Earnings Per Share

The following ratio analysis will look at the financial performance of American Eagle Outfitters (AEO), Inc. and Urban Outfitters (UO), Inc.  Both companies compete within the retail family clothing stores industry and have domestic and foreign operations. 
    AEO opened its first store in the United States (US) in 1977 and as of December 31, 2008 is operating in 1,098 stores and also operates e-commerce sites under AEO Direct.  AEO has 37,500 employees who work under the name American Eagle Outfitters, and wholly-owned subsidiaries, American Eagle, and AE brand names (aerie, Dormware®, AE® Martin + OSA® and 77kids™), (Libby, Libby, & Short,  2011, pp. B-2 – B-3)
UO was founded in 1970 as a predecessor partnership and later “incorporated in the Commonwealth of Pennsylvania in 1976….The company’s principle business is the operation of a general consumer product retail and wholesale business selling to customers through various channels including retail stores, three catalogs, and four web sites” (Libby et al, 2011, p. C-7). As of January 31, 2009, the company operated out of 294 stores and “in addition, the company’s wholesale segment sold and distributed apparel to approximately 1,800 better specialty retailers worldwide” (Libby et al, 2011, p. C-7).

Rocky Waplau / 22150455 / 2019 / The Effect of Capital Structure, Firm Size, Activity Ratio on Profitability in Construction Service Sector Companies Listed in Indonesia Stock Exchange from 2014 to 2018 / Advisors: Mr Bonnie Mindosa, S.E., MBA.
The phenomenon that occurs in this study is based on real phenomena the form of infrastructure developed by construction development in Indonesia, in the past 5 years the construction sector experienced a growth in net income every year, this occurred as a result of the largest state budget funded by the interests Ministry of Public works and people's housing, so the demand for construction work has a considerable increase in importance, with the existence of a high level of construction profitability that will attract the attention of investors, so this research is conducted in order to find out what influences the level of profitability of construction sector companies, with the financial performance used in this research includes: Debt to Equity Ratio, Log. N Total Sales, & Average Collection Period.
This research has a grand theory which forms the basis of this research in the form of, Modigliani & Miller theory, Pecking Order Theory and Capital Structure Theory as the targets in the development of the capital structure hypothesis, as well as references to previous research to formulate the research hypothesis.
The Data is obtained by purposive sampling technique or called judgement sampling. For the method of data analysis using descriptive statistics, classic assumption tests, regression screening tests and significant tests, the regression method in this study is panel data regression to combine the cross-section and time series.
Based on the results of data analysis using a partial test (t-test), the variable debt to equity ratio which is a measure of capital structure does not affect the company's profitability measured using earnings per share, Firm Size has a significant effect on the positive direction of earnings per share, and average period collections have a significant negative effect on earnings per share. And for the simultaneous test (F-test) all independent variables have an influence on the dependent variable. As for the ability of the independent variable in explaining the dependent variable is around: 20.2%.
Based on the testing, the conclusions in this study are 2 of the 3 hypotheses that have been proven to have positive and negative significant influences on the dependent variable, while the 1st hypothesis is not proven to have a significant effect on the dependent variable, thus for subsequent research it is recommended to use other financial performance, in order to be aware of their impact on the profitability of the company.
Keywords: Capital Structure, Debt to Equity Ratio, Firm Size, Activity Ratio, Earning per Share. Classic Assumption Test & Panel Data Regression.

The present study analyses the combined, individual,
and incremental value relevance of accounting information
produced by firms listed on the S&P BSE-500 for FY-2006 to
FY-2010, and changes therein over a period of time. Results
provide sufficient evidence that accounting information is value
relevant for BSE-listed firms. The combined value relevance of
accounting information represented by earnings per share and
book value per share has declined  while there have been
insignificant changes in the incremental value relevance of
accounting information.

Rampant corporate failures have placed corporate governance in the limelight again however not all governance practices help firms in enhancing value. This empirical research examines impact of corporate governance practices on shareholders' value represented by earning per share of 243 listed firms on Pakistani Bourse. It ensued in the conclusion that overall corporate governance tends to have significant impact on earnings per share and reveals dichotomy of corporate governance practices based on direction of their association with share holders' value and terms them as value boosters and value dampers. It has also been found that pro-entrenchment practices tend to lower earnings per share in the listed firms either due to complacency or vested interests while rest of the practices help in enhancing value earned on each share thus endorsing the theoretical perspectives emanating out of agency and shareholder activism theories. This study emphasizes the significance of Board Attendance, Board Independence, Non-duality of CEO-Chairman Role for listed firms' value. It also shows that entrenchment acts like larger boards, directors' ownership, large block holders and disclosure of such ownership can adversely impact the firms' value and thus play a significant role in scaring away the potential investors who primarily look at earnings per share for buying of stocks of a particular company. It entails policy implications that implementation of counter-entrenchment regulations needs strengthening as the existing seem to have cosmetic effect. Identification and implementation of good governance practices can be best ensured when propagated in the perspective of value enhancement.

The study examined the relationship between tax avoidance and financial performance of selected quoted firms in Nigeria. Secondary method of data collection was adopted. Simple random sampling technique was used in selecting five out of 17 quoted industries in Nigeria and two firms each from the sampled industries Variables tested for tax avoidance are tax cost savings (COS); profit before tax (PBT) and debt equity ratio (DER). Earnings per share (EPS) were proxy for profitability. Data were subjected to pretest analyses including correlation test, panel unit root test and panel co-integration test, followed by panel estimation including pooled OLS, fixed effect, random effect estimation, alongside post estimation tests such as restricted f-test, Hausman test, heteroscedasticity test, cross-sectional dependence test, and autocorrelation test. Results showed that profit before tax and debt equity ratio exert a significant positive impact on earnings per share while tax cost savings exert an insignificant negative impact. The study concluded that earning per share is substantial with all the tax avoidance variables showing statistically significant, with the impact of tax cost saving specifically contributing to increase in earnings per share. This study therefore recommends that management should device a model that can help evaluate the appropriate leverage ratio fit for the implementation of tax avoidance strategies to ensure that strategies are adopted without posing threat to the going concern of the firm.

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Previous research in mature capital markets, such as US and UK, proved that stock market returns and earnings per share (EPS) are correlated. However, research in emerging capital markets to this correlation is not as extensive. The purpose of this paper is to investigate whether the level of EPS and EPS changes, the level of return on investment (ROI) and

DYNAMIC TRADE-OFFS IN FINANCIAL PERFORMANCES OF ROMANIAN COMPANIES. Alexandra Horobet. alexandra.horobet@rei.ase.ro. Radu Lupu. radu.a.lupu@gmail.com. Sorin Dumitrescu. sorin.dumitrescu@rei.ase.ro. Dan Gabriel Dumitrescu. dandumiase@gmail.com ...

ABSTRACT In this study, the relative accuracy of four well known methods for forecasting are compared The methods are applied to the time series of earnings per share for a random sample of United States corporations over a lengthy period of time. All the time series exhibit both period-to-period movements and seasonal fluctuation. The four models are, (1) Holt-Winters multiplicative exponential smoothing model, (2) univariate Box-Jenkins model, (3) linear autoregression of data seasonally adjusted by the Census II–XII method, and (4) linear autoregression of the data seasonally adjusted by the X11-ARIMA method. The study of financial data of this type is important because (1) these data exhibit time series properties of trend, seasonality, and cycle, (2) earnings per share forecasts are important for purposes of financial planning and investment; and (3) previous studies of this nature were not as exhaustive in terms of the statistical analysis of the results

During the past decade, Egypt made significant efforts to align corporate financial reporting requirements with the International Accounting Standards (IAS) and to close the compliance gap in both accounting and auditing practices. Consequently, important improvements have been achieved in accounting and disclosure requirements for the publicly traded companies and financial institutions and in Egyptian Accounting Standards as benchmarked against IAS. Moreover, a new Accounting Practice Law has been drafted and agreed upon by all stakeholders, though not yet been ratified. Further improvements could be achieved by issuing a modern legislative framework that includes an appropriate regulatory framework for practicing auditors, addressing weaknesses in professional education and training arrangements, introducing qualification examinations for auditor licensing, and developing an enforcement mechanism to ensure compliance with applicable accounting and auditing standards.

The present paper is aimed at analyzing the impact of dividend policy of shareholders' wealth in Organic and Inorganic Chemical Companies in India during 1996 – 1997 to 2005-2006. To measure the impact of dividend policy on shareholders' wealth multiple regression method and stepwise regression models are used by taking DPS it (Dividend per Share), RE it (Retained Earnings per Share), Pe t-1 (Lagged Price Earning Ratio) and MPSi t-1 (Lagged Market Price) (MVi t-1) as independent variable, and MPS it (Market Price Per Share) as dependent variables. To determine the proportion of explained variation in the dependent variable, the coefficient of determination (R 2) has been tested with the help of F value. The study proves that the wealth of the shareholders is greatly influenced mainly by five variables viz., Growth in sales, Improvement of Profit Margin, Capital Investment Decisions (both working capital and fixed capital), Capital Structure Decisions, Cost of Capital (Divide...

Firms adopt mergers and acquisitions as a strategy for growth and to enhance profitability. This study examines the effects of mergers and acquisitions on profitability and Earnings per Share of selected deposit money banks in Nigeria. The study utilized secondary data obtained from the Annual financial reports of the banks under study. Analysis of pre- and post-merger data were carried out. Two hypotheses were developed and tested. Independent Sample t- test and Simple regression analysis were used to the hypotheses. Results revealed that there was a significant difference in profits between the periods as profits improvement tremendously immediately after the mergers. It was also revealed that there was significant effect of global financial crisis on EPS. The study recommends that Bail-out funds should be provided the banks in need as done to union bank and others. It also recommends that proper legal framework should be instituted to mitigate the effect of post global financial ...

This study was conducted to investigate the effects of financial risks on the relationship between earnings per share and stock returns. The statistical population of the study consisted of the companies accepted by Tehran Stock Exchange. According to the conditions for sampling, 65 companies were selected during a period of six years from 2008 to 2013 (i.e., 390 fiscal years), and four hypotheses were set forth to achieve the purposes of the study. The first hypothesis tried to assess the relationship between earnings per share and stock returns.
The second, third, and fourth hypotheses investigated the significance of the effects of three financial risks, namely liquidity, credit, and solvency risks on the relationship between earnings per share and stock returns. The hypotheses of the study were tested using linear and multiple regressions. The findings of the study indicated that there was a positive and significant relationship between earnings per share and stock returns. In addition, the results proved that the credit and solvency risks had negative and significant effects on the relationship between earnings per share and stock returns, but the effect of liquidity risk on this relationship was not significant.

The authors examine the effect of having women on the top management teams of initial public offering (IPO) firms on the organizations' short- and long-term financial performance. Looking at three different samples, the authors found that trend data indicated IPO firms were gaining in the number of women they employ in their top management teams. Using data from 534 IPO firms, results suggest one reason why the trend is growing; women appear to have a positive association with the firms' short-term performance (Tobin's Q, which is market price to book value per share), 3-year stock price growth, and growth in earnings per share. Possible reasons for the positive effect of women on performance include better innovation and problem-solving processes in more diverse top management teams and the possibility that, on average, the women on these teams are higher performers than are the men on the same teams.

... to Year -1. The industry-adjusted figures show a similar trend of declining operating performance. ... assets) are $21.38 ($14.68) million and $24.98 ($20.61) million for our sample of IPO firms and ... In addition, the median total debt to total assets (long-term debt to total assets) ratios ...