Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange

Lenny Leorina Evinita

doi:doi:10.11648/j.ijafrm.20170203.13

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Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange

Lenny Leorina Evinita

Published in International Journal of Accounting, Finance and Risk Management (Volume 2, Issue 3)

Received: 26 April 2017 Accepted: 22 June 2017 Published: 3 August 2017

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Abstract

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.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 2, Issue 3)
DOI	10.11648/j.ijafrm.20170203.13
Page(s)	107-112
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Revaluation of Property, Plant and Equipment, Rate of Return Stock, Stock Price

References

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APA Style

Lenny Leorina Evinita. (2017). 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, 2(3), 107-112. https://doi.org/10.11648/j.ijafrm.20170203.13

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ACS Style

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. Int. J. Account. Finance Risk Manag. 2017, 2(3), 107-112. doi: 10.11648/j.ijafrm.20170203.13

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AMA Style

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. Int J Account Finance Risk Manag. 2017;2(3):107-112. doi: 10.11648/j.ijafrm.20170203.13

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@article{10.11648/j.ijafrm.20170203.13,
  author = {Lenny Leorina Evinita},
  title = {Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {2},
  number = {3},
  pages = {107-112},
  doi = {10.11648/j.ijafrm.20170203.13},
  url = {https://doi.org/10.11648/j.ijafrm.20170203.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20170203.13},
  abstract = {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.},
 year = {2017}
}

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TY  - JOUR
T1  - Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange
AU  - Lenny Leorina Evinita
Y1  - 2017/08/03
PY  - 2017
N1  - https://doi.org/10.11648/j.ijafrm.20170203.13
DO  - 10.11648/j.ijafrm.20170203.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 107
EP  - 112
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20170203.13
AB  - 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.
VL  - 2
IS  - 3
ER  -

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Author Information

Lenny Leorina Evinita

Department of Management, Manado State of University, North Sulawesi, Indonesia

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Plain Text BibTeX RIS

APA Style

Lenny Leorina Evinita. (2017). 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, 2(3), 107-112. https://doi.org/10.11648/j.ijafrm.20170203.13

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ACS Style

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. Int. J. Account. Finance Risk Manag. 2017, 2(3), 107-112. doi: 10.11648/j.ijafrm.20170203.13

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AMA Style

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. Int J Account Finance Risk Manag. 2017;2(3):107-112. doi: 10.11648/j.ijafrm.20170203.13

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@article{10.11648/j.ijafrm.20170203.13,
  author = {Lenny Leorina Evinita},
  title = {Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {2},
  number = {3},
  pages = {107-112},
  doi = {10.11648/j.ijafrm.20170203.13},
  url = {https://doi.org/10.11648/j.ijafrm.20170203.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20170203.13},
  abstract = {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.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Analysis of Relationship Revaluation of Property, Plant and Equipment Company on Stock Prices and the Rate of Return on Stock on Indonesian Stock Exchange
AU  - Lenny Leorina Evinita
Y1  - 2017/08/03
PY  - 2017
N1  - https://doi.org/10.11648/j.ijafrm.20170203.13
DO  - 10.11648/j.ijafrm.20170203.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 107
EP  - 112
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20170203.13
AB  - 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.
VL  - 2
IS  - 3
ER  -

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