Academic literature on the topic 'Free cash flow'

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Journal articles on the topic "Free cash flow"

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Kauer, Robert T., and J. B. Silvers. "Hospital free cash flow." Health Care Management Review 16, no. 4 (1991): 67–78. http://dx.doi.org/10.1097/00004010-199101640-00009.

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Kauer, Robert T., and J. B. Silvers. "Hospital free cash flow." Health Care Management Review 16, no. 4 (1991): 67–78. http://dx.doi.org/10.1097/00004010-199123000-00009.

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Susila, Ihwan. "Ekuivalensi Pendekatan Capital Cash Flow dan Free Cash Flow dalam Risky Cash Flow." Riset Akuntansi dan Keuangan Indonesia 3, no. 2 (March 6, 2017): 195–213. http://dx.doi.org/10.23917/reaksi.v3i2.3488.

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Sitthipongpanich, Thitima. "Family ownership and free cash flow." International Journal of Managerial Finance 13, no. 2 (April 3, 2017): 133–48. http://dx.doi.org/10.1108/ijmf-06-2014-0088.

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Purpose The purpose of this paper is to investigate the effect of family ownership on investment-cash flow sensitivity and on firm performance. Design/methodology/approach The author uses panel data to examine the relationship between investment and cash flow and between family ownership and the firm performance of Thai listed firms from 2001 to 2008. To account for the endogeneity of the lagged dependent variable, the investment equation is estimated by the generalized method of moments, following Arellano and Bond (1991). Findings The presence of family owners reduces the sensitivity of investment and cash flow. At low and high levels of family ownership, an increase in family shareholding leads to lower investment-cash flow sensitivity. In contrast, firms with medium family ownership levels have higher investment-cash flow sensitivity. Only at high levels of family ownership is firm performance positively related to family shareholding. Originality/value The ownership levels of family shareholders affect the investment-cash flow sensitivity in an S-shaped relation, supporting the interest alignment and entrenchment effects. When family shareholders have high ownership incentives, their interest alignment reduces the agency costs of free cash flow problems and leads to higher firm performance.
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Nurwahyudi, Heru, and Aida Ainul Mardiyah. "PENGARUH FREE CASH FLOW TERHADAP UTANG." Media Riset Akuntansi, Auditing dan Informasi 4, no. 2 (May 16, 2017): 107. http://dx.doi.org/10.25105/mraai.v4i2.1857.

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<p style="text-indent: 0.4in; margin-top: 0.18in; margin-bottom: 0in;" align="JUSTIFY"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><span style="font-size: small;"><span style="font-style: normal;">The </span></span></span></span></span><em><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">objective of this research is to analysis and giving the empirical evidence </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">about the free cas flow and the effect of it for debt policy of public companies in </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">Indonesia. This research was using 66 samples of manufacturing companies in the </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">year 2000 and 90 sample of manufacturing in the year 2001. This sample was </span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">elected based on purposive sampling, the hypothesis test is the simple tinier regres-</span></span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">sion.</span></span></span></span></em></span></span></p><p style="text-indent: 0.4in; margin-top: 0.03in; margin-bottom: 0in;" align="JUSTIFY"><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><em><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">The result of this research showed that hypothesis were suppo</span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;"><span style="font-size: small;">4</span></span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">ted, there </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">are influence of free cash flow to the debt policy. In the agency relationship there is </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">differences interest between the principal and the manager also created agency </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">problems that finally also create agency cost. In the shareholders (agents) point of </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">view, this can be minimize by the third party (debtho!der) whose come by the debt </span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">policy. Increasing financing with debt will reduce the conflict between the sharehold-</span></span><span style="font-family: Arial,sans-serif;"><span style="font-size: small;">ers and the management.</span></span></em></span></span></p><p style="margin-top: 0.2in; margin-bottom: 0in;"><span style="font-size: small;"><span style="font-size: small;"><span style="font-family: Arial Narrow,sans-serif;"><em><strong>Keywords: </strong></em></span></span><span style="font-size: small;"><span style="font-family: Arial,sans-serif;"><em><span style="font-weight: normal;">Free cash flow, debt</span></em></span></span></span></p>
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Aharon, David Yecham, Yoram Kroll, and Sivan Riff. "Degree of free cash flow leverage." Review of Accounting and Finance 18, no. 3 (August 12, 2019): 346–65. http://dx.doi.org/10.1108/raf-03-2018-0061.

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Purpose This paper aims to forgo the conventional (degree of operating leverage) risk measure by replacing elasticity of operating profits with respect to output with elasticity of free cash flow (FCF) with respect to optimal output and by considering exogenous random demand shocks for the firm’s products as a source of risk. Design/methodology/approach The elasticity risk measure accounts for corporate taxes and the cost of bankruptcy. The methodology is selecting optimal level of production investment and capital structure to generate efficient frontier of expected FCF and its risk in terms of its elasticity with respect to output. Findings The risk measure leads to efficient frontier between expected FCF and its idiosyncratic managerial risk. The model also resolves the empirical debate on the tradeoff between operating and financial leverages. Originality/value It is the first elasticity risk measure that embodied the impact of future level of capital expenditure, total level of assets and their sensitivity to random shocks in the product market.
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Hackel, Kenneth S., Joshua Livnat, and Atul Rai. "A Free Cash Flow Investment Anomaly." Journal of Accounting, Auditing & Finance 15, no. 1 (January 2000): 1–24. http://dx.doi.org/10.1177/0148558x0001500101.

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Reiter, Sara Ann. "Storytellers, stories, and “free cash flow”." International Review of Financial Analysis 3, no. 3 (January 1994): 209–24. http://dx.doi.org/10.1016/1057-5219(94)90009-4.

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Carpenter, Robert E. "Finance constraints or free cash flow?" Empirica 22, no. 3 (October 1995): 185–209. http://dx.doi.org/10.1007/bf01384150.

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Richardson, Scott. "Over-investment of free cash flow." Review of Accounting Studies 11, no. 2-3 (June 23, 2006): 159–89. http://dx.doi.org/10.1007/s11142-006-9012-1.

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Dissertations / Theses on the topic "Free cash flow"

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Van, Eeden Anita. "Determining the minimum free cash flow required for capital intensive organisations." Thesis, Stellenbosch : Stellenbosch University, 2009. http://hdl.handle.net/10019.1/18128.

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Thesis (MBA)--Stellenbosch University, 2009.
ENGLISH ABSTRACT: In financial accounting and economics it is important to be in a position to determine replacement costs of assets. These costs are essential for application of inflation accounting , the calculation of Tobin's q ratio, as well as the calculation of the free cash flow (FCF) of a company. However, it proves to be a daunting challenge to calculate especially accurate replacement costs of a company's fixed assets, owing to the considerable effects that inflation, economic lifetime of fixed assets and procurement strategies have on the replacement cost, and consequently on the FCF of a firm . In determining the FCF of a company, it is essential to differentiate between the goals of a company to maintain fixed assets or to expand operations. This split is difficult to ascertain, as few companies in South Africa publish the split. In addition to this, it is important to distinguish between actual required replacement investment (RI) and that part of the RI that has conveniently been postponed. As a consequence, analysis of a company's financial statements to determine replacement costs and subsequent FCF is further complicated. In 2001 , Hall investigated the behaviour of the average age of fixed assets as calculated with the Cutler and Westwick (1973: 17) formula , by developing specific inflation adjustment models. Hall's (2001: 40) study provided insight into some of the factors that might influence the application of the Cutler and Westwick formula for the calculation of the average age of a firm 's fixed assets. This research report developed Hall's models further, and proved that the average age of fixed assets, as used in the determination of replacement cost of a company's fixed assets, could only be applied in zero inflation conditions. In positive inflation periods, the average age of fixed assets as per Cutler and Westwick's formula is understated, resulting in lower estimations of replacement costs. Consequently, the additional depreciation as determined for inflation accounting purposes is understated. In this research report, the models referred to above were developed further to determine the required maintenance (or RI) part of the investing decision relative to depreciation written off. This enabled the modelling of FCF for companies, assuming certain model restrictions, such as constant inflation, evenroll fixed asset replacement and similar economic lifetimes for all fixed assets. However, this only provides some insight into the trends of additional deprecation required for different situations, and cannot be used in practice as comparable practical situations do not exist. This study therefore concludes that the calculation of replacement cost for inflation accounting purposes proves to be a very complex problem. No simple or quick model currently exists for determining the replacement costs of fixed assets and subsequent FCF of a firm. It is recommended that, when determining the replacement costs of fixed assets, the detailed fixed asset register of the firm should be consulted in order to determine the unique asset investment and replacement strategies, as well as the split of the fixed assets in terms of different economic lifetimes. Once this information is available, unique models per company could be developed based on the applicable inflation rates.
AFRIKAANSE OPSOMMING: In finansiële rekeningkunde en ekonomie is dit belangrik om die vervangingswaarde van bates te kan bereken. Hierdie waardes is essensieël vir die toepassing van inflasieboekhouding, die berekening van Tobin se q-verhouding, sowel as die berekening van die vrye kontantvloei (VKV) van 'n maatskappy. Dit blyk egter 'n moeilike taak te wees om veral akkurate vervangingswaardes vir 'n maatskappy se vaste bates te bereken, as gevolg van die groet invloed wat inflasie, die ekonomiese leeftyd van die vaste bates en aankoopstrategieë het op die vervangingswaarde, en gevolglik op die VKV van 'n maatskappy. In die bepaling van die VKV van 'n maatskappy, is dit noodsaaklik om te onderskei tussen die doelwitte van die maatskappy om vaste bates te onderhou of om werksaamhede uit te brei. Hierdie onderskeid is moeilik om te bepaal, aangesien min maatskappye in Suid-Afrika dit publiseer. Ook is dit belangrik om te onderskei tussen werklik benodigde vervangingsinvestering (VVI) en daardie gedeelte van die VVI wat gerieflikheidshalwe uitgestel is. Die ontleding van 'n maatskappy se finansiële state ten einde vervangingswaarde en die daaropvolgende VKV te bereken, word gevolglik verder gekompliseer. In 2001 het Hall die gedrag van die gemiddelde ouderdom van vaste bates ondersoek met behulp van die Cutler en Westwick (1973: 17) formule, deur spesifieke inflasie aangepaste modelle te ontwikkel. Hall (2001 : 40) se studie het insig gebied in sommige van die faktore wat die toepassing van die Cutler en Westwick formule vir die berekening van die gemiddelde ouderdom van 'n maatskappy se vaste bates kan beïnvloed. Hierdie navorsingsverslag ontwikkel Hall se modelle verder en bewys dat die gemiddelde ouderdom van vaste bates, soos gebruik in die beraming van die vervangingswaarde van 'n maatskappy se vaste bates, net toegepas kan word in toestande van nul inflasie. In periodes van positiewe inflasie word die gemiddelde ouderdom, soos bepaal deur die Cutler en Westwick formule, te laag opgegee, met 'n gevolglike laer skatting van vervangingswaarde. Dit lei daartoe dat die addisionele waardevermindering, soos bepaal vir inflasieboekhoudingsdoeleindes, te laag opgegee word. In hierdie navorsingsverslag word die modelle waarna hierbo verwys is verder ontwikkel ten einde die vereiste instandhoudings- (of VVI-) gedeelte van die investeringsbesluit relatief tot waardevermindering te bepaal. Dit maak dit moontlik om die VKV van maatskappye te modelleer, met sekere modelbeperkings wat veronderstel word, soos konstante inflasie, vaste batevervanging volgens 'n harmonies opgeboude masjienpark, en soortgelyke ekonomiese leeftye vir aile vaste bates. Dit bied egter net 'n mate van insig in die patrone van addisionele waardevermindering wat vir verskillende situasies benodig word en kan nie in die praktyk aangewend word nie, aangesien vergelykbare praktiese situasies nie bestaan nie. Hierdie studie kom dus tot die gevolgtrekking dat die berekening van vervangingskostes vir die toepassing van inflasieboekhouding 'n baie komplekse probleem is. Geen maklike of vinnige model bestaan tans vir die bepaling van die vervangingswaarde van vaste bates en die gevolglike VKV van 'n maatskappy nie. Daar word aanbeveel dat, wanneer die vervangingswaarde van vaste bates bereken word, die gedetailleerde vaste bateregister van die maatskappy geraadpleeg moet word ten einde die unieke investering- en vervangingstrategieë, sowel as die skeiding van die vaste bates op grand van verskillende ekonomiese leeftye, te kan bepaal. Sodra hierdie inligting beskikbaar is, kan unieke modelle vir die maatskappy ontwikkel word op grand van die toepaslike inflasiesyfers.
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Lin, Suzanne Ching-Fang. "Agency costs of free cash flow and the market for corporate control." University of Western Australia. School of Economics and Commerce, 2006. http://theses.library.uwa.edu.au/adt-WU2006.0042.

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[Truncated thesis] This thesis investigates the relevance of Jensen’s (1986) free cash flow theory to the market for corporate control in Australia. Jensen posits that firms generating cash in excess of that required to fund positive NPV projects face greater agency problems as the free cash flow exacerbates the conflict of interest between shareholders and managers. One implication from Jensen’s free cash flow theory is that firms with high levels of free cash flow are more likely to initiate takeovers that are value-decreasing. There are two practical issues in testing Jensen’s theory; first, constructing an appropriate proxy for free cash flow and secondly, identifying firms with free cash flow. These issues are addressed directly in the first of the two essays that comprise this thesis. The first essay develops and assesses the merits of four operational measures for free cash. One of them is a stock measure while the others are flow measures. The stock measure is included because previous studies have mostly used the stock measure of cash when identifying firms rich in free cash (henceforth, cash rich firms), despite that Jensen (1986) has made explicit reference to free cash flow. We test the validity of this approach by investigating whether stock measures of free cash coincide with flow measures. Our results reveal that the stock and flow measures of free cash give rise to quite different lists of cash rich firms. This is an important empirical contribution of the thesis. Given the lack of definitive criteria for deciding which operational measure of free cash flow is most appropriate, we identify multiple sets of free cash flow firms based on the different operational measures developed. For each operational definition, two methods are used to identify cash rich firms. The first method defines a firm as cash rich if its cash variable ranks in the tenth percentile. The second method defines firms as cash rich if their cash variable value is greater than one and a half standard deviations of the value predicted by a model.
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Van, Eeden Johannes Gerhardus. "An in-depth literary study of Tobin's Q ratio, free cash flow and the relationship that exists between Q and free cash flow." Thesis, Stellenbosch : University of Stellenbosch, 2009. http://hdl.handle.net/10019.1/5047.

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Thesis (MBA (Business Management))--University of Stellenbosch, 2009.
ENGLISH ABSTRACT: Tobin's q value is widely used by financial analysts as a performance indicator ratio. The market value of a firm over the replacement cost of fixed assets and inventory serves as an indication of whether value is created by investing internally in the firm, or whether value is destroyed by investing in negative net present value projects. Where Tobin's q is greater than one (q > 1), the market value of the firm is greater than what it would cost to replace fixed assets and inventory. Therefore value is created. Firms that have a Tobin's q value of less than one are advised to pay dividends rather than invest in negative net present value projects. Over 200 different methods exist of calculating Tobin's q. By increasing the complexity of the algorithm to determine q, very little is achieved to improve the measurement quality. A strong link exists between excess market returns, free cash flow spending announcements and Tobin's q value for the firm. Firms with a high Tobin's q value should ensure that good investment possibilities are pursued. The use of internal funds to fund new investment is viewed in a positive light by the market and above average returns are generated. Firms with a high Tobin's q value and high free cash flow show lower returns. These lower returns happen as a result of the market recognising the firm's failure to capitalise on favourable internal investment opportunities.
AFRIKAANSE OPSOMMING: Tobin se q-waarde word wyd gebruik as prestasie aanwyser deur finansiele ontleders. Die markwaarde van 'n firma gedeel deur die vervangingskoste van vaste bates en voorraad, dien as 'n maatstaf om aan te dui of waarde geskep word deur intern in die firma te belê en of waarde vernietig word deur in projekte met 'n negatiewe netto teenswoordige waarde te belê. Waar Tobin se q-waarde groter is as een (q > 1) is die markwaarde van die firma groter as wat dit sal wees om die vaste bates en voorraad te vervang. Sodoende word waarde geskep. Firmas met 'n q-waarde van minder as een word aanbeveel om eeeder dividende uit te betaal as om die beskikbare fondse in projekte met 'n negatiewe netto teenswoordige waarde te investeer. Meer as 200 verskillende metodes bestaan om Tobin se q-waarde te bereken. Deur die kompleksiteit van die algoritme te vergroot om q te bereken, dra min by tot groter akkuraatheid van die meting. 'n Sterk verband bestaan tussen bo-gemiddelde markopbrengste, aankondigings oor die besteding van vrye kontantvloei en die Tobin q-waarde van die firma. Firmas met 'n hoë Tobin q-waarde moet verseker dat goeie investeringsgeleenthede aangegryp word. Die gebruik van interne fondse om nuwe investering te finansier word deur die mark in 'n positiewe lig beskou en bogemiddelde opbrengste word gelewer. Firmas met 'n hoë Tobin q-waarde en hoë vrye kontantvloei toon laer opbrengste. Hierdie laer opbrengste is as gevolg van die mark wat besef dat die firma nalaat om gunstige interne investeringsgeleenthede te gebruik.
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Ankude, Edem Komla. "Agency costs of free cash flow : the South African experience." Master's thesis, University of Cape Town, 1997. http://hdl.handle.net/11427/9518.

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Includes bibliography.
The use of free cash flow has been a source of conflict between shareholders and managers. This conflict derives from the agency relationship between shareholders and managers in that decisions taken by managers (as agents) affect the shareholders (as principals). The decisions of managers may not always be in the interest of shareholders. The interests of shareholders will be served if actions of managers lead to the maximisation of the total value of the company. The free cash flow theory suggests that managers have the tendency to misuse surplus cash resources. Any use of free cash flow that is not value maximising could result in losses to shareholders. These are termed the agency costs of free cash flow. It is believed that managers will think and act as shareholders if they own significant proportions of the equity capital of companies. This dissertation examines the effects of the agency relationship on the utilisation of free cash flow.
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Rascão, Tiago Miguel Ramos. "Equity research - NOS SGPS, S.A." Master's thesis, Instituto Superior de Economia e Gestão, 2020. http://hdl.handle.net/10400.5/21088.

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Mestrado em Contabilidade, Fiscalidade e Finanças Empresariais
O Equity Research realizado no âmbito do mestrado de Contabilidade, Fiscalidade e Finanças Empresariais do Instituto Superior de Economia e Gestão (ISEG - Universidade de Lisboa) tem como objetivo avaliar o comportamento das ações da NOS SGPS, SA. Foi efetuado um estudo do setor das telecomunicações que está a desenvolver-se cada vez mais a nível tecnológico, sendo hoje um dos serviços fundamentais para o nosso dia-a-dia. A avaliação foi realizada à data de 31-12-2020. Esta avaliação foi efetuada com a aplicação de dois métodos: Discounted Cash Flow com a abordagem Free Cash Flow to Firm e, como complemento à avaliação, o Método dos Múltiplos. No final do estudo, os resultados demonstram que há uma subvalorização, visto que o preço das ações a 31-12-2019 era de 4,80€ (Euronext Lisbon) e o target price calculado no final deste estudo foi de 6,71€ (FCFF). Embora o resultado obtido no Método dos Múltiplos seja contrário, isto representa um upside potencial de 39,83%, sendo a recomendação final, sugerida aos investidores, de compra de ações da NOS.
The Equity Research carried out as part of the master's degree in Accounting, Taxation and Corporate Finance at the Instituto Superior de Economia e Gestão (ISEG - University of Lisbon) aims to evaluate the behaviour of NOS SGPS, SA shares. We analysed the telecommunications sector, which is developing more and more at a technological level, being today one of the fundamental services for our daily life. The evaluation was computed out on 31-12-2020. This evaluation was performed with the application of two methods: Discounted Cash Flow with the Free Cash Flow to Firm approach and, as a complement to the evaluation, the Multiples approach. At the end of the study, the results show that there is an undervaluation, as the share price on 31-12-2019 was 4.80€ (Euronext Lisbon) and the target price calculated at the end of this study was 6,71€ (FCFF). Although the result obtained in the Multiples method is the opposite, this represents a potential upside of 39,83%, with the final recommendation, suggested to investors, to buy NOS shares.
info:eu-repo/semantics/publishedVersion
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Huayhuacuri, Rojas Sonia Cleofe, and Zúñiga Brenda Paola Navarrete. "Métodos de Valorización para Empresas Financieras." Bachelor's thesis, Universidad Peruana de Ciencias Aplicadas (UPC), 2020. http://hdl.handle.net/10757/652071.

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El propósito de la investigación ha sido desarrollar las metodologías correspondientes a la valoración de organizaciones empresariales de tipo financiero, debido a que no existe un método definido para valorar a este tipo de instituciones. En el mercado existe una gran variedad de métodos de valoración, algunos de ellos no libres de dificultades en su aplicación práctica. Sin embargo, hay métodos que pueden ser adecuados para valorar a las entidades del sistema financiero, como el Flujo de caja para el accionista (Free Cash Flow Equity), que representa el valor de las acciones; y el Método de flujo de dividendos descontados (DDM por sus siglas en inglés: Dividen Discount Model), que es el precio de la acción de una compañía en función de los dividendos que va a repartir en el futuro; también se analiza el método de descuento de flujos, que literalmente es una de las metodologías menos complicadas; y, finalmente el método de Valorización de Utilidades Retenidas. Estos métodos de valoración permiten al inversionista estimar el valor; y, de esa manera, tomar una adecuada decisión de inversión.
The purpose of the research is to develop the methodologies corresponding to the valuation of business organizations of a financial type, because there is no established method for valuing this type of institutions. In the market there is a wide variety of valuation methods, some of them not free of difficulties in their practical application. However, there are methods that may be suitable for valuing the entities of the financial system, such as the Free Cash Flow Equity, which represents the value of the shares; and the Discounted Dividend Flow Method (DDM), which is the price of a company's stock based on the dividends it will distribute in the future; The flow discount method is also analyzed, which is literally one of the least complicated methodologies; and, finally, the method of Valorization of Retained Utilities. These valuation methods allow the investor to estimate the value; and, in that way, make an appropriate investment decision.
Trabajo de Suficiencia Profesional
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Brdička, Karel. "Návrh tržního ocenění podniku." Master's thesis, Vysoké učení technické v Brně. Fakulta podnikatelská, 2008. http://www.nusl.cz/ntk/nusl-221958.

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This diploma thesis deals with the company valuation. It contains theoretical background of valuation and description of the most important current methods and attitudes towards determination of market, liquidation and book company value. Subsequently, the theoretical methods are applied on the data of company EUROliftCZ s.r.o. Therefore financial, SWOT and strategic analysis is implemented and future development is forecasted. In concluding part different levels of company value are proposed. The outcome of the thesis is to be used by owners of the company.
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Joynson, Robert John. "The identification, expenditures and performance of free cash flow firms in the UK." Thesis, University of Cambridge, 2006. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.614160.

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Churro, Bruno Alexandre da Silva. "The effect of free cash flow, dividend and leverage on earnings management : european evidence." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/17706.

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Mestrado em Finanças
Este estudo analisa o efeito do fluxo de caixa livre, do dividendo e do endividamento das empresas na Gestão de Resultados em países da Zona Euro, recorrendo a uma amostra de 2.150 observações empresas-ano, de 2009 a 2016, com enfoque nos impactos sentidos nas variáveis de estudo durante a crise financeira de 2008, e consequentemente a sua relação com Gestão de Resultados. A extensão do modelo de Kothari (2005) ao modelo de Jones (1991) é usada para calcular, de forma aproximada, os accruals discricionários, que são assumidos como uma unidade de medida de gestão de resultados. Este estudo documenta evidências de uma relação negativa significativa entre o fluxo de caixa livre e a Gestão de resultados, enquanto as relações dos dividendos e alavancagem com a gestão de resultados são positivas, em termos de direção. Além do exposto, em termos de quantidade, a relação encontrada é inversa à anterior: significativa e positiva em relação ao fluxo de caixa livre e negativa em relação ao endividamento e aos dividendos.
This study analyses the effect of the free cash flow, the dividend and the companies' leverage on Earnings Management in Euro-zone countries, using a sample of around 2.150 firm-year observations, from 2009 to 2016. I also analyze the 2008 financial crisis impacts on this study's measures and, consequently, its relations to earnings management. The Kothari (2005)'s extension to Jones (1991) model is used to compute a discretionary accruals proxy, which is assumed as a measure of earnings management. This study documents evidence of a significant negative relationship between free cash flow and earnings management, while dividend and leverage correlates to earnings management positively, in terms of direction. Furthermore, in terms of amount, the relationship found is inverse to the previous: significant positive in regarding the free cash flow and negative for leverage and dividend paying firms.
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Pacheco, Ana Filipa Romão. "The impact of free cash flow and agency costs on firm’s performance : european evidence." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/17713.

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Abstract:
Mestrado em Finanças
O objetivo deste artigo é investigar como os Free Cash Flows (FCF) e os custos de agência se relacionam e afetam o desempenho da empresa. Em particular, reexaminar a hipótese do FCF e a teoria da agência. Os dados utilizados nesta pesquisa são empresas cotadas em bolsa, da Zona Euro, para o período de 2009-2017. Este estudo contribui para a literatura existente, porque examina a relação entre FCF, custos de agência e desempenho da empresa sob três abordagens diferentes: através da análise da amostra global, do impacto da crise e, finalmente, através de testes de robustez, procurando relações não lineares. Dada a falta de provas para a hipótese do FCF, este artigo defende que as empresas com maior FCF não mostram a presença de comportamentos prejudiciais por parte dos gestores e apresentam melhor desempenho, e a teoria de Pecking Order e o motivo de precaução permanecem válidos na justificação da acumulação de FCF. Ainda, durante uma crise financeira, as empresas com maior nível de liquidez apresentam um aumento no desempenho e valor. Em relação aos custos de agência, as variáveis proxy mostram diferentes efeitos no desempenho da empresa. Assim, este estudo apresenta uma investigação completa que nos oferece uma melhor compreensão da relação entre FCF, custos de agência e o desempenho da empresa.
The purpose of this paper is to investigate how Free Cash Flows (FCF) and agency costs are linked, and how they impact firm's performance. In particular, to revisit the FCF hypothesis and the agency theory. The data used for this research are publicly listed firms, from the Euro Area, for the period of 2009-2017. This study contributes to the existing literature, because it examines the relationship between FCF, agency costs and firm's performance under three different approaches: analysing the overall sample, the impact of the crisis, and finally performing robustness checks, looking for non-linear relationships. Given the lack of evidence for the FCF hypothesis, this paper supports that firms with higher FCF show no presence of managers' shirking behaviour and have better performance, and the Pecking Order theory and the precautionary motive as reasons for hoarding FCF remain valid. Moreover, during a financial crisis, firms with higher level of liquidity still have an increase in performance and firm value. Regarding agency costs, the proxy variables show different effects on firm's performance. So, this study presents a thorough investigation that offers us a better understanding of the relationship between FCF, agency costs and firm's performance.
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Books on the topic "Free cash flow"

1

Christy, George C. Free Cash Flow. New York: John Wiley & Sons, Ltd., 2009.

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Christy, George C. Free Cash Flow. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2009. http://dx.doi.org/10.1002/9781118266847.

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Priest, William W., and Lindsay H. McClelland, eds. Free Cash Flow and Shareholder Yield. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2012. http://dx.doi.org/10.1002/9781119197065.

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Blair, Margaret M. Industry-level indicators of free cash flow. Boston, MA: Boston University, School of Management, 1992.

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Douglas, Alan V. Free cash flow, signalling and the dividend puzzle. Kingston, Ont., Canada: Institute for Economic Research, Queenʼs University, 1990.

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Don, Anderson. Free cash flow theory and voluntary disclosures of funds statements. Glasgow: University of Glasgow, School of Financial Studies, 1988.

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Free cash flow: Seeing through the accounting fog machine to find great stocks. Hoboken, N.J: Wiley, 2009.

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Hall, Brian J. Regulatory free cash flow and the high cost of insurance company failures. Cambridge, MA: National Bureau of Economic Research, 1998.

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Wilson, Stephen A. Waging war on complexity costs: Reshape your cost structure, free up cash flows, and boost productivity by attacking process, product and organizational complexity. New York: McGraw-Hill, 2010.

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Andrei, Perumal, ed. Waging war on complexity costs: Reshape your cost structure, free up cash flows, and boost productivity by attacking process, product and organizational complexity. Chicago: McGraw-Hill, 2010.

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Book chapters on the topic "Free cash flow"

1

Mondello, Enzo. "Free-Cash-Flow-Modelle." In Finance: Angewandte Grundlagen, 233–70. Wiesbaden: Springer Fachmedien Wiesbaden, 2018. http://dx.doi.org/10.1007/978-3-658-21579-8_8.

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Dhumale, Rahul. "Cash Retention Strategies: Test of Free Cash Flow Theory." In Excess Cash Flow, 23–81. London: Palgrave Macmillan UK, 2003. http://dx.doi.org/10.1057/9780230509511_3.

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Corelli, Angelo. "Free-Cash-Flow-Based Methods." In Inside Company Valuation, 29–39. Cham: Springer International Publishing, 2017. http://dx.doi.org/10.1007/978-3-319-53783-2_3.

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Chang, Chun-Ping, Yung-Shun Tsai, Sheena Kaur, and Shyh-Weir Tzang. "Free Cash Flow and Firm Value." In Innovative Mobile and Internet Services in Ubiquitous Computing, 708–16. Cham: Springer International Publishing, 2019. http://dx.doi.org/10.1007/978-3-030-22263-5_67.

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De Luca, Pasquale. "Economic and Financial Dynamic Analysis: Free Cash-Flow to the Firm and Free Cash-Flow to Equity." In Springer Texts in Business and Economics, 143–59. Cham: Springer International Publishing, 2022. http://dx.doi.org/10.1007/978-3-031-18300-3_6.

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Szpulak, Aleksandra. "On the Importance of Free Cash Flow Metrics Bias Resulting from Static Approach to Free Cash Flow Analysis." In The Essence and Measurement of Organizational Efficiency, 281–98. Cham: Springer International Publishing, 2016. http://dx.doi.org/10.1007/978-3-319-21139-8_17.

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Mukherjee, Tarun. "Agency Costs and the Free Cash Flow Hypothesis." In Dividends and Dividend Policy, 145–61. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2011. http://dx.doi.org/10.1002/9781118258408.ch9.

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Vishwanath, S. R. "DCF Valuation Models: Free Cash flow, APV, ECF and CCF valuation models." In Investment Management, 241–60. Berlin, Heidelberg: Springer Berlin Heidelberg, 2009. http://dx.doi.org/10.1007/978-3-540-88802-4_10.

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Lai, Elaine Kok Suit, Ahmed Razman Abdul Latiff, Ooi Chee Keong, and Tong Chue Qun. "The Impact of Free Cash Flow on Firm’s Performance: Evidence from Malaysia." In Eurasian Studies in Business and Economics, 3–16. Cham: Springer International Publishing, 2020. http://dx.doi.org/10.1007/978-3-030-53536-0_1.

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Wu, Lan, Lingli Yu, and Liqin Mao. "Nature of Property Right, Free Cash Flow and Goodwill of M&A." In Proceedings of the Fourteenth International Conference on Management Science and Engineering Management, 197–209. Cham: Springer International Publishing, 2020. http://dx.doi.org/10.1007/978-3-030-49829-0_15.

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Conference papers on the topic "Free cash flow"

1

"Study on Free cash flow, over-investment and cash dividend." In 2019 Asia-Pacific Forum on Economic and Social Development. The Academy of Engineering and Education (AEE), 2019. http://dx.doi.org/10.35532/jsss.v2.025.

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Oktaviani, Marista, and Mochamad Mochklas. "Free Cash Flow, Size, and Earning Management." In 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019). Paris, France: Atlantis Press, 2020. http://dx.doi.org/10.2991/assehr.k.200529.013.

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Shi, Jia, and Ying Gao. "Ownership Concentration, Free Cash Flow and Over-investment." In 2018 5th International Conference on Industrial Economics System and Industrial Security Engineering (IEIS). IEEE, 2018. http://dx.doi.org/10.1109/ieis.2018.8597860.

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Liping Yu and Lijun Li. "Corporate Governance, free cash flow and over-investment." In 2011 International Conference on Business Management and Electronic Information (BMEI). IEEE, 2011. http://dx.doi.org/10.1109/icbmei.2011.5920359.

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Bukit, Rina Br, Sri Mulyani, Fahmi N. Nasution, and Richard Chinomona. "Free Cash Flow, Investment, Capital Structure and Firm Value." In Economics and Business International Conference 2019. SCITEPRESS - Science and Technology Publications, 2019. http://dx.doi.org/10.5220/0009200001220126.

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"Over-investment and Free Cash Flow: Evidence from Thailand." In April 9-10, 2015 Phuket (Thailand). International Centre of Economics, Humanities and Management, 2015. http://dx.doi.org/10.15242/icehm.ed0415019.

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Cao, Xiaoxue, Yihua Zhao, and Xing Rong. "Free Cash Flow, External Audit Quality and Cost Stickiness." In ICEME 2022: 2022 13th International Conference on E-business, Management and Economics. New York, NY, USA: ACM, 2022. http://dx.doi.org/10.1145/3556089.3556167.

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Zhang, Shanshan. "An Empirical Study on Free Cash Flow and Company Performance." In ICIMTECH 21: The Sixth International Conference on Information Management and Technology. New York, NY, USA: ACM, 2021. http://dx.doi.org/10.1145/3465631.3465715.

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Liang, Yong, and Shengdao Gan. "Research on Institutional Investors, Free Cash Flow And Idle Funds." In 2016 2nd International Conference on Education, Social Science, Management and Sports (ICESSMS 2016). Paris, France: Atlantis Press, 2017. http://dx.doi.org/10.2991/icessms-16.2017.11.

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Susanto, Yulius Kurnia, and Elizabeth Bosta. "Free Cash Flow, Firm Characteristic, Corporate Governance on Earnings Management." In International Conference on Entrepreneurship and Business Management (ICEBM) Untar. SCITEPRESS - Science and Technology Publications, 2018. http://dx.doi.org/10.5220/0008487300050010.

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Reports on the topic "Free cash flow"

1

Hall, Brian. Regulatory Free Cash Flow and the High Cost of Insurance Company Failures. Cambridge, MA: National Bureau of Economic Research, December 1998. http://dx.doi.org/10.3386/w6837.

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Rusk, Todd, Ryan Siegel, Linda Larsen, Tim Lindsey, and Brian Deal. Technical and Financial Feasibility Study for Installation of Solar Panels at IDOT-owned Facilities. Illinois Center for Transportation, August 2021. http://dx.doi.org/10.36501/0197-9191/21-024.

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Abstract:
The Smart Energy Design Assistance Center assessed the administrative, technical, and economic aspects of feasibility related to the procurement and installation of photovoltaic solar systems on IDOT-owned buildings and lands. To address administrative feasibility, we explored three main ways in which IDOT could procure solar projects: power purchase agreement (PPA), direct purchase, and land lease development. Of the three methods, PPA and direct purchase are most applicable for IDOT. While solar development is not free of obstacles for IDOT, it is administratively feasible, and regulatory hurdles can be adequately met given suitable planning and implementation. To evaluate IDOT assets for solar feasibility, more than 1,000 IDOT sites were screened and narrowed using spatial analytic tools. A stakeholder feedback process was used to select five case study sites that allowed for a range of solar development types, from large utility-scale projects to small rooftop systems. To evaluate financial feasibility, discussions with developers and datapoints from the literature were used to create financial models. A large solar project request by IDOT can be expected to generate considerable attention from developers and potentially attractive PPA pricing that would generate immediate cash flow savings for IDOT. Procurement partnerships with other state agencies will create opportunities for even larger projects with better pricing. However, in the near term, it may be difficult for IDOT to identify small rooftop or other small on-site solar projects that are financially feasible. This project identified two especially promising solar sites so that IDOT can evaluate other solar site development opportunities in the future. This project also developed a web-based decision-support tool so IDOT can identify potential sites and develop preliminary indications of feasibility. We recommend that IDOT begin the process of developing at least one of their large sites to support solar electric power generation.
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López-Martínez, Samuel Isaí, Jesús Gerardo Sánchez-Valadez, María Andrea Tijerina-Torres, Rodrigo Melendez-Coral, and Javier Jesús Onofre-Castillo. Ultrasonographic Diagnosis of Left-sided Ovarian Torsion in a Twin Pregnancy at 24 weeks: A Case-Report. Science Repository, November 2022. http://dx.doi.org/10.31487/j.crogr.2022.02.01.

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We describe a case report of ovarian torsion in a Korean-speaking woman with a 24-week twin pregnancy who attended a Spanish- and English-speaking institution. Ovarian torsion represents a diagnostic challenge for clinicians and radiologists because of its lack of pathognomonic symptoms and imaging findings. Ultrasonography may show unilateral ovarian enlargement without color Doppler flow and free fluid; however, clinical data should be mandatory for management decisions.
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