Search results for "Cash flow"
showing 10 items of 61 documents
The predictive ability and value relevance of accounting measures
2011
Accepted version of an article published in the journal: International Journal of Economics and Accounting. Also available from the publisher at: http://dx.doi.org/10.1504/IJEA.2011.041894 Empirical accounting research sometimes assumes that the value relevance of accounting variables can be indirectly assessed by studying the ability of the variables to forecast future cash flow and earnings. This study investigates the relationships between short-term cash flow and earnings prediction tests and value relevance analyses. I find that earnings prediction tests might be good substitutes for value relevance analyses, whereas cash flow prediction tests merely provide indications with respect to…
Beyond Subsidies: A Study of Sustainable Public Subordinated Debt in Spain
2019
Evidence from business shows that small- and medium-sized enterprises (SMEs) are fragile. They suffer from a high mortality rate that primarily owes to difficulties in securing financing as a result of major information asymmetries. Despite these difficulties, SMEs provide the economic backbone of all economically developed countries. Aware of the key role of SMEs in national economic stability and of the financial problems that SMEs face, governments have designed a range of financial and tax measures to protect them. These financial measures include a highly specific form of public financing called subordinated debt. This concept refers to debt with the lowest credit seniority, just befor…
DIVIDEND POLICY AND THE NATURE OF CASH FLOWS OF SELECTED COMPANIES LISTED ON THE FRANKFURT STOCK EXCHANGE
2021
The main purpose of the article was to investigate whether there are joint-stock companies listed on the FSE between 2000-2017 that paid regular dividends. The sample was divided into dividend companies and other companies. A subsidiary objective was to compare the dividend companies and other companies concerning the direction of their cash flows (positive/negative). Based on the conducted research, it should be stated that dividend companies had on average higher DPS than other companies. The conducted research shows that the percentage of dividend companies in variants 1-4 among the models of eight cases based on selected information on cash flows is greater than that of other companies.…
Empirical analysis of daily cash flow time-series and its implications for forecasting
2019
Usual assumptions on the statistical properties of daily net cash flows include normality, absence of correlation and stationarity. We provide a comprehensive study based on a real-world cash flow data set showing that: (i) the usual assumption of normality, absence of correlation and stationarity hardly appear; (ii) non-linearity is often relevant for forecasting; and (iii) typical data transformations have little impact on linearity and normality. This evidence may lead to consider a more data-driven approach such as time-series forecasting in an attempt to provide cash managers with expert systems in cash management.
Renewable Energy Technologies for Economic Development
2020
Indonesian villages are facing dangerous condition. Every year, young people are deserting the villages. To overcome this problem, Tangsi Jaya hamlet, West Java, has been provided with 18 kW micro-hydro to supply electricity both to the community and to Small Processing Center for ground coffee production. Results of cash flow analysis for ground coffee in Tangsi Jaya hamlet, with total investment of IDR 110 750 000 and discount rate of 18 % for 5 yr. Banyumeneng I hamlet, Yogyakarta with an investment cost IDR 95 000 000 and production cost of IDR 34 195 000 yr–1 and the interest rate of 14 % yr–1, the payback period was estimated to be 3 yr with ROI of 40 %. PEST analysics indicate that t…
Behind the curtain of international diversification: An agency theory perspective
2018
This paper dissects the antecedents of international diversification through the lens of the agency cost of free cash flow arguments. It explores whether the partial convergence of interests among managers, majority shareholders, and minority shareholders affects a firm's choice to diversify internationally. Using a sample panel of 60 Italian firms evaluated longitudinally from 2004 to 2014, the study tests whether a firm's international diversification is affected by its free cash flow (as the ultimate source of managerial discretion) and debt (as the main constraint to managerial discretion), especially in firm contexts that exacerbate agency problems. We find that the effects on internat…
Performance Dissimilarities in European Union Manufacturing: The Effect of Ownership and Technological Intensity
2021
Our paper addresses the relevance of a set of continuous and categorical variables that describe industry characteristics to differences in performance between foreign versus locally owned companies in industries with dissimilar levels of technological intensity. Including data on manufacturing sector performance from 20 European Union member countries and covering the 2009–2016 period, we used the random forests methodology to identify the best predictors of EU manufacturing industries’ a priori classification based on two main attributes: ownership (foreign versus local) and technological intensity. We found that EU foreign-owned businesses dominate locally owned ones in terms of size, wh…
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 and periodic alteration activities into significant improvement simultaneou…
The efficiency of the incentives for the public buildings’ energy retrofit. The case of the Italian Regions of the “Objective Convergence”
2017
Gli obiettivi di riduzione del consumo energetico e delle emissioni di gas serra, enunciati in molte Direttive europee, hanno posto in risalto la necessità di promuovere interventi di miglioramento dell’efficienza energetica del patrimonio edilizio esistente. Le amministrazioni locali, in particolare, dovrebbero assumersi la responsabilità di diffondere la cultura ambientale anche effettuando interventi di retrofit negli edifici pubblici di loro proprietà, sulla base di diagnosi energetiche degli edifici, di proposte progettuali e di verifiche del raggiungimento della convenienza finanziaria, che può essere agevolata dall’erogazione di incentivi. L’Unione Province d’Italia (UPI) nel 2013, n…
Evaluation of asset replacement strategies considering economic cycles: lessons from the machinery rental business
2015
Contains fulltext : 144492.pdf (Publisher’s version ) (Open Access) In businesses with heavy capital investments, the effective management of assets is crucial, in particular in the fleet rental business where assets are the major source of revenues. One important question in this regard concerns the replacement of used assets and the purchase of new assets. Thus, the objective of this study is to evaluate performance effects of asset replacement strategies. In order to maximise net cash flow of a rental company for construction machinery, a range of scenarios investigating the timing and nature of policies for replacing the fleet are analysed. Simulation findings are then discussed to gene…