| dc.description.abstract | The objective of this study is identifying the factors which are influent the choice of
inventory method and its effect to price earning ratio with the focus to Ricardian
hypotheses. The study will examine regarding the choice of inventory method between
average and FIFO method. This examination used six variables: inventory variability,
inventory intensity, capital intensity, cost of good sold variability, firm size and
accounting income variability.
The objects of this study are all manufacturing companies listed in BEJ during 2002 -
2004. The t-test, logistic regression, and analysis of covariance used to test of hypotheses.
The result of the logistic regression shows that production investment opportunity is
influent to the inventory method choice. The t-test and analysis of covariance shows that
firms price earning ratio between FIFO and average method are not significant although
using control variable. | en_US |
