Journal articles on the topic 'Cash flow asymmetry'
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Ascioglu, Asli, Shantaram P. Hegde, and John B. McDermott. "Information asymmetry and investment–cash flow sensitivity." Journal of Banking & Finance 32, no. 6 (June 2008): 1036–48. http://dx.doi.org/10.1016/j.jbankfin.2007.09.018.
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Permatasari, Devi. "PROFIT MANAGEMENT IN ISLAM AND THE FACTORS." International Journal of Islamic Business Ethics 3, no. 1 (March 5, 2018): 388. http://dx.doi.org/10.30659/ijibe.3.1.388-400.
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Profit Management is a phenomenon that is influenced by various factors. Among them are such as information asymmetry and free cash flow. In Indonesia alone there are already cases of profit management from several years ago. This study aims to determine the influence of information asymmetry, and free cash flow on profit management practices in manufacturing companies listed on the Stock Exchange. The population of this study are the manufacturing companies that listed in Indonesia Stock Exchange (IDX) 2012-2016. The sampling technique used was purposive sampling method. The method of analysis used in this study using multiple linear regression. The total number of samples for this study are 180 companies. But, there are found 45 samples as outlier should be excluded from sample observation. So,the final samples for this study are 136 companies. The results showed that the free cash flow has influence on profit management, and information asymmetry has no effect on profit management.Keywords:�� �Profit managements, Information Asymmetry, Free cash flow.
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Lee, Jaehong, and Eunsoo Kim. "Foreign Monitoring and Predictability of Future Cash Flow." Sustainability 11, no. 18 (September 4, 2019): 4832. http://dx.doi.org/10.3390/su11184832.
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A company’s sustainability is generally determined by whether it is able to create a positive long-term cash flow. This paper investigates whether the predictive ability of cash flows and earnings in forecasting future cash flows differs depending on the foreign investors’ ownership. Based on firms listed in the Korea Stock Exchange market from 2000 to 2017, we find that earnings and cash flow components of financial statements enhance the predictability of future cash flow in the Korean stock market. Conversely, foreign investors showed a tendency to decide on investments based on operating cash flow instead of earnings when predicting future cash flow. These findings indicate that reliability towards earnings may fall since foreign investors’ concerns are on the prospects of earnings management. These results were strengthened by the addition of several more analyses including cluster analyses, consideration of information asymmetry and the chaebol governance.
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Chowdhury, Jaideep, Raman Kumar, and Dilip Shome. "Investment–cash flow sensitivity under changing information asymmetry." Journal of Banking & Finance 62 (January 2016): 28–40. http://dx.doi.org/10.1016/j.jbankfin.2015.07.003.
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Khansalar, Ehsan, Mahmoud Lari Dasht-Bayaz, and Aref Miri. "Stock Yield and Information Asymmetry." International Journal of Economics and Finance 7, no. 11 (October 27, 2015): 250. http://dx.doi.org/10.5539/ijef.v7n11p250.
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One of the most fundamental economic problems is optimal allocation of resources towards high-yield investments with reasonable risk. For this achievement, it is required to have operational evaluation criteria that some of which emphasize on cash flow variables and some others on the information content of accounting interest. In order to achieve this end, in this study, the relationship between yields before interest and tax and operational cash flow with shareholders’ output in information asymmetry conditions during the life cycle of the listed companies in Tehran Stock Exchange was investigated. To do testing hypotheses, multiple pooled data Regression was used. To separate the companies through life-cycle, Anthony and Ramesh’s (1992) research was used. The results of empirical tests results, by using information related to 142 firms during 2008 to 2013, indicate that in each of three stages of growth-maturity and the firms’ fading and interest before benefit and tax-have no positive and significant relationship with the output of the firms’ stock on the other hand, the interest before benefit and tax rather than operational cash flow have more information content.
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Nurainun Bangun, Christabel,. "PENGARUH FREE CASH FLOW, STRUKTUR MODAL, DAN ASIMETRI INFORMASI TERHADAP MANAJEMEN LABA." Jurnal Paradigma Akuntansi 2, no. 3 (October 9, 2020): 1010. http://dx.doi.org/10.24912/jpa.v2i3.9526.
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The research objective is to present empirical evidence of the effect of free cash flow, capital structure, and information asymmetry on earnings management in manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. Company samples used in this study were 39 companies. This research uses a purposive sampling techniqueand uses panel data assisted by the E-views 10+ program in data processing. T test results in this research indicate that free cash flow has a negative and significant effect on earnings management, while capital structure and information asymmetry have no significant effect on earnings management.
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Oh, Hyun Min, and Ho young Shin. "A Study on the Relationship between Analysts’ Cash Flow Forecasts Issuance and Accounting Information: Evidence from Korea." Sustainability 11, no. 12 (June 20, 2019): 3399. http://dx.doi.org/10.3390/su11123399.
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This study analyzes the relationship between the future cash flow forecast information provided by financial analysts and accounting information. We examine whether the joint issuance of financial analyst earnings forecasts and cash flow forecasts from 2011 to 2015 contributes to the information usefulness of Korean listed firms. The empirical results of this study are as follows. First, the issuance of analysts’ cash flow forecasts and earnings forecast accuracy were significant positive values. Cash flow forecast accuracy and earnings forecast accuracy were significant positive values. Second, the issuance of analysts’ cash flow forecasts and buy–sell bid spread are significant negative values. These results show that the information asymmetry between the manager and the investor can be reduced based on the rich information environment. This study suggests that cash flow forecasting information of financial analysts provides important evidence for capital market participants because it provides evidence that capital market participants’ information can be used as useful information for economic decision-making. These results show the sustainability of a firm from the viewpoint of a financial analyst who acts as an intermediary and external supervisor in the capital market. In addition, the analysts’ cash flow forecasting information is expected to reduce the information asymmetry between the company and the investor, thereby increasing the transparency and sustainability of the firm.
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Hong, Hyun A., Yongtae Kim, and Gerald J. Lobo. "Does Financial Reporting Conservatism Mitigate Underinvestment?" Journal of Accounting, Auditing & Finance 34, no. 2 (August 29, 2017): 258–83. http://dx.doi.org/10.1177/0148558x17719786.
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This study examines the role of financial reporting conservatism in mitigating underinvestment problems. Recognizing that volatile cash flows increase the need to access external capital markets and that agency conflicts and information asymmetry make external capital costlier than internal capital, which leads managers to forgo valuable investment projects, Minton and Schrand document a negative relation between cash flow volatility and investment. We draw on Minton and Schrand’s framework to isolate underinvestment problems and hypothesize and document that conservatism mitigates the negative relation between cash flow volatility and investment and that this mitigative effect is more pronounced for firms with ex ante more severe agency conflicts. We also document that conservatism mitigates the sensitivity of investment to cash flow volatility by facilitating access to external capital.
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Oh, Hyun Min, Sam Bock Park, and Jong Hyun Kim. "Do Analysts’ Cash Flow Forecasts Improve Firm Value?" International Journal of Financial Studies 8, no. 4 (October 13, 2020): 60. http://dx.doi.org/10.3390/ijfs8040060.
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We examine whether analysts’ cash flow forecasts improve firm value. First, we analyze whether the joint issuance of financial analysts’ earnings and cash flow forecasts improve firm value. Second, we analyze whether the quality of analysts’ cash flow forecasts improve firm value. The empirical results of our study are as follows. First, the joint issuance of analysts’ earnings and cash flow forecasts has a significantly positive effect on firm value; providing cash flow forecasts reduces information asymmetry and increases earnings quality, thereby increasing corporate value. Second, the quality of analysts’ cash flow forecasts has a significantly positive effect on firm value; the more accurate cash flow forecasts are, the higher firm value is. Our study provides empirical evidence for that the conclusion that cash flow forecasting information produced by financial analysts provides useful information for capital market participants in economic decision making.
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Collins, Daniel W., Paul Hribar, and Xiaoli (Shaolee) Tian. "Cash flow asymmetry: Causes and implications for conditional conservatism research." Journal of Accounting and Economics 58, no. 2-3 (November 2014): 173–200. http://dx.doi.org/10.1016/j.jacceco.2014.08.010.
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Yulistia M, Resti, Nurul Dwi Septiyani, Arie Frinola Minovia, and Yunilma Yunilma. "Leverage, Arus Kas Operasi, Ukuran Perusahaan, Intensitas Aset Tetap dan Revaluasi Aset Tetap." Wahana Riset Akuntansi 9, no. 1 (April 30, 2021): 1. http://dx.doi.org/10.24036/wra.v9i1.111817.
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Since Indonesian accounting standards allow companies to choose between cost model and revaluation model on their fixed asset, there are still few companies that revalued their assets. This study examines what factors make banking companies choose to revaluate fixed asset, that are contracting factors (leverage, operating cash flow), political factors (firm size) and asymmetry information (intensity of fixed assets). By using logistic regression, the result of this study showed that firm size and fixed asset intensity had a positive effect on the company choice to revaluate fixed assets, while leverage had a negative effect on fixed asset revaluation. This study support early research with regard to contracting, political cost and asymmetry information. This study failed to find the effect of operating cash flow on fixed asset revaluation. Based on the results of this study, banks should consider leverage, company size and the intensity of fixed assets more than cash flow when choosing to revaluate fixed assets. Keywords: Leverage; Operating Cash Flow; Size Firm; Fixed Asset Intensity; Fixed Asset Revaluation
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Hu, Huajing, Yili Lian, and Chih-Huei Su. "Do bank lending relationships affect corporate cash policy?" Review of Accounting and Finance 15, no. 4 (November 14, 2016): 394–415. http://dx.doi.org/10.1108/raf-11-2015-0167.
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Purpose The purpose of this paper is to examine whether prior bank lending relationships affect firms’ liquidity management. Design/methodology/approach The authors mainly work on evaluating first, whether prior lending relationships affect corporate cash holdings? and second, whether the cash flow sensitivity of cash varies systemically with lending relationships. Three different ways are used to define lending relationships, including the lending relationship dummy, a firm’s maximum relationship intensity in terms of number of deals across all lenders and a firm’s maximum relationship intensity in terms of dollar amounts across all lenders. In addition, the paper applies two-stage least squares (2SLS) to address the concern of endogeneity between firms’ liquidity management and banking relationships. Findings The authors find that firms with lending relationships maintain a lower level of cash holdings and save less cash out of cash flow. Furthermore, the effect of lending relationships is more profound for firms with high cash flow. The results suggest that prior lending relations alleviate information asymmetry, lower the cost of capital and therefore affect firms’ propensity to retain cash and maintain a high level of cash holdings. Research limitations/implications This paper contributes to both the liquidity management literature and the literature on the value of maintaining lending relationships with banks. Researchers should take into consideration the lending relationships built over the course of the lending when assessing firms’ cash policies. Social implications Bank lending relationship mitigates the information asymmetry problem, one type of market friction, and facilitates firms’ future external financing, thereby affecting firms’ cash policies and giving more flexibility in liquidity management. The value of lending relationships distinguishes bank loans from public bonds. Therefore, firms, especially those facing more information asymmetry issue, should take into account the benefits from lending relationships in their future debt financing. Originality/value Extant literature examines how firm characteristics affect firms’ cash holdings. This paper introduces a new factor that could explain corporate cash policy.
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Teng, Min, and Toyohiko Hachiya. "Agency Problems and Stock Repurchases: Evidence from Japan." Review of Pacific Basin Financial Markets and Policies 16, no. 03 (September 2013): 1350016. http://dx.doi.org/10.1142/s0219091513500161.
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This paper examines stock repurchases from an agency perspective by identifying agency costs across three dimensions — interest conflicts and information asymmetry, managerial discretion, and the use of alternative mechanisms to mitigate agency conflicts. We use ownership structure as a proxy for interest conflicts and information asymmetry, employ cash balance and free cash flow as two measures of managerial discretion, and consider cash dividends and interest-bearing liabilities as alternative vehicles for distributing cash. We find that a monitoring structure motivates managers to mitigate agency costs through stock repurchases. Particularly, monitored firms with higher levels of cash balance prefer cash dividends to stock repurchases, whereas monitored firms with more cash dividends repurchase more shares because of their stronger incentive to mitigate agency costs. However, when firms have a very high level of dividends, they substitute stock repurchases for dividends to avoid a dividend cut in the future.
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Komera, Surenderrao, and P. J. Jijo Lukose. "Heterogeneity and Asymmetry in Speed of Leverage Adjustment: The Indian Experience." Review of Pacific Basin Financial Markets and Policies 19, no. 03 (September 2016): 1650019. http://dx.doi.org/10.1142/s0219091516500193.
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In this paper, we examine firms' capital structure adjustment behavior and estimate their “speed of adjustment” toward optimal leverage ratios by employing a dynamic, partial adjustment model. We find that sample firms on an average offset half of the deviation from their target leverage ratios in less than one and half (1.41) years. Such evidence suggests optimal capital structure behavior among sample firms. Further, we report cross sectional heterogeneity and asymmetry in speed of adjustment estimates, resulting from varied leverage adjustment costs across the sample firms. We find higher speed of adjustment estimates among larger sample firms suggesting higher leverage adjustment costs for smaller firms. Business group affiliation does not seem to influence the costs of sample firms' leverage adjustment. Over-levered firms report higher speed of adjustment estimates, suggesting that sample firms do not consider debt financing as a “disciplining mechanism” for managers. Further, we find lower speed of adjustment estimates for sample firms with higher cash flow, implying that Indian markets do not actively accommodate firms' cash flow needs. Thus, our findings reveal complex asymmetric information problems and consequent varied leverage adjustment costs among emerging market firms.
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Salehi, Mahdi, and Horta Azimi. "The effect of cash flow information asymmetry criteria on conservatism in Iran." Afro-Asian J. of Finance and Accounting 12, no. 1 (2022): 105. http://dx.doi.org/10.1504/aajfa.2022.121751.
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Schrand, Catherine. "Discussion of “Cash flow asymmetry: Causes and implications for conditional conservatism research”." Journal of Accounting and Economics 58, no. 2-3 (November 2014): 201–7. http://dx.doi.org/10.1016/j.jacceco.2014.09.003.
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Cahyati, Ari Dewi. "DAMPAK PENERAPAN IFRS TERHADAP KUALITAS LAPORAN KEUANGAN DAN ARUS INVESTASI." JRAK: Jurnal Riset Akuntansi dan Komputerisasi Akuntansi 9, no. 1 (February 19, 2018): 49–74. http://dx.doi.org/10.33558/jrak.v9i1.1362.
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Objective of this study is to determine whether IFRS convergence will improve the quality of financial statements as indicated by decreasing levels of information asymmetry and declining real earnings management. IFRS convergence is measured by Dummy variables years before convergence and year after covergency while accounting quality reporting is measured by decreasing earnings management level and decreasing level of information asymmetry. Real earnings management uses abnormal cash flow, abnormal discretionary expense and abnormal production cost (Roydhuchory, 2006) while information asymmetry uses adjusted spreads. While the variable of investment flows is measured by the percentage of foreign investment ownership in Indonesia (defond et.al, 2011).
This research uses a quantitative approach that aims to test the theory. The research method used is explanatory research. The sample of this study are all companies listed on BEI. Secondary data research data. From purposive sampling, 102 samples were obtained for IFRS convergence effect on Real earnings management and 100 companies to test the effect of IFRS convergence on asymmetry and information asymmetry on global investment flows. Methods of data analysis using linear regression analysis.
The result of statistical analysis shows 1) that IFRS convergence has negative effect on real profit management. This indicates that the higher the IFRS convergence the real earnings management will decrease. 2) IFRS convergence has no effect on information asymmetry and 3) Information asymmetry has no effect on global investment flows in Indonesia.
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Ji, Amy E. "The Impact of Board Size on Firm-Level Capital Investment Efficiency." International Journal of Economics and Finance 8, no. 10 (September 23, 2016): 110. http://dx.doi.org/10.5539/ijef.v8n10p110.
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<p>The study aims to examine whether and how board structure is associated with firm-level capital investment efficiency. Specifically, I investigate whether the size of a firm’s board is associated with the sensitivity of investments to the availability of internal funds. I hypothesize and find that board size is inversely related to investment-cash flow sensitivity. Larger boards seem to mitigate investment-cash flow sensitivity by reducing information asymmetry between managers and external capital providers. The study is important as it reveals that board structure influences the corporate investment policy, which is one of the most important firm economic decisions.</p>
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Wicaksono, Agung. "PENGARUH ASIMETRI INFORMASI TERHADAP MANAJEMEN LABA MELALUI MANIPULASI AKTIVITAS RIIL." Jurnal Riset Ekonomi dan Manajemen 15, no. 1 (August 7, 2015): 84. http://dx.doi.org/10.17970/jrem.15.150107.id.
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ABSTRACTThis study aims to examine the effect of information asymmetry on earnings management through real activities manipulation. Real activities manipulation was abserved through cash flow from operations. Companies included in LQ-45 Index from from 2009 to 2011 used as sample. Data was obtained from Indonesia Capital Market Directory of Investment Galery of Janabadra University. Results from multiple regression analysis shows that information asymmetry are positive significant for real activities manipulation through cash flow from operations. The results are consistent with Richardson (1998), Roychoduwury (2006), Rahmawati et.al (2006) Deng and Ong (2013), and Lasdi (2013).ABSTRAKSI Penelitian ini bertujuan untuk menguji pengaruh asimetri informasi terhadap manajemen laba melalui manipulasi aktivitas riel. Manipulasi aktivitas riel diamati melalui arus kas operasi. Sampel yang digunakan adalah perusahaan-perusahaan yang tergabung dalam Indeks LQ-45 dari tahun 2009 sampai dengan 2011. Data diperoleh dari Indonesia Capital Market Directory of Investement. Hasil dari analisis regresi berganda menunjukkan bahwa asimetri informasi berpengaruh secara positif signifikan terhadap manipulasi aktivitas riel melalui arus kas operasi. Hasil penelitian ini konsisten dengan temuan Richardson (1998), Roychoduwury (2006), Rahmawati et.al (2006) Deng and Ong (2013), dan Lasdi (2013).
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Kumar, Manoj, L. M. Bhole, and Shahrokh M. Saudagaran. "Investment-Cash Flow Sensitivity and Access to Foreign Capital of Overseas Listed Indian Firms." Vikalpa: The Journal for Decision Makers 28, no. 1 (January 2003): 47–60. http://dx.doi.org/10.1177/0256090920030104.
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Between May 1992 and June 2001, 72 Indian firms listed their 85 Depositary Receipt (DR) programmes on the foreign capital markets. Most Indian DR programmes are listed on the European exchanges rather than on the US exchanges. This paper studies firm-level financial data of foreign listed Indian firms to see whether the ‘improved access to external capital markets’ is an important consideration for Indian firms listing on the foreign markets. The results of the study can be interpreted in terms of informational disclosure requirements of the foreign markets (in our case the Global Depositary Receipts– GDR markets) where sample Indian firms have listed their securities. The firms listed on the US exchanges have to necessarily follow US GAAP in casting of their accounts and disclose more. Hence, US listing acts as a signal about the firm's level of transparency and disclosures which, in turn, reduces informational asymmetry between managers and external investors. Thus, listing of emerging markets' firms on the US exchanges improves their access to the external capital markets and hence reduces their investment-to-cash flow sensitivity. Also, till recently, two-way fungibility in the Indian DRs was not allowed. Foreign institutional investors (FIIs), investing in the Indian GDRs, are restricted from owning and trading in Indian shares listed on the Indian stock exchanges. Besides, Indian citizens were prohibited from owning and trading in Indian DRs listed on the foreign markets. These factors impede the free flow of information between the GDR markets and Indian markets. Thus, GDR listings by the Indian firms are rendered ineffective in removing the information asymmetry about the listing firms and in improving Indian firms' access to the external markets. The results of the study have the following implications: The policy makers should adopt a regulatory framework so that firms are encouraged to disclose more and thus become transparent. Managers should prefer listing firms' securities only on stringent and transparent foreign markets with listing requirements. The measures proposed will reduce the informational asymmetry for the Indian firms and hence improve their access to the external capital markets. But if these markets do not improve their transparency and disclosure levels, they will lose out to the US markets. Naturally, firms contemplating fresh listing on foreign markets will list their securities on the more transparent US markets to improve their access to the external capital markets. Corporate decision makers should realize that the listings on the US markets send strong signals about the firms' level of transparency and disclosures to the investing community. This signalling effect is rather less in case of listing on the GDR markets. This could be the reason for US exchanges becoming more successful in attracting foreign listings by the Indian firms compared to the London and the Luxembourg exchanges in recent years.
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Eny, Nur. "Meta-Analysis: Satu Dekade Penelitian Manajemen Laba di Indonesia." Akuntabilitas 12, no. 1 (October 13, 2019): 19–36. http://dx.doi.org/10.15408/akt.v12i1.10617.
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This study aims to examine whether corporate characteristics and information asymmetry affects earnings management in Indonesia. This study use meta-analysis techniques approach with 35 samples from international and national accredited journals as well as Indonesian National Symposium of Accounting proceedings. Research results reinforce meta- analysis findings of previous studies where earnings management is done for different purposes. Management’s motivation to perform earnings management varies between opportunistic and efficient contract motives. Empirical evidence shows that corporate characteristics are predictors of earnings management. Cash flow from operations and information asymmetry significantly affect earnings management. This empirical evidence supports several previous meta-analysis in accounting field where moderator measurement variables has an effect on heterogeneity of research findings.
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Alsharairi, Malek, Emma L. Black, and Christoph Hofer. "The impact of pre-merger earnings management on non-cash acquisition premia: Evidence from the European market for corporate control." Corporate Ownership and Control 12, no. 4 (2015): 587–601. http://dx.doi.org/10.22495/cocv12i4c5p8.
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Using 1320 European mergers and acquisitions (M&As) completed between 2003 and 2012, this paper investigates patterns of earnings management and the implications for non-cash acquisition premia considering both the form of payment and the target firm’s listing status. The empirical evidence documented in this study suggests that management teams engage in pre-merger upward earnings management and that it is more evident for private rather than for publicly listed targets in order to compensate for the higher information asymmetry. This earnings management procedure leads to higher takeover premia even after controlling for variables such as the acquirer’s internal investment opportunities, profitability or available free cash flow.
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Wale, Letenah Ejigu. "Financing Constraints And Financial Development: Evidence From Selected African Countries." International Business & Economics Research Journal (IBER) 14, no. 4 (July 14, 2015): 655. http://dx.doi.org/10.19030/iber.v14i4.9355.
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Economic theory posits that financial development eases firm level financing constraints by mitigating information asymmetry and contracting imperfections. This paper empirically tests for this notion by using firm level data from selected African countries. The sampled firms show positive and significant investment cash flow sensitivity coefficients indicating they are financially constrained. Financial development is found to have a significant and negative effect on the estimated cash flow sensitivity coefficients indicating it reduces firm financial constraints. The result further shows that such positive role of financial development is attributed to financial intermediary development and not to stock market development. A unique result to the African reality is that even firms in countries with high level of financial development are financially constrained. This implies the financial development in Africa is too weak and more policy attention is needed in this regard.
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Arimany-Serrat, Núria, M. Àngels Farreras-Noguer, and Germà Coenders. "New developments in financial statement analysis. Liquidity in the winery sector." Accounting 8, no. 3 (2022): 355–66. http://dx.doi.org/10.5267/j.ac.2021.10.002.
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The aim of this article is to analyse the short-term solvency of large companies in the wine sector in the period 2014-2018, in two relevant Spanish wine-production areas and assess significant differences in time and between regions. Liquidity is a direct threat to the financial health of companies and is analysed using standard financial indicators and compositional data, in order to prevent the common outlier, non-linearity and asymmetry problems in standard financial ratios. The study shows that the compositional ratios are statistically more adequate and that the turnover indicator between operating cash inflows with respect to current investments and operating cash outflows with respect to current liabilities is a complementary indicator to standard cash flow ratios. Wineries in La Rioja have better liquidity than Catalan wineries in the period under study.
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Gralewska, Milena, and Anna Białek-Jaworska. "Information Asymmetry, Capital Structure and Equity Value of Firms Listed on the WSE." Journal of Banking and Financial Economics 2022, no. 1(17) (2022): 17–41. http://dx.doi.org/10.7172/2353-6845.jbfe.2022.1.2.
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The paper investigates the impact of capital structure and information asymmetry on the value of companies listed on the Warsaw Stock Exchange. The study was conducted using the ordinary least squares (OLS) method on a sample of 273 companies in 2017 and the GMM dynamic paneldata approach with instrumental variables. Data retrieved from the Notoria, Bloomberg and Orbis databases were used. The results show that despite its impact on reducing the cost of capital, increasing debt does not lead to an increase in equity value. Therefore, the benefi ts of higher short-term leverage are limited and visible only for long-term debt. On the other hand, despite bigger information asymmetry, companies are valued higher, which means that asymmetrical information does not necessarily hurt valuation in the short term but in the long term. The results contribute to the literature on firms’ use of leverage under information asymmetry, showing higher trust in cash flow than profits in books.
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Tiara Kusuma, Syallomitha, Sri Hastuti, and Sri Wahyuni Widiastuti. "The Effect of Information Asymmetry and Profitability on Real Earnings Management." International Journal of Economics, Business and Management Research 06, no. 09 (2022): 27–38. http://dx.doi.org/10.51505/ijebmr.2022.6903.
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This research aims to determine the effect of information asymmetry and profitability on real earnings management. The research method used is quantitative with annual report data from a sample of manufacturing firms listed on the Indonesia Stock Exchange in 2016-2020 which were selected based on purposive sampling. The number of samples used in this study was 515 firmyears. The hypothesis was tested by multiple linear regression test. The findings found in this research are the independent variables, namely information asymmetry, which has a significant effect on real earnings management with abnormal Cash Flow Operations (Abn CFO) and abnormal production costs (Abn PROD), but has no significant effect on real earnings management with abnormal discretionary expenses (Abn DISC). Profitability has a significant effect on real earnings management with the three proxies (Abn CFO, Abn PROD, and Abn DISC). However, if the research focuses on firms suspecting real earnings management, information asymmetry has an effect on earnings management with the Abn DISC.
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Biddle, Gary C., and Gilles Hilary. "Accounting Quality and Firm-Level Capital Investment." Accounting Review 81, no. 5 (October 1, 2006): 963–82. http://dx.doi.org/10.2308/accr.2006.81.5.963.
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This study examines how accounting quality relates to firm-level capital investment efficiency. Our first hypothesis is that higher quality accounting enhances investment efficiency by reducing information asymmetry between managers and outside suppliers of capital. Our second hypothesis is that this effect should be stronger in economies where financing is largely provided through arm's-length transactions compared with countries where creditors supply more capital. Our results are consistent with these hypotheses both across and within countries. They are robust to alternative econometric specifications, different measures of accounting quality and investment-cash flow sensitivity, and numerous control variables.
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Rachmawati, Sistya. "ASIMETRI INFORMASI MEMODERASI BEBAN PAJAK TANGGUHAN DAN MANAJEMEN LABA." JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK 5, no. 1 (May 9, 2019): 41. http://dx.doi.org/10.25105/jipak.v5i1.4470.
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<strong><strong></strong></strong><em>The objective of this research is to ident6 the direct and indirect influences of deffered tax expense toward earning management which is moderated by asymmetry Information. This research examines </em>50 <em>manufacturing companies listed in Jakarta Stock Exchange and issues auditedfinancial statement since 2004-2006. The statistical method </em><em>used to test the hypothesis is Multiple Regression Model. The empirical result of this research indicates that deffered tax expense has influence to Earning Management. Test results suggest that by using the Multiple regression analysis, deffered tax expense have a direct positive significant influences to earning management, while asymmetry information have no significant influences toearning management. The control variable Cash Flow operation have positive significant influence toEarning Management, while size and growth has no significant influence Earning Management.</em><strong><strong></strong></strong>
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Tan, Huina. "The Research on the Measurement of Inefficiency Investment Degree of China's GEM Listed Companies." Asian Journal of Social Science Studies 2, no. 1 (November 15, 2016): 130. http://dx.doi.org/10.20849/ajsss.v2i1.130.
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October 30, 2009, the GEM officially launched, which was an important step to improve China's capital market system. For the listed companies, investment efficiency is one of the three major investment decisions. Due to the short period of study, the research area is less related to the GEM listed companies.Theoretically, in the perfect market described by Modigliani and Miller, investment decisions are totally determined by investment opportunities, regardless of the impact of other factors. But in the real world of imperfections, agent problems and information asymmetry can lead to inefficient investment. From the point of view of the Principal-agent Theory and the Free Cash Flow hypothesis, the principal-agent conflict between the shareholders and the senior managers leads to the fact that the senior managers maximize their own utility and put the free cash flow into the project whose net present value is not greater than zero. In the information asymmetry theory and financing constraints hypothesis, the information asymmetry between the company and the external investors will make it difficult for external investors to make an accurate valuation of the company. To reduce the loss of the risk, they tend to underestimate the value of the company, so the financing cost of company in the capital market have been raised, and when the internal cash is in the shortage, the senior managers do not want to choose external financing with high cost to meet the investment need, to give up investment in project whose the net present value is larger than zero, resulting in underinvestment.At the level of empirical analysis, this paper chose the financial data and market transaction data of the GEM listed companies from 2010 to 2015 to study. Based on the Expected Investment Model of Richardson (2006), this paper used the generalized difference moment method (GMM) to estimate the expected additional investment, with the amount of investment, resulting in overinvestment and underinvestment. The conclusion is that there are overinvestment behavior and underinvestment behavior of the GEM listed companies in the research period.This paper measured the level of inefficient investment of listed companies on the GEM, so that the micro-subject in the multi-level capital market can clearly define the direction of its own need. In addition, we also hope to provide empirical reference for the policy makers in the formulation of relevant policies to create a good market environment for listed companies.
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Sugiyanto, Sugiyanto, and Alexander Candra. "GOOD CORPORATE GOVERNANCE, CONSERVATISM ACCOUNTING, REAL EARNINGS MANAGEMENT, AND INFORMATION ASYMMETRY ON SHARE RETURN." JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi) 4, no. 1 (April 1, 2019): 9–18. http://dx.doi.org/10.34204/jiafe.v4i1.1073.
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This study aims to analyze the influence of accounting conservatism, real earnings management, and information asymmetry on stock returns. This study uses the sample of all manufacturing companies listed on the Indonesia Stock Exchange during the period 2013 to 2015. The total number of companies used as sample research is 44 companies with observations for three years. Pursuant to purposive sampling method, total of research sample is 132 financial reports and annual reports. The results of this study indicate: (1) Good corporate governance has a significant negative effect on stock return with a significance value of 0.002<0.050; (2) Conservatism with accrual-based conservatism proxy has a significant negative effect on stock return with a significance value of 0.032 <0.050; (3) Real earnings management with the proxy of discretionary cash flow has no effect on stock return with a significance value of 0.050; and (4) Information asymmetry with proxy of bid-ask spread has no effect on stock return with significance value of 0.453> 0.05.
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Shevlin, Terry, Oktay Urcan, and Florin P. Vasvari. "Corporate Tax Avoidance and Debt Costs." Journal of the American Taxation Association 42, no. 2 (October 12, 2019): 117–43. http://dx.doi.org/10.2308/atax-52605.
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ABSTRACT We use path analysis to investigate how corporate tax avoidance is priced in bond yields and bank loan spreads. We find that approximately one half of the total effect of tax avoidance on bond yields is explained through the negative effect of tax avoidance on future pre-tax cash flow levels and volatility and, to a lesser extent, lower information quality. The effects of these mediating variables are much less pronounced for bank loan spreads. The results of additional cross-sectional analyses indicate that, relative to bond investors, banks are able to reduce information asymmetry problems more effectively, given their access to firms' private information and greater ability to monitor borrowers. JEL Classifications: G31; G32; M10; O16.
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Park, Jin-Ha, Jiyeon Lee, and Youn-Sik Choi. "The Effects of Divergence between Cash Flow and Voting Rights on the Relevance of Fair Disclosure and Credit Ratings." Sustainability 11, no. 13 (July 3, 2019): 3657. http://dx.doi.org/10.3390/su11133657.
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This study investigates the effects of governance structure on the relationship between disclosure quality and credit ratings. Firms with greater control-ownership divergence are more likely to pursue their private interests because controlling shareholders obtain the benefit of managerial decision in accordance with controlling interest and they bear the related risk only to the shareholding value. The greater divergence decreases the level of disclosure, thereby increasing the information asymmetry and agency problems, and, ultimately may be harmful to the firms’ sustainability. We analyze data from the listed Korean companies belonging to a large business group that issued corporate bonds for the period 2003–2015, and find that there is a positive relationship between fair disclosure and credit ratings; however, it is weakened as the control-ownership divergence increases. These results suggest that firms with a high quality of disclosure are assigned better credit ratings. However, if their governance structures are poor, the capital market may penalize the reliability of the released information.
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Dutta, Sunil, and Panos N. Patatoukas. "Identifying Conditional Conservatism in Financial Accounting Data: Theory and Evidence." Accounting Review 92, no. 4 (November 1, 2016): 191–216. http://dx.doi.org/10.2308/accr-51640.
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ABSTRACT Using a financial reporting and valuation model, we investigate the construct validity of Basu's (1997) asymmetric timeliness (AT) regression coefficient as a measure of conditional conservatism in corporate financial reporting. We predict that the AT coefficient will be positive even in the absence of conditional conservatism, and it will vary with non-accounting factors even if the degree of conditional conservatism is held constant. Our empirical analysis shows that AT coefficient estimates vary in directions predicted by our theory. Specifically, we find that AT coefficient estimates increase with expected returns and asymmetry in the distribution of returns, and decrease with cash flow persistence. Importantly, we identify the spread between the variances of bad news and good news accruals as an alternative measure of conditional conservatism that is free of the effects confounding the AT coefficient. Consistent with a key implication of conditional conservatism, we find that the variance of bad news accruals is significantly higher than the variance of good news accruals primarily due to conditionally conservative accruals related to inventory write-downs, long-term asset write-downs, and goodwill impairments. A series of placebo tests provides additional support for the construct validity of our alternative measure of conditional conservatism. Data Availability: Data are publicly available from the sources indicated in the text.
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Octaviani, Febiriyanti Ayu, and Cynthia Afriani Utama. "Impact of Corporate Hedging and ESG on Stock Price Crash Risk: Evidence from Indonesian Energy Firms." Indian Journal of Corporate Governance 15, no. 2 (December 2022): 149–69. http://dx.doi.org/10.1177/09746862221129341.
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Corporate hedging and environmental, social and governance (ESG) affect the transparency of a firm’s information environment because they can reduce information asymmetry and volatility of cash flow. Focus of this research investigates the impact of corporate hedging, as a risk management strategy, and ESG on stock price crash risk in Indonesian energy firms. This study finds that both hedging and ESG do not affect stock crash risk. This may be caused by a natural hedge conducted by the company. Another explanation is, most energy companies in Indonesia that use hedging do not report the proportion of the amount of hedging on the company’s financial statements. Further, this study fails to find the effect of ESG on stock crash risk. This finding corroborates Silva (2022) , who states that the benefit of ESG is less effective in developing countries like Indonesia, which are characterised by weak investor protection and regulation enforcement.
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Yatsenko, Ivan. "POLYVARIANCE OF SCIENTIFIC APPROACHES TO UNDERSTANDING THE ESSENCE OF THE CONCEPT «INVESTMENT SERVICES»." 61, no. 61 (August 26, 2021): 92–100. http://dx.doi.org/10.26565/2524-2547-2021-61-09.
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The article reflects the results of scientific research of alternative approaches to the interpretation of the definition of investment services. The advantages and disadvantages of the target, production, product, process, instrumental, infrastructural, resource and opportunistic approaches to understanding the essence of the concept of “investment service” are identified and systematized. An improved definition of the concept of an investment service is the result of the choice of an investment idea, analysis of investment information and the use of investment technologies by investment firms in order to realize the financial interests of clients - individual and institutional investors, taking into account their investment profile (expected investment return, maximum losses, risk tolerance and the duration of the investment horizon). The proposed author's approach to the interpretation of the concept of an investment service takes into account the totality of such attributive features as complementarity, substitutionality, analyticity, manufacturability, personification, riskiness and timing. It was found that the providers of investment financial services are investment firms - legal and non-legal entities that on an ongoing basis provide at least one type of investment services to third parties and / or carry out at least one type of investment activity. The recipients of investment services are clients of investment companies - individual and institutional investors. The circle of financial interests of investors was determined, including: increase and mobilization of additional financial resources; accumulation of savings; formation of an optimal investment portfolio in terms of profitability, risk, liquidity, etc .; reducing the negative impact of information asymmetry on investment choice; reduction of transaction costs of investment operations; expanding the list of investment alternatives and deepening the diversification of investment assets; redistribution of risks associated with the provision of investment services. It is established that the definition of an investment service is derived from the generic concept of a financial service. However, if the concept of a financial service is always associated with cash flow, then in the case of the provision of investment services, cash flow is conditioned by the formation and use of investment capital.
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Drábková, Zita. "Fraud Risk Management from the Perspective of CFEBT Risk Triangle of Accounting Errors and Frauds." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 66, no. 5 (2018): 1261–66. http://dx.doi.org/10.11118/actaun201866051261.
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The objective of the present contribution is to evaluate the risk of the impact of accounting errors and frauds on reported accounting records on the basis of the CFEBT risk triangle of accounting errors and frauds. The analysis is conducted in the framework of a case study that examines a selected accounting unit predominantly operating in trade, with respect to financial statements reported during the years 2011–2015. The evaluation of the risk of impacts of accounting errors and frauds forms a part of one of the three vertices of the CFEBT risk triangle. The contribution presents results of the CFEBT approach at three levels of the M‑score and analyses significant discrepancies between the generation of earnings and increase in cash flow during the observed periods. The CFEBT risk triangle was designed as a tool for detection, evaluation and management of the risk of accounting errors and frauds in circumstances of the Czech accounting standards and International Financial Reporting Standards (IFRS). The essential aim of the triangle is to reduce information asymmetry between authors and users of accounting records, or, in other words, to increase the quality of available information with respect to decision‑making on the basis of available accounting information.
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Huang, Hsu-Huei, Min-Lee Chan, and Yu-Sheng Chang. "Risk to Firm Value for Taiwanese Companies Investing in China: Who Fares Better?" Review of Pacific Basin Financial Markets and Policies 13, no. 02 (June 2010): 237–66. http://dx.doi.org/10.1142/s0219091510001937.
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The main purpose of this paper is to study the effect on the stock price that a Taiwanese company may experience when announcing it is engaging in foreign direct investment in China. This study has been able to observe the influence of political risk on the FDI announcement effect during one of the tensest periods in the history of the cross-Strait relationship. We have found an overall significantly negative effect for all companies in Taiwan that announced they were investing directly in China during this risky period. We have further found that companies with higher free cash flow and greater information asymmetry experience worse stock price reactions to such announcements, and that those with low growth opportunities, higher institutional shareholdings, outside directors on the board, or a higher ratio of outside directors experience better stock price reactions to the announcements. Finally, we have found that the FDI announcement effect is better for firms whose board chairman also serves as the CEO or for firms that are family controlled.
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Dang Ngoc, Hung, Van Vu Thi Thuy, and Hung Nguyen Duy. "The sensitivity of cash flows to cash holdings: case studies at Vietnamese enterprises." Investment Management and Financial Innovations 17, no. 1 (March 30, 2020): 266–76. http://dx.doi.org/10.21511/imfi.17(1).2020.23.
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Cash management plays an important role in the business operations. However, holding too much cash results in unnecessary expenses such as opportunity costs, management costs, and representation costs due to negative cash holdings. This study examines the sensitivity of cash flows to cash holdings. The paper uses regression methods for table data, including FEM, REM, GLS, and GMM regression, with a research dataset including non-financial companies listed on Vietnam’s stock market in the period 2008–2018. Empirical results show that cash flows are positively associated with cash holdings levels. At the same time, research has shown an asymmetry in cash flows sensitivity to cash holdings. The study also classified the companies with limited and no financial restrictions. In the Vietnamese context, compared to unrestricted companies, financially restricted companies have a lower cash flows sensitivity. The research results are the basis for enterprises to manage cash better and increase business efficiency in the future.
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Elrazaz, Tariq Zaglol, Moataz Elmassri, and Yousry Ahmed. "Real earnings manipulation surrounding mergers and acquisitions: the targets’ perspective." International Journal of Accounting & Information Management 29, no. 3 (June 8, 2021): 429–51. http://dx.doi.org/10.1108/ijaim-11-2020-0188.
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Purpose This paper aims to investigate whether UK public targets manage their earnings using real activities manipulation in the period prior to the announcement of a mergers and acquisition (M&A). It also examines whether the payment method in M&As affects the degree to which takeover targets manipulate earnings. Design/methodology/approach Using a sample of 131 UK listed targets acquired over the period 1995–2013, this paper examines real earnings management (REM) by employing OLS regression models. The data related to deals have been mainly collected from Thomson One Banker and Thomson Reuters Eikon databases. REM is examined by investigating abnormal cash flow from operations, abnormal discretionary expenses and abnormal production costs. This analysis was supplemented by conducting additional robustness checks. Findings The results show that UK takeover targets manage earnings upwards through cutting discretionary expenses in the year prior to the acquisition, while they do not do so by manipulating sales or production costs. Moreover, targets of cash-only or mixed-payment deals do not have the same strong motivation to manage their earnings as stock-financed deal target counterparts do. Our results continue to hold after using alternative accrual earnings management (EM) measures, controlling for unobservable firm heterogeneity using the fixed-effect model and controlling for endogeneity using the two-stage Heckman (1979) model. Practical implications The main findings of this study could be beneficial for various parties involved M&As, such as standard setters and regulators. A need arises to improve disclosure rules and enhance overall financial reporting quality in the capital markets with the aim of reducing information asymmetry and agency conflicts. Originality/value As far as the literature on EM around M&As is concerned, only EM by acquirers has been examined, and not much attention has been paid to targets’ EM.
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Odit, M. P., and Y. D. Gobardhun. "The Determinants Of Financial Leverage Of SMEs In Mauritius." International Business & Economics Research Journal (IBER) 10, no. 3 (March 14, 2011): 113. http://dx.doi.org/10.19030/iber.v10i3.4107.
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The key aim of this paper is to test the relevance of the different financing theories for explaining capital structure choice in the Small and Medium Enterprises (SMEs) sector in Mauritius. One of the areas of financial theory that has worried much of academicians and professionals is debt policy decisions in firms due to the limited study in this field. Three of the most relevant theories of capital structure are explored, namely the Trade Off Theory, the Agency Theory and the Pecking Order Theory (POH). Hence, in order to shed more light over this issue, an empirical analysis has been carried out over a panel data sample of 25 firms of SMEs for the period 2002-2008, using quantitative analysis. The panel data methodology is used to test empirical hypotheses and controls for firm heteroskecedasticity and corrects for autocorrelation among the variables that are involved. The findings show that some theories are not in line as such with the results obtained from the analysis as the POH. However, some of the Capital Structure Theories are considered important in determining financial leverage of SMEs in Mauritius like agency costs involved, information asymmetry problems, liquidity and cash flow problems. The main implication of this study is to understand the position of SME in Mauritius in terms of their debt and its importance and contribution to the National Income.
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MAEKAWA, YASUNORI. "EXISTENCE OF ASYMMETRIC BURGERS VORTICES AND THEIR ASYMPTOTIC BEHAVIOR AT LARGE CIRCULATIONS." Mathematical Models and Methods in Applied Sciences 19, no. 05 (May 2009): 669–705. http://dx.doi.org/10.1142/s0218202509003577.
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The asymmetric Burgers vortices are vortex solutions to the three-dimensional stationary Navier–Stokes equations for viscous incompressible fluids in the presence of an asymmetric background straining flow. The asymmetry of the straining flow is expressed by a non-negative parameter less than 1. The Burgers vortices have been used as a model which expresses tube-like structures of concentrated vorticity fields in turbulence, and they are numerically well investigated especially in the case of large circulation numbers. However, their existence was proved mathematically only when either the asymmetry of the straining flow is not so strong or the circulation number is sufficiently small. In this paper, we prove the existence of asymmetric Burgers vortices for all circulation numbers and each asymmetry parameter less than 1. We also obtain their asymptotic expansion at large circulation numbers, which gives an explanation for a symmetrizing effect by a fast rotation.
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Mann, Bikram Jit Singh, and Reena Kohli. "Impact of Mode of Payment and Insider Ownership on Target and Acquirer's Announcement Returns in India." Vikalpa: The Journal for Decision Makers 34, no. 4 (October 2009): 51–66. http://dx.doi.org/10.1177/0256090920090405.
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This paper examines the effect of mode of financing employed in mergers and acquisitions on the announcement period returns of the acquiring and the target companies' shareholders in India. The study is divided into two sections. The first section analyses the announcement returns of both the acquiring as well as the target companies� shareholders with the help of market model. It has been found that maximum value has been created for the shareholders of the target companies engaged in cash offers followed by the shareholders of acquiring companies engaged in cash offers, target companies engaged in stock offers, and lastly, for acquiring companies engaged in stock offers. However, in contrast to the results of prior research, the study shows that the within-group stock offers have created positive wealth for acquiring companies� shareholders that have generally lost value in stock offers. To discern the probable reasons for the positive value being created in within-group stock offers especially for the acquiring companies� shareholders, the second section analyses the interaction between the announcement returns of the acquiring and the target companies engaged in stock offers and insiders'/promoters' ownership level. This is so because the review of literature highlights two views regarding value creation in within-group stock offers. One view relates to the tunnelling effect whereas the other relates to the value added effect. The tunnelling effect states that within group acquisitions by the acquiring companies with controlling shareholders are aimed at shifting the resources from one group company where the acquiring company has lower cash flow rights to another group company where it has higher cash flow rights or to itself for maximizing the benefits of the controlling shareholders at the expense of minority shareholders. The value added view states that within-group acquisitions by the acquiring companies with controlling shareholders are aimed at creating various financial and economic synergies by pooling the resources of both the companies in the post- acquisition period. The analysis reveals that the within-group stock offers have created value with increase in level of ownership with maximum value being created when controlling shareholders' ownership reaches the highest level (the category OWN> 49%). Likewise, not only acquiring companies' but the target companies' shareholders have gained positive returns. It means the stock market has reacted positively to the news of stock offers when these are undertaken by companies belonging to the same group as well as when the ownership is concentrated in the hands of promoters. Thus, we deduce that in India, within-group stock offers are not aimed at tunnelling of resources by the acquiring companies; rather these are aimed at creating value by providing an internal market where the group companies can pool their resources and hence can create various kinds of synergies in the post-acquisition period. Hence, the results are in consonance with the value added view. Thus, in the world of information asymmetry, the mode of financing along with ownership structures are the signals through which the stock market assesses the value creating potential of an acquisition.
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Bakaul, Saifur Rahman, Yan Kui Wang, Guang Xing Wu, and Qureshi Humayun. "Effect of Nose Tip on Wing Rock of Slender Delta Wing." Applied Mechanics and Materials 232 (November 2012): 178–83. http://dx.doi.org/10.4028/www.scientific.net/amm.232.178.
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The root cause of wing rock is investigated by examining two slender delta wings (700 and 850 sweep back angle) in wind tunnel using force measurement, pressure measurement and PIV techniques. The results show presence of asymmetric flow at 200 angle of attack and initiation of wing rock at the same point for 850 model while there is neither asymmetric flow nor wing rock for 700 model suggesting close relation of flow asymmetry with wing rock. Investigation with three apparently identical nose sections reveals that the asymmetry comes from the area very close to the wing tip. This asymmetric flow causes the vortices to interact in a complex way resulting in wing rock when the vortices are in close proximity (such as for 850 model), which is not the case when the vortices are ‘comparatively away’ (such as 700 model) from each other.
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Masihabadi, Abolghasem, Ali Taghavi Moghaddam, Amir Shams Kulukhi, and Rouhollah Rahmani. "The Relationship between Earnings before Interest and Taxes and Operating Cash Flow and Stock Return under the Condition of Information Asymmetry in Abadan and Arak Petrochemical Companies through Markov-Switching Approach." Marketing and Branding Research 2, no. 1 (January 1, 2015): 74–88. http://dx.doi.org/10.33844/mbr.2015.60316.
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Wajebo, Temesgen Woldamanuel. "MICRO, SMALL AND MEDIUM ENTERPRISES ACCESS TO FINANCE CHALLENGES IN SUPPLY SIDE PERSPECTIVE IN ETHIOPIA." International Journal of Small and Medium Enterprises 5, no. 2 (October 15, 2022): 23–31. http://dx.doi.org/10.46281/ijsmes.v5i1.1808.
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Empirical evidence shows that the contribution of Micro, Small and Medium Enterprises Empirical evidence shows that the contribution of Micro, Small and Medium Enterprises (MSMEs) to gross domestic product growth, job creation, and poverty alleviation is high. Because of limited access to finance and other factors, a significant number of MSMEs, particularly in developing countries, cannot realize their full potential. The study investigates the micro, small, and medium enterprises' access to finance challenges from the supply-side perspective in Ethiopia. The study employed descriptive analysis using survey data collected from purposely selected 11 banks and 9 micro-finance institutions (MFI). The results show that the lack of collateral, unavailability of financial records, poor pre-loan savings, low loan repayment rate, business feasibility problems, credit information asymmetry, attitudinal problems of the MSMEs, and diversion of the loan are demand-side constraints. From the financial institution’s perspective, the result shows that the liquidity problem, the influence of unfair competition from government banks, the lack of competent human resources, political leaders’ intervention, especially in MFI, corruption, the COVID-19 pandemic, political instability, and inadequate capital are major obstacles. Macroeconomic conditions related to challenges such as foreign exchange shortages, inflation, and trade imbalances are also mentioned as major obstacles. According to the findings of this study, designing and implementing business skill development in mindset, business planning, business bookkeeping, and financial reports can help MSMEs access loans. For financial institutions, the study suggests cash flow-based lending products, applying psychometric testing for credit scoring, improving the governance of the government-affiliated MFIs, and automating the MFIs.
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Zhang, Yi, Rui Shan Yuan, Kun Lu, and Yong Hui Xie. "Asymmetric Sinusoidal Motion Effect on Aerodynamics of a Plunging Airfoil." Advanced Materials Research 712-715 (June 2013): 1410–13. http://dx.doi.org/10.4028/www.scientific.net/amr.712-715.1410.
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The effect of asymmetric sinusoidal motion on plunging airfoil aerodynamics was studied by numerical simulations for 2-D flow around a NACA0012 airfoil at Re=1.35×105. Various unsteady parameters (nondimensional plunging amplitude,h, reduced frequency,k) were applied to investigate the effect of asymmetry parameterSon the instantaneous force coefficient and flow pattern. It is found that more thrust can be generated by asymmetric sinusoidal plunging motion compared with pure sinusoidal case, and the thrust force generated increases with asymmetry. Moreover, a significant difference in the wake pattern at different values ofSis observed. The trailing wake is displaced downward relative to the free stream forSless than 0.5, and displaced upward forSlarger than 0.5.
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Park, Hyun-Young, Soo-Joon Chae, and Moon-Kyung Cho. "Controlling shareholders’ ownership structure, foreign investors’ monitoring, and investment efficiency." Investment Management and Financial Innovations 13, no. 3 (September 23, 2016): 159–70. http://dx.doi.org/10.21511/imfi.13(3-1).2016.02.
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This study examines the effect of control-ownership wedge (the difference between control rights and cash flow rights) on investment efficiency. Subsequently, the authors analyze how the level of foreign investor monitoring influences the association between control-ownership wedge and investment efficiency. The results of the analyses show that investment efficiency deteriorates as control-ownership wedge increases. This, in turn, suggests that when this wedge increases, agency problems and information asymmetry between controlling and minority shareholders become more severe. The authors also perform an analysis by dividing the samples into four groups based on foreign investor ratio from the least to the greatest. The result shows that control-ownership wedge deteriorates investment efficiency in the group with the least foreign investor ratio. The result reveals that foreign investor monitoring is effective corporate governance mechanism to monitor the controlling shareholders’ investment decisions. We also find that higher control-ownership wedge with over-investment tendency negatively affects firm performance, which implies an inefficient investment behavior. This result suggests that as controlling shareholders’ ownership increases, controlling shareholders becomes more and more reluctant to assume a loss of firm value as a result of reduced investment efficiency. This study provides additional evidence that the greater control-ownership wedge decreases investment efficiency, while recent studies on the relation between control-ownership wedge and investment efficiency suggest mixed evidence. In addition, the results show that foreign investors play an effective monitoring role when controlling shareholders are in position of exercising exclusive power. The results indicate the importance of external investors’ monitoring over investment decisions. Keywords: control-ownership wedge, foreign ownership, investment efficiency, over-investment, under-investment. JEL Classification: G32, M41
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SPOHN, A., M. MORY, and E. J. HOPFINGER. "Experiments on vortex breakdown in a confined flow generated by a rotating disc." Journal of Fluid Mechanics 370 (September 10, 1998): 73–99. http://dx.doi.org/10.1017/s0022112098002092.
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The steady-state flow generated by a rotating bottom in a closed cylindrical container and the resulting vortex breakdown bubbles have been studied experimentally. By comparing the flow inside two different container geometries, one with a rigid cover and the other with a free surface, we examined the way in which the formation and structure of the breakdown bubbles depend on the surrounding flow. Details of the flow were visualized by means of the electrolytic precipitation technique, whereas a particle tracking technique was used to characterize the whole flow field. We found that the breakdown bubbles inside the container flow are in many ways similar to those in vortex tubes. First, the bubbles are open with in- and outflow and second, their structure is, like in the case of vortex breakdown in pipe flows, highly axisymmetric on the upstream side of the bubble and asymmetric on their rear side. However, and surprisingly, we observed bubbles which are open and stationary at the same time. This shows that open breakdown bubbles are not necessarily the result of periodic oscillations of the recirculation zone. The asymmetry of the flow structure is found to be related to the existence of asymmetric flow separations on the container wall. If the angular velocity of the rotating bottom is increased the evolution of the breakdown bubbles is different in both configurations: in the rigid cover case the breakdown bubbles disappear but persist in the free surface case.
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Drábková, Zita, and Martin Pech. "COMPARISON OF CREATIVE ACCOUNTING RISKS IN SMALL ENTERPRISES: THE DIFFERENT BRANCHES PERSPECTIVE." E+M Ekonomie a Management 25, no. 1 (March 2022): 113–29. http://dx.doi.org/10.15240/tul/001/2022-1-007.
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Small enterprises are exposed to new challenges in examining the impact of creative accounting on their financial statements, particularly when assessing ‘going concerned’ conditions and increasing the risk of fraud. The article aims to identify accounting errors and fraud risks made by accounting adjustments, thus distorting the true and fair presentation of financial statements. We aim to explore the risks of creative accounting based on the relationship between profit creation (EBT) and cash flow (CF) by applying the CFEBT risk triangle method. We analyze small enterprises operating mainly in the trade, processing, and construction industry to achieve this. The detected risks of accounting records were subsequently compared and evaluated in the selected branches of activities. Our research findings confirmed that M-score values were primarily negative for the monitored industries of small enterprises. The resulting values point to applying creative accounting methods – earning management, which pursues, in particular, tax optimization, and, on the other hand, the fulfilment of profitability criteria. A more profound analysis of selected accounting items and financial indicators confirmed more substantial differences between the trade and construction industries. Differences between the branches were found in one-half of the financial indicators and most of the 14 accounting items monitored. The accounting risks ascertained may be used as a tool for reducing the information asymmetry between authors of accounting records and users of reported accounting data and information. The detection and evaluation of risks of accounting errors and errors beyond the economic substance of reported data may considerably improve the quality of decision-making of internal and external users and is also used by persons authorized to conduct the administration and Corporate Governance for increasing the efficiency of enterprises’ internal control systems.
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Wong, Martin L. M., and Johnny C. L. Chan. "Modeling the Effects of Land–Sea Roughness Contrast on Tropical Cyclone Winds." Journal of the Atmospheric Sciences 64, no. 9 (September 1, 2007): 3249–64. http://dx.doi.org/10.1175/jas4027.1.
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Abstract The fifth-generation Pennsylvania State University–National Center for Atmospheric Research (PSU–NCAR) Mesoscale Model (MM5) is used to simulate tropical cyclone (TC) wind distribution near landfall. On an f plane at 15°N, the effects of the different surface roughness between the land and sea on the wind asymmetry is examined under a strong constraint of a dry atmosphere and time-invariant axisymmetric mass fields. The winds are found to adjust toward a steady state for prelandfall (50, 100, and 150 km offshore), landfall, and postlandfall (50, 100, and 150 km inland) TC positions. The TC core is asymmetric even when it lies completely offshore or inland. The surface (10 m) wind asymmetry at the core for pre- (post) landfall position is apparently related to the acceleration (deceleration) of the flow that has just moved over the sea (land) as a response to the sudden change of surface friction. For prelandfall TC positions, the resulted strong surface inflow to the left and front left (relative to the direction pointing from sea to land) also induces a tangential (or total) wind maxima at a smaller radius, about 90° downstream of the maximum inflow, consistent with the absolute angular momentum advection (or work done by pressure). The surface maximum wind is of similar magnitude as the gradient wind. There is also a small region of weak outflow just inside the wind maxima. For postlandfall TC positions, inflow is weakened to the right and rear right associated with the onshore flow. Both onshore and offshore flows affect the surface wind asymmetry of the core in the landfall case. Above the surface and near the top of the planetary boundary layer (PBL), the wind is also asymmetric and a strongly supergradient tangential wind is primarily maintained by vertical advection of the radial wind. Much of the steady-state vertical structure of the asymmetric wind is similar to that forced by the motion-induced frictional asymmetry, as found in previous studies. The associated asymmetry of surface and PBL convergences has radial dependence. For example, the landfall case has stronger PBL convergence to the left for the 0–50-km core region, due to the radial inflow, but to the right for the 100–500-km outer region, due to the tangential wind convergence along the coastline. The strong constraint is then removed by considering an experiment that includes moisture, cumulus heating, and the free adjustments of mass fields. The TC is weakening and the sea level pressure has a slightly wavenumber-1 feature with larger gradient wind to the right than to the left, consistent with the drift toward the land. The asymmetric features of the wind are found to be very similar to those in the conceptual experiments.