A SYSTEMATIC LITERATURE REVIEW OF RELATIVE VALUE
DOI:
https://doi.org/10.23969/jrak.v17i2.18263Keywords:
relative value, systematic literature review, relative value measurement, price to book value, price earning ratioAbstract
Previous studies on firm value have rarely focused on relative value, making it an interesting research area. This study aims to examine the development of research focusing on relative value measured using price to book value and price earnings ratio by conducting a systematic literature review. The data is analyzed using a qualitative approach based on an empirical review of several reputable journals involving the examination of journals published between 2014 and 2023. The results of this study offer a comprehensive review of relative value developments over the past decade. The research addresses gaps in the existing literature and acts as a valuable reference for future investigations on relative value. This research has broad implications for informing decision makers, practitioners, and policymakers, emphasizing the need for a holistic approach in understanding the various practical aspects of relative value.
Downloads
References
Abdul, R., Rachmat, H., Ligar Hardika, A., Gumilar, I., Haizam, M., & Saudi, M. 2019. Capital Structure, Profitability and Firm Value: An Empirical Analysis. In International Journal of Innovation, Creativity and Change. www.ijicc.net (Vol. 6, Issue 6). www.ijicc.net
Adiputra, I. G., Suprasta, N., & Andreas, K. 2020. The Influence of Financial Decision and Corporate Social Responsibility on Value. Urban Development and Lifestile, 207–216. https://lintar.untar.ac.id/repository/penelitian/buktipenelitian_10192042_6A010322144353.pdf
Ahmad, S. M., Bakar, R., & Islam, M. D. A. 2021. Capital structure choice, industry classification and firm value: Evidence from emerging market. AIP Conference Proceedings, 2339. https://doi.org/10.1063/5.0045123
Alghifari, E. S., Solikin, I., Nugraha, N., Waspada, I., Sari, M., & Puspitawati, L. 2022. Capital Structure, Profitability, Hedging Policy, Firm Size, And Firm Value: Mediation And Moderation Analysis. Journal of Eastern European and Central Asian Research, 9(5), 789–801. https://doi.org/10.15549/jeecar.v9i5.1063
Angga, G., & Dermawan, E. S. 2023. Determinants of Price Earnings Ratio: A Study in Manufacturing Companies. International Journal of Application on Economics and Business (IJAEB), 1(1), 2987–1972. https://doi.org/10.24912/ijaeb.v1i1.694-704
Aras, G., & Kazak, E. H. 2022. Enhancing Firm Value through the Lens of ESG Materiality: Evidence from the Banking Sector in OECD Countries. Sustainability (Switzerland), 14(22). https://doi.org/10.3390/su142215302
Aribawa, A., Sutrisno, B., & Swasito, A. P. 2019. Determinant of Price Earning Ratio in the Preperty and Real Estate Company: Case Study Listed in Indonesian Stock Exchange 2011-2018. Journal of Accounting, Finance and Auditing Studies (JAFAS), 6(1), 119–130. https://doi.org/10.32602/jafas.2020.007
Arviana, N., & Wibisono, M. 2023. The Effect of Fundamental Factors on Triple Bottom Line And Firm Value. Jurnal Riset Akuntansi Kontemporer (JRAK), 15(100), 12–18. https://journal.unpas.ac.id/index.php/jrak/index
Badruzaman, J., Fadilah, A. R., & Abdurrahman, F. 2022. Determining the Effect of Return on Equity (ROE) on Price Earnings Ratio (PER) and Price to Book Value (PBV) in LQ45 Companies, Indonesia. WSEAS Transactions on Business and Economics, 19, 1564–1575. https://doi.org/10.37394/23207.2022.19.141
Battisti, E., Bollani, L., Miglietta, N., & Salvi, A. 2020. The impact of leverage on the cost of capital and market value: Evidence from Sharīʿah-compliant firms. Management Research Review, 43(9), 1081–1096. https://doi.org/10.1108/MRR-01-2019-0007
Bhaskaran, R. K., Sujit, K. S., & Waheed, K. A. 2023. Linkage Between Brand Value and Firm Performance: An Empirical Examination Using Fuzzy Set Qualitative Comparative Analysis. SAGE Open, 13(3). https://doi.org/10.1177/21582440231192135
Bhattacharya, D. and L. W.-H. 2020. Wealth Effects of Relative Firm Value in M&A Deals: Reallocation of Physical vs. Intangible Assets. Review of Quantitative Finance and Accounting, 1–58. https://ssrn.com/abstract=3474910
Bianconi, M., & Tan, C. M. 2019. Evaluating the instantaneous and medium-run impact of mergers and acquisitions on firm values. International Review of Economics and Finance, 59, 71–87. https://doi.org/10.1016/j.iref.2018.08.005
Buchory, H. A. 2020. Banking Intermediation, Asset Banking Intermediation, Asset Quality, Price Earning Ratio and Stock Prices and Their Impact on Corporate Value-Study at the Regional Development Bank of West Java and Banten Provinces in Indonesia. International Journal of Innovation, Creativity and Change, 11(12), 513–527. www.ijicc.net
Bukit, R. B., & Nasution, F. N. 2016. Voluntary Disclosure, Monitoring Mechanism And Firm Value. IJABER, 14(11), 7765–7774. https://serialsjournals.com/abstract/72747_24.pdf
Chabachib, M., Fitriana, T. U., Hersugondo, H., Pamungkas, I. D., & Udin, U. 2019. Firm value improvement strategy, corporate social responsibility, and institutional ownership. International Journal of Financial Research, 10(4), 152–163. https://doi.org/10.5430/ijfr.v10n4p152
Constand, R. L., Freitas, L. P., & Sullivan, M. J. 2014. Factors Affecting Price Earnings Ratios and Market Values of Japanese Firms. In Source: Financial Management (Vol. 20, Issue 4). Winter. http://www.jstor.org/stable/3665713
Emudainohwo, O. B. 2017. Determinants Of Price Earnings Ratio: Nigerian Experience (Quantile Regression). International Journal of Economics, Business and Management Research, 1(05), 46–76. www.ijebmr.com
Eom, K., & Nam, G. 2017. Effect of entry into socially responsible investment index on cost of equity and firm value. Sustainability (Switzerland), 9(5). https://doi.org/10.3390/su9050717
Fadjar, A., Nugraha, A. P., & Sarifudin, D. 2021. The Effect Of Dividend Policy (DPR) And Debt To Equity Ratio on Company Value (PBV) in the Consumer Non-Cyclicals Sector Companies that Registered In IDX On Period of 2017-2019. Turkish Journal of Computer and Mathematics Education, 12(11), 1442–1453.
Fosu, S., Danso, A., Ahmad, W., & Coffie, W. 2016. Information asymmetry, leverage and firm value: Do crisis and growth matter? International Review of Financial Analysis, 46, 140–150. https://doi.org/10.1016/j.irfa.2016.05.002
Gani, S., Ginting, R. R., & Simorangkir, E. N. 2022. Does Dividend Policy Mediate the Relationship Between Financial Performance and Company Value? Oblik i Finansi, 4(98), 89–100. https://doi.org/10.33146/2307-9878-2022-4(98)-89-100
Gupta, P. K., & Garg, A. 2022. Impact Of CSR Expenditure Compliance On Firm Value Using P/B-ROE Valuation Model And Instrumental Approach. Studies in Business and Economics, 17(2), 108–123. https://doi.org/10.2478/sbe-2022-0028
Hammar, S. 2014. Value and small firm premiums in the South African market. S.Afr.J.Bua.Manage, 45(4), 71–91.
Harun, M. S., Hussainey, K., Mohd Kharuddin, K. A., & Farooque, O. Al. 2020. CSR Disclosure, Corporate Governance and Firm Value: a study on GCC Islamic Banks. International Journal of Accounting and Information Management, 28(4), 607–638. https://doi.org/10.1108/IJAIM-08-2019-0103
Haryono, U., & Paminto, A. 2015. Corporate Governance and Firm Value: The Mediating Effect of Financial Performance and Firm Risk. In European Journal of Business and Management www.iiste.org ISSN (Vol. 7, Issue 35). Online. www.iiste.org
Heryana, T., Wahyudi, S., & Mawardi, W. 2020. The mediating effect of intellectual capital disclosure between firm characteristics and firm value: Empirical evidence from Indonesian company with non-recursive model analysis. International Journal of Financial Research, 11(2). https://doi.org/10.5430/ijfr.v11n2p14
Hidayat, R., Wahyudi, S., Muharam, H., & Zainudin, F. 2020. Institutional ownership, productivity sustainable investment based on financial constrains and firm value: Implications of agency theory, signaling theory, and asymmetry information on sharia companies in Indonesia. International Journal of Financial Research, 11(1), 71–81. https://doi.org/10.5430/ijfr.v11n1p71
Indrarini, S. 2019. Nilai Perusahaan Melalui Kualitas Laba (Good Corporate & Kebijakan Perusahaan). Scopindo Media Pustaka.
Indupurnahayu, Walujadi, D., Lysandra, S., Hurriyaturrohman, & Endri, E. 2023. Determinant Of Firm Value: Evidence Of Oil Palm Plantation Companies. Corporate and Business Strategy Review, 4(2), 124–131. https://doi.org/10.22495/cbsrv4i2art11
Jajang, B. 2022. Return on Equity and Price Earnings Ratio Influence on Price to Book Value. Economia Chilena, 25(1), 1–7.
Jeroh, E. 2020. Corporate Financial Attributes And The Value Of Listed Financial Service Firms: The Nigerian Evidence. Academy of Accounting and Financial Studies Journal, 24(2), 1–13.
Kurniawansyah, D., & Kurnianto, S. 2020. The Influence of Corporate Social Responsibility, Corporate Governance and Firm Size, on the Value of Manufacturing Companies in Indonesia: Profitability as Mediation. In International Journal of Innovation, Creativity and Change. www.ijicc.net (Vol. 10). www.ijicc.net
Larasati, C., Rivai, A., & Suharto. 2020. Effect of Debt to Equity Ratio and Return on Assets on Earnings per Share with Firm Value as a Moderating Variable in Various Industrial Sub-Sector Manufacturing Companies Indonesia. Asian Business Research Journal, 5, 39–47. https://doi.org/10.20448/journal.518.2020.5.39.47
Massaro, M., Dumay, J., & Guthrie, J. 2016. On the shoulders of giants: undertaking a structured literature review in accounting. Accounting, Auditing and Accountability Journal, 29(5), 767–801. https://doi.org/10.1108/AAAJ-01-2015-1939
Maulina, F., Santoso, S. B., Wahyuni, S., & Winarni, D. 2023. The Effect of Earnings Per Share (EPS) and Company Size on Company Value with Return on Assets as Moderating Variables (Case Study of Companies Registered on JII-70 during the Covid-19 Period in 2020-2021). Jurnal Ekonomi Dan Bisnis Digital, 2(1), 175–190. https://doi.org/10.55927/ministal.v2i1.2376
Neldi, M., Hady, H., Elfiswandi, & Lusiana. 2023. The Determinants Of Price Earning Ratio: Evidence From Indonesia. Journal of Law and Sustainable Development, 11(4). https://doi.org/10.55908/SDGS.V11I4.1003
Purwanto, P., & Agustin, J. 2017a. Financial Performance towards Value of Firms in Basic and Chemicals Industry. In European Research Studies Journal: Vol. XX.
Purwanto, P., & Agustin, J. 2017b. Financial Performance towards Value of Firms in Basic and Chemicals Industry. In European Research Studies Journal: Vol. XX.
Putri, N. K., Amanah, D. M. N., Aini, N., & Soelistyoningrum, J. N. 2023. Determinants of Stock Price Performance in the Indonesian Basic Industry. Journal of Enterprise and Development (JED), 5(3), 2023. https://doi.org/https://doi.org/10.20414/jed.v5i3.8017
Sasanti, E. E., Suartana, I. W., Wirama, D. G., & Wirajaya, I. G. A. 2024. The Antecedents of Value Relevance: A Systematic Literature Review. Jurnal Riset Akuntansi Kontemporer (JRAK), 16(2), 299–316. https://doi.org/10.23969/jrak.v16i2.16979
Schofield, N. C., & Bowler, T. 2011. Trading the Fixed Income, Inflation and Credit Markets: A Relative Value Guide. A John Wiley & Sons, Ltd. www.wiley.com/finance
Suhendi, C., Ifada, L. M., & Winarsih. 2022. Conceptual Paper Tax Avoidance and Firm Value in Manufacturing Companies: A Case Study for Companies in Indonesia. Lecture Notes in Networks and Systems, 497 LNNS, 280–290. https://doi.org/10.1007/978-3-031-08812-4_27
Sutrisno, E. 2020. Manajemen Sumber Daya Manusia. Kencana Prenada Media Group.
Tarjo, T., Anggono, A., Yuliana, R., Prasetyono, P., Syarif, M., Alkirom Wildan, M., & Syam Kusufi, M. 2022. Corporate social responsibility, financial fraud, and firm’s value in Indonesia and Malaysia. Heliyon, 8(12). https://doi.org/10.1016/j.heliyon.2022.e11907
Titisari, K. H., Moeljadi, Ratnawati, K., & Indrawati, N. K. 2019. The roles of cost of capital, corporate governance, and corporate social responsibility in improving firm value: Evidence from Indonesia. Investment Management and Financial Innovations, 16(4), 28–36. https://doi.org/10.21511/imfi.16(4).2019.03
Uzliawati, L., Yuliana, A., Januarsi, Y., & Santoso, M. I. 2018. Optimisation of Capital Structure and Firm Value. In European Research Studies Journal: Vol. XXI (Issue 2).
Wiyono, G., & Safitri, N. I. 2021. Factors Affecting Price Earning Ratio As One Of The Decision Criteria For Manufacturing Company Shares Investment In Indonesia Stock Exchange (2013-2018 Period). International Journal of Economics, Business and Accounting Research (IJEBAR), 5(1), 302–311. https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Yuliani, R., Saudi, M. H., & Sinaga, H. 2021. Of Intrinsic Value Relative Valuation Techniques:Specific Geographical Review On Listed Companies (Overvalued, Undervalued Or Fairvalued) In Indonesia Stock Exchange-30. RIGEO Review of International Geographical Education, 11(1), 2021. https://doi.org/10.48047/rigeo.11.1.65
Yulianti, V., Purba, J., & Ningrum, W. A. 2023. Tax Planning and Avoidance on Firm Value. East Asian Journal of Multidisciplinary Research, 2(9), 3753–3764. https://doi.org/10.55927/eajmr.v2i9.5834
Downloads
Published
Issue
Section
License
Copyright (c) 2025 I Ketut Sunarwijaya, I Ketut Yadnyana, Dewa Gede Wirama, I Gde Ary Wirajaya
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
