction as a Managerial Motive for Conglomerate Mergers. Bell Journal
of Economics, 12:605-617.
[2] Amihud, Y., Mendelson, H., 2008. Liquidity, the Value of the Firm, and Corporate Finance. Journal of
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[8] Brigham, Eugene F., and Houston Joel F, 2001, Fundamentals of Financial Management, eight edition, the
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[9] Damodaran, A., 2006, Investment Valuation, 2nd edition.
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[12] Demsetz., Harold And Belen Villalonga, 2001, Ownership Structure And Corporate Performance, Journal Of
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[13] Easterbrook, F.H. 1984, Two Agency - cost Explanations of Dividends, American Economic Review, vol. 74,
no. 2, pp. 650-659.
[14] Fama F. Eugene, 1978, The Effect of Firm’s Investment and Financing Decision on the Welfare of its Security
Holders, American economic review, vol. 68.no.3. June, p. 272-284.
[15] Fama, E., Jensen, M., 1983, Separation of Ownership and Control. Journal of Law and Economics 26, 301–325.
Forum for Corporate Governance in Indonesia, the Role of Board of Commissioners and the Audit Committee
on the Implementation of Corporate Governance (GCG).
[16] Gaver, Jennnifer J., dan Kenneth M. Gaver (1993), “Additional Evidence on the Association between the
Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies”. Journal of
Accounting and Economics, Vol. 16: pp. 125-160.
[17] Goldreich, David., Bernd Hanke And Purnendu Nath, 2004, The Price Of Future Liquidity: Time-Varying
Liquidity In The Us. Treasury Market, Working Paper, London Business School And Cepr, Pp. 1-44.
[18] Gordon, Gary. And Matthias Kahl, 2002, The Scarcity Of Effective Monitors And Its Implication Of Corporate
Takeovers And Ownership Structure , Working Paper, July 7, Pp. 1-39.
[19] Jensen C Michael, 1986, Agency Cost Of Free Cash Flow, Corporate Finance And Takeovers ,
American Economic Review, May, Vol. 76, No. 2p. 323-329.
[20] Jensen and William H.Meckling, 1976, Theory Of Firm : Managerial Behavior, Agency Cost, And Ownership
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[21] Jensen, Michael C., dan Smith, Jr Clifford W. (1994), ”The Modern Theory of Corporate Finance”. Mc Graw –
Hill Book Company.
[22] Keown, Arthur. J., Martin., 2004,“Financial Management: Principles and Application”, Pearson Prentice Hall.
[23] Lins V Karl, 2003, Equity Ownership And Firm Value In Emerging Market, Journal Of Financial And
Quantitative Analysis, Vol.38, No.1, March, P. 159-183.
[24] Loderer, C., Roth, L., 2005. The pricing discount for limited liquidity: evidence from SWX Swiss Exhange and
the Nasdaq. Journal of Empirical Finance 12, 239-268.
[25] Mangantar, M., and Muhammad Ali, 2015, An Analysis of the Influence of Ownership Structure, Investment,
Liquidity and Risk to Firm Value: Evidence From Indonesia, American Journal of Economics And Business
Administration, Vol. 7 No.4, November, P. 166-176 DOI: 10.3844/ajebasp.2015.166.176.
[26] Morck, R., Shleifer, A., Vishny, R., 1988. Management Ownership and Market Valuation: an empirical analysis.
Journal of Financial Economics 20, 293–315.
[27] McConnell, John J., And Henri Servaes, 1990, Additional Evidence On Equity Ownership And Corporate
Value, Journal Of Financial Economics, 27, P. 595-612.
[28] Parengkuan, T., Effect of Stock Ownership Concentration Against Risk Corporate, Capital Structure, Liquidity
Shares, diversification Enterprises, Company Growth, Free Cash Flow and Value of Manufacturing Yang Go
Public In Indonesia, Journal of Innovation Management, Vol.4 No.2,
[29] Smart, Scott B., William L. Megginson and Lawrence J. Gitman, 2004, Corporate Finance, Thompson, South
Western USA.
[30] Tadesse, Solomon, 2005, Stock Market Liquidity, Corporate Governance in Small Firm, William Davidson
Institute, Working Paper Number 883.
[31] Welch, E. (2003). The Relationship between Ownership Structure and Performance In Listed Australian
Companies. Australian Journal of Management, 28(3), 287-305.
of Economics, 12:605-617.
[2] Amihud, Y., Mendelson, H., 2008. Liquidity, the Value of the Firm, and Corporate Finance. Journal of
Applied Corporate Finance 20, 32-45.
[3] Baker, M., Stein, J.C. and Wurgler, J. 2003, When does the market matter? Stock prices and The Investment
of Equity-Dependent Firms, Quarterly Journal of Economics, vol. 118, no. 3, pp. 969-1005.
[4] Bagnani S. Elizabeth., Nikolaos T. Milonas, Anthony Saunder And Nickolaos Travlos, 1994, Manager, Owners
And The Pricing Of Risky Debt: An Empirical Analysis, Journal Of Finance, vol. XLIX. No. 2. June, p. 453-
477
[5] Berle A Adolf and Gardiner C. Means, 1993, The Modern Corporation and Private Property, MC Millan , New
York. USA.
[6] Black, Bernard S., de Carvalho Antonio G, And Gorga E., 2009, “When Corporate Governance Elements
Predict Firm Value : Evidence From Brazil”, Social Science Research Network Electronic library
: http://ssrn.com/abstract=1434116
[7] Brailsford J , Timothy, Barry R. Oliver Abd Sandra. L. H. Pua, 2002, On the Relation between Ownership
Structure and Capital Structure, Journal of Accounting And Finance, Vol. 42, P. 1-26.
[8] Brigham, Eugene F., and Houston Joel F, 2001, Fundamentals of Financial Management, eight edition, the
Dryden Press, Orlando.
[9] Damodaran, A., 2006, Investment Valuation, 2nd edition.
[10] Demsetz, H. (1983). The Structure of ownership and the theory of the firm, Journal of Law and Economics, 26,
375-390.
[11] Demsetz., Harold and Kenneth Lehn, 1985, The Structure Of Corporate Ownership,Journal of Political
Economy vol. 93. no. 6. p. 1155-1177.
[12] Demsetz., Harold And Belen Villalonga, 2001, Ownership Structure And Corporate Performance, Journal Of
Corporate Finance, 7, P. 209-233.
[13] Easterbrook, F.H. 1984, Two Agency - cost Explanations of Dividends, American Economic Review, vol. 74,
no. 2, pp. 650-659.
[14] Fama F. Eugene, 1978, The Effect of Firm’s Investment and Financing Decision on the Welfare of its Security
Holders, American economic review, vol. 68.no.3. June, p. 272-284.
[15] Fama, E., Jensen, M., 1983, Separation of Ownership and Control. Journal of Law and Economics 26, 301–325.
Forum for Corporate Governance in Indonesia, the Role of Board of Commissioners and the Audit Committee
on the Implementation of Corporate Governance (GCG).
[16] Gaver, Jennnifer J., dan Kenneth M. Gaver (1993), “Additional Evidence on the Association between the
Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies”. Journal of
Accounting and Economics, Vol. 16: pp. 125-160.
[17] Goldreich, David., Bernd Hanke And Purnendu Nath, 2004, The Price Of Future Liquidity: Time-Varying
Liquidity In The Us. Treasury Market, Working Paper, London Business School And Cepr, Pp. 1-44.
[18] Gordon, Gary. And Matthias Kahl, 2002, The Scarcity Of Effective Monitors And Its Implication Of Corporate
Takeovers And Ownership Structure , Working Paper, July 7, Pp. 1-39.
[19] Jensen C Michael, 1986, Agency Cost Of Free Cash Flow, Corporate Finance And Takeovers ,
American Economic Review, May, Vol. 76, No. 2p. 323-329.
[20] Jensen and William H.Meckling, 1976, Theory Of Firm : Managerial Behavior, Agency Cost, And Ownership
Structure, Journal Of Financial Economics, 3, July, p.305-360.
[21] Jensen, Michael C., dan Smith, Jr Clifford W. (1994), ”The Modern Theory of Corporate Finance”. Mc Graw –
Hill Book Company.
[22] Keown, Arthur. J., Martin., 2004,“Financial Management: Principles and Application”, Pearson Prentice Hall.
[23] Lins V Karl, 2003, Equity Ownership And Firm Value In Emerging Market, Journal Of Financial And
Quantitative Analysis, Vol.38, No.1, March, P. 159-183.
[24] Loderer, C., Roth, L., 2005. The pricing discount for limited liquidity: evidence from SWX Swiss Exhange and
the Nasdaq. Journal of Empirical Finance 12, 239-268.
[25] Mangantar, M., and Muhammad Ali, 2015, An Analysis of the Influence of Ownership Structure, Investment,
Liquidity and Risk to Firm Value: Evidence From Indonesia, American Journal of Economics And Business
Administration, Vol. 7 No.4, November, P. 166-176 DOI: 10.3844/ajebasp.2015.166.176.
[26] Morck, R., Shleifer, A., Vishny, R., 1988. Management Ownership and Market Valuation: an empirical analysis.
Journal of Financial Economics 20, 293–315.
[27] McConnell, John J., And Henri Servaes, 1990, Additional Evidence On Equity Ownership And Corporate
Value, Journal Of Financial Economics, 27, P. 595-612.
[28] Parengkuan, T., Effect of Stock Ownership Concentration Against Risk Corporate, Capital Structure, Liquidity
Shares, diversification Enterprises, Company Growth, Free Cash Flow and Value of Manufacturing Yang Go
Public In Indonesia, Journal of Innovation Management, Vol.4 No.2,
[29] Smart, Scott B., William L. Megginson and Lawrence J. Gitman, 2004, Corporate Finance, Thompson, South
Western USA.
[30] Tadesse, Solomon, 2005, Stock Market Liquidity, Corporate Governance in Small Firm, William Davidson
Institute, Working Paper Number 883.
[31] Welch, E. (2003). The Relationship between Ownership Structure and Performance In Listed Australian
Companies. Australian Journal of Management, 28(3), 287-305.
Published
2017-01-02
How to Cite
Mangantar, M. (2017). VALUE OF THE COMPANY : A Review of Literature. Journal of Research in Business, Economics and Management, 8(1), 1249-1257. Retrieved from http://scitecresearch.com/journals/index.php/jrbem/article/view/961
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