Search results for "Cash flow"
showing 10 items of 61 documents
Tropical Fruits as an Opportunity for Sustainable Development in Rural Areas: The Case of Mango in Small-Sized Sicilian Farms
2018
Over the last decades, in many rural areas in Southern Europe, farmers have abandoned agricultural activity, especially on small-sized farms, leading to an exodus from rural areas towards urbanized ones. In this context, in the early 1980s, some Sicilian farmers introduced mango on their small-sized farms, as certain areas of Sicily are well suited to tropical and subtropical crops, but also to meet increasing consumer interest for these fruits, as they are perceived as functional foods. This paper aimed to evaluate the economic sustainability of mango and to determine whether its introduction could be considered as an alternative to traditional crops. In particular, an economic-financial a…
Economic feasibility of stationary electrochemical storages for electric bill management applications: The Italian scenario
2016
Battery energy storage systems (BESSs) are expected to become a fundamental element of the electricity infrastructure, thanks to their ability to decouple generation and demand over time. BESSs can also be used to store electricity during low-price hours, when the demand is low, and to meet the demand during peak hours, thus leading to savings for the consumer. This work focuses on the economic viability of BESS from the point of view of the electricity customer. The analysis refers to a lithium-ion (Li-ion), an advanced lead-acid, a zinc-based, a sodium-sulphur (NaS) and a flow battery. The total investment and replacement costs are estimated in order to calculate the cumulated cash flow, …
Exposure-Based Cash-Flow-At-Risk for Value-Creating Risk Management Under Macroeconomic Uncertainty
2010
A strategically minded CFO will realize that strategic corporate risk management is about finding the right balance between risk prevention and proactive value generation. Efficient risk and performance management requires adequate assessment of risk and risk exposures on the one hand and performance on the other. Properly designed, a risk measure should provide information on to what extend the firm's performance is at risk, what is causing that risk, the relative importance of non-value-adding and value-adding risk, and the possibilities to use risk management to reduce total risk. In this chapter, we present an approach – exposure-based cash-flow-at-risk – to calculating a firm's downsid…
Unveiling the Antecedents of International Diversification: An Agency Theory Approach
2014
While various studies have developed hypotheses about the antecedents of international diversification drawing mainly on the resource-based view, the behavioral theory of the firm, and the transaction costs literature, we advance our understanding by investigating the explanatory power of agency costs of free cash flow arguments. Using a sample panel of 167 Italian firms longitudinally evaluated during the 1980-2010 period, this study tests whether the firm’s choice to spread operations in multiple foreign countries is conditioned by excess of free cash flow and debt, especially in firm-contexts where agency problems are exacerbated by managers or large shareholders’ opportunism. We find th…
Applying Dynamic Performance Management to Enterprises
2016
This chapter will illustrate two examples of DPM applied to enterprises. Cases will show how DPM can support a learning-oriented approach into the P&C processes of business organizations.
CO-EVOLUTION BETWEEN CCC-DRIVEN CASH FLOW MANAGEMENT AND TRANSFORMATION OF R&D – AMAZON'S ENDEAVOR
2019
Amazon became the world R&D leader in 2017 by rapidly increasing R&D investment. The company’s extremely large amount of R&D funds is the result of an ample free cash flow generated by sophisticated cash conversion cycle (CCC) management. Increased R&D induced business advancement and lean cost structure construction leading to further increase in cash flow which has stimulated interaction between vendors, customers, and Amazon via the Amazon marketplace. Activated interaction accelerated CCC advancement, a subsequent free cash flow increase, and user-driven innovation, thus accelerated the transformation of routine or periodic alteration activities into significant improvem…
Parametric measurement of partial damage in building.
2015
The valuation of the property damage is a double appraisal that considers a before situation and an after situation to the damage, reported both to the same moment. An elementary measure of the partial damage is represented, in a first approximation, by the restoration’s cost, when the return of the original situation is possible and economically profitable, this last circumstance imposes that the cost is great or equal to the suffered damage. In the building practice, the restoration of the buildings is often combined with operations of substitution and integration. For the indemnity of the partial damage, the restoration’s cost also includes the lost incomes of the property for the period…
Free Cash Flow and the Governance of French Firms (Free Cash Flow Et Gouvernance Des Entreprises Françaises)
2008
The limitation of the problem of free cash flow depends on the efficiency of governance mechanisms. In our study, we chose four main governance mechanisms, namely debt, the distribution of dividends, boards of directors and ownership structure. On the basis of a sample of 94 French firms in 2004, the results show that sustained distribution of dividends, a small-sized board of directors and some level of share-ownership by board members and managers are necessary conditions to the resolution of free cash flow. External directors and controlling interests act on free cash flow risk rather indirectly by favouring a massive distribution of dividends. The CEO/chairman duality produces the oppos…
Financial Companies in Latvia: Why are they Coming to the Bond Market?
2019
In the period 2013-2017 Latvian corporate bond market had experienced the abrupt growth of the number of public Latvian corporate bond issues outstanding. The base of the expansion was formed by the financing activity of Latvian financial sector issuers (FSIs) with their weight in the pool of corporate bond issues listed in Nasdaq Riga at 85%. In 2019, FSIs remain the main issuer in Latvian corporate bond market (64% of the number of issues (Nasdaq Baltic, 2019)). The financing needs and preferences of the FSIs not only shape the segment profitability but also build Latvian corporate bond market sustainability. 
 Academic papers provide broad motivation for corporate debt issuing: an e…
Incentive systems for risky investment decisions under unknown preferences
2017
Abstract Our paper examines how to design incentive systems for managers making multi-period risky investment decisions. We show how compensation functions and performance measures must be designed to ensure that managers implement the expected value-maximizing set of projects. The Relative Benefit Cost Allocation (RBCA) Scheme 1 and its extensions revealed in literature on unknown time preferences generally fail to do so under unknown time and risk preferences. We illustrate that when coping with such unknown preferences in a risky setting, a specific state-dependent allocation rule is required. We introduce such an allocation scheme, which we refer to as the State-Contingent RBCA Scheme, …