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1
Sabauri, Levan. "INFLUENCE OF ACCOUNTING BALANCE INDICATORS ON INVESTMENT EVALUTION." Applied Finance and Accounting 2, no. 1 (November 16, 2015): 57. http://dx.doi.org/10.11114/afa.v2i1.1158.
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The work considers essential matters of cash flow return on investments. The basic of CFROI® methodology is the idea of a company as the integrity of projects. Those projects have different moments and terms of development and effect as well as the various rates of payback. Subject to the goals of the analysis, they are represented as a single consolidated project which generates cash flows within the term of useful life of those assets to which the investments are aimed. The CFROI® is based on the main idea – to determine the inflation-adjusted cash flows in favor of every capital owner and to compare them with the inflation-adjusted historical investments which have been put in the business in consideration of the depreciated cost of non-depreciable assets according to the internal rate. The work focuses on the detailed analysis of the CFROI® components. All components are considered separately and in connection with each other that makes the single chain determining the cash rate of return on investments. Within the analysis of cash rate of return on investments it is important to determine the duration of life cycle of strategic investments which is directly related to the establishment of the average age of the fixed depreciated tangible assets. When determining the average asset age noteworthy is by what formula it will be calculated. Based on the practical examples the work presents the cases of “artificial rejuvenation” of depreciated assets and “artificial aging” of assets. The work also determines the values of total investments and total cash flows, their effect on calculation of the cash rate of return on investments. Parallel with investments and cash flows there is also considered the role of IRR and MIRR for calculation of CFROI. Together with the investment model of calculation there has been applied calculation with CFROI coefficient which is based on the use of data of the economical depreciation of total investments. Therefore, the operating cash flows are recurrent and reiterated and they create the necessary idea of the profit to be received from a business in future. CFROI® value is measured on the annual basis. It may be subject to modification. Noteworthy is to determine the internal rate of return (IRR) of a business in the current conditions. CFROI® is of analytical predictable nature. However, it shall be applied with a particular caution. In the final analysis, the purport of the company existence is to return all investments deposited in it and to receive the adequate revenue which will compensate alternative expenses and bring profit to the company.
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Ali, Shahid. "Working Capital Management and the Profitability of the Manufacturing Sector: A Case Study of Pakistan’s Textile Industry." LAHORE JOURNAL OF ECONOMICS 16, no. 2 (July 1, 2011): 141–78. http://dx.doi.org/10.35536/lje.2011.v16.i2.a6.
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This study explores the association between working capital management and the profitability of textile firms in Pakistan. The efficiency of working capital management is reflected by three variables: cash conversion efficiency, days operating cycle, and days of working capital. We use return on assets, economic value added, return on equity, and profit margin on sales as proxies for profitability. A balanced panel dataset covering 160 textile firms for the period 2000–05 is analyzed and we estimate an ordinary least squares model and a fixed effect model. Return on assets is found to be significantly and negatively related to average days receivable, positively related to average days in inventory, and significantly and negatively related to average days payable. Also, return on assets has a significant positive correlation with the cash conversion cycle, which would suggest that a longer cash conversion cycle is more profitable in the textiles business. The findings of the regression analysis show that average days in inventory, average days receivable, and average days payable have a significant economic impact on return on assets. The findings of the fixed effect model reveal that average days in inventory and average days receivable both have a significant impact on return on assets.
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D’Souza, Julia, John Jacob, (Deceased), and Barbara Lougee. "Cash Balance Pension Plan Conversions: An Analysis Of Motivations And Pension Costs." Journal of Applied Business Research (JABR) 29, no. 2 (February 13, 2013): 621. http://dx.doi.org/10.19030/jabr.v29i2.7662.
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In recent years, many corporations have replaced their traditional defined benefit (DB) pension plans with cash balance (CB) plans, which share many of the characteristics of defined contribution plans. This study provides empirical evidence on the characteristics of CB converters and the behavior of pension costs and obligations pre- and post-conversion. We find that CB converters are larger than firms that retain traditional DB plans as well as those that terminate DB plans. They are less profitable than the former, but more profitable than the latter. CB conversions are not associated with proxies for greater labor mobility (e.g., firm-specific employee turnover rate). They are associated with a workforce that is closer to retirement, on average, lending credence to the breach of implicit contract rather than the labor market hypothesis as a motivator of CB conversions. Consistent with this intuition, we document that CB converters recognize a reduction of unrecognized prior service costs in the year of conversion, consistent with a negative plan amendment. Unlike pre-conversion, pension costs and obligations are significantly lower for CB firms post-conversion than for a matched sample of firms retaining traditional DB plans. CB conversions are more popular than DB plan terminations among firms with overfunded pension plans in periods when expected return on plan assets is likely to be high, with a consequent positive effect on reported income.
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Iyer, Subramanian, and Siamak Javadi. "Beyond market timing theory." Studies in Economics and Finance 35, no. 4 (October 1, 2018): 458–80. http://dx.doi.org/10.1108/sef-09-2017-0245.
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PurposeThis study aims to examine the behavior of cash raised through market timing efforts and the success of such efforts in creating value to shareholders.Design/methodology/approachIt is shown that in two quarters, subsequent to raising equity, cash balance of market timers is higher but after that, there is no significant difference between timers and non-timers. Results of speed of adjustment regressions indicate that market timers move faster toward their target cash levels.FindingsMarket timers are small firms that suffer from asymmetric information. They have limited access to capital market, and raising external capital is an opportunity that should be timed. The results suggest that, on average, these firms are managed by more able executives, who are 10 per cent more likely to time the market; however, it is found that timing efforts are unsuccessful in creating value to shareholders even after controlling for the mitigating effect of managerial ability. Subsequent to market timing, on average, market timers earn significantly lower abnormal return over different holding periods relative to their comparable non-timer counterparts.Originality/valueOverall, the results undermine the validity of market timing as a value-maximizing financial policy.
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Bassen, Alexander, Dirk Schiereck, and Christian Thamm. "Activist shareholders and the duration of supervisory board membership: Evidence for the German Aufsichtsra." Corporate Ownership and Control 13, no. 2 (2016): 521–31. http://dx.doi.org/10.22495/cocv13i2c3p3.
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We study the fixed term nature of the German supervisory board appointment hypothesizing that the timing of the upcoming election has an impact on the credibility of effort by activist investors. More credible approaches should consequently be associated with higher wealth effects. An average abnormal return that is up to 6.9 percent higher can be observed when potential activists consider the timing of the next supervisory board election. Capital markets apparently perceive an activist effort within one to two years prior to the election as being most credible. Quite contrary to intuition it seems that high cash positions on targets’ balance sheets have a negative impact on the post-announcement wealth effects.
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Gautam, Kedar Raj. "Structure and Utilization of Receivable of Listed Non- Government Manufacturing Companies in Nepal." Janapriya Journal of Interdisciplinary Studies 2 (August 17, 2017): 65–72. http://dx.doi.org/10.3126/jjis.v2i1.18068.
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When the firm sells goods on credit rather than requiring immediate cash payment such kind of credit sales generate accounts receivable. Especially in small firms, accounts receivable may be factor that decides success or failure. In large firms, efficient accounts receivable management affects the firm’s risk return and share price. The volume of receivable, their composition and management affects the liquidity and profitability. They have, therefore to be managed in such a way that strikes a balance between risk and return. This paper attempts to analyse the structure and utilization of receivable of listed manufacturing companies in Nepal. The emphasis in this study is on manufacturing enterprises because they provide best laboratory for analyzing the structure and utilization of receivable. To analyze the structure and utilization of receivable, ratio analysis is used along with statistical tools such as mean and standard deviation. The analysis shows that there was wide variation in investment in receivable. The average ratio of receivable to current asset ranged between 0.35% to 58%. Similarly, utilization of receivable in terms of average collection period ranged between 1 to 195.8 days representing on average 58.62 days. Janapriya Journal of Interdisciplinary Studies Vol. 2, No.1 (December 2013), Page: 65-72
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Charisma, Bryan, and Encep Amir. "Economic Value-Added Creation by Optimizing Capital Structure in Project Finance." International Journal of Applied Research in Management and Economics 3, no. 2 (December 30, 2020): 46–60. http://dx.doi.org/10.33422/ijarme.v3i2.446.
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Infrastructure Projects are large investment by the public and/or private sector that required enormous financial resource commitment to build physical asset and facilities needed for economic development so that the company need project financing to support with. Project finance is based on debt repayment from project companies’ revenue and not on the sponsors or the developer’s balance sheet, so the project companies should assure the cash flow is sufficient for debt repayment and dividend payment. Beside that investors still have to analyze the value created in that project with highest positive Economic Value Added. Net Operating Profit After Tax (NOPAT) need to cover cost of invested capital to create value so that the ratio of NOPAT to total Project Cost (Return on Invested Capital) is should be more than the weighted average cost of capital (WACC). The capital structure doesn’t have an optimum weight and cost as long as the Return on Invested Capital (ROIC) higher than WACC.
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Liu, Jing, James A. Ohlson, and Weining Zhang. "An Evaluation of Chinese Firms' Profitability: 2005–2013." Accounting Horizons 29, no. 4 (May 1, 2015): 799–828. http://dx.doi.org/10.2308/acch-51154.
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SYNOPSIS We empirically examine the profitability of leading Chinese firms, benchmarked against comparable U.S. firms, for the period 2005–2013. Return on invested capital (ROIC), which excludes leverage effects on performance, provides the primary metric. Averaged over firms and years, the two sets of firms have similar profitability, about 11 percent annually. Decomposing ROIC into free cash flow yield and invested capital growth, we show that the same ROIC has very different compositions: while the Chinese firms have high growth and negative free cash flows, the U.S. firms have low growth and positive free cash flows. Due to balance sheet conservatism, we infer that Chinese (U.S.) firms' free cash flow yields and the resulting ROICs have been biased downward (upward). After correcting for the bias, we show that Chinese firms have much higher profitability than their U.S. counterparts: 15.1 percent versus 8.1 percent. This result is driven by the abundance of growth opportunities in China in our sample period. When we control for the growth rates, we find U.S. firms have been more “efficient” in generating more free cash flows than Chinese firms.
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Custer, A., J. Tatman, and J. Lee. "Concussion Assessment and Return to Sport for a High School, Legally Blind, Female Swimmer." Archives of Clinical Neuropsychology 34, no. 5 (July 2019): 776. http://dx.doi.org/10.1093/arclin/acz026.46.
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Abstract Purpose Limited research exists on treatment of sport concussion in visually impaired individuals. Adaptation to athlete’s needs is vital for individualized sport specific return to play (RTP). Methods Fifteen year-old, visually impaired, female, swimmer presented to an interdisciplinary Sport Concussion Program for protracted recovery with complaints of disequilibrium, headaches, cognitive fatigue, and exacerbation of premorbid resting nystagmus after being kicked in the head during practice. Patient is legally blind due to Peter’s Anomaly and right retinal detachment, with history of migraine, carsickness, and glaucoma. Patient completed two visits with clinical sports neuropsychologist and three vestibular therapy (VT) appointments, assessed via Post-Concussion Symptom Scale (PCSS), Montreal Cognitive Assessment (MoCA-BLIND), Modified Balance Error Scoring System (mBESS), Dizziness Handicap Inventory (DHI), Activities-Specific Balance Confidence scale (ABC), Buffalo Concussion Treadmill Test (BCTT), and Children's Memory Scales (CMS). Differential Diagnosis: Concussion, Post-Concussion Syndrome, Post-Traumatic Headache, Vestibular Dysfunction. Results Initial consult revealed PCSS of 35 and normal MoCA-BLIND (18/22). Patient’s mBESS improved from 7 to 3 errors with VT, DHI mildly elevated (36%), ABC moderately elevated (43%). VT consisted of: neuromuscular re-education, balance training, positional changes, cognitive activity, sport specific RTP progressions (dry land modifications, transitions into water, communication to team athletic trainer). BCTT passed on third VT visit. Patient cleared for RTP with PCSS at 7 and (CMS) Stories, Word Lists, Numbers, and Sequences subtests within expectations (average to high average ranges). Conclusion This case study illustrates an interdisciplinary approach to concussion treatment with modification of established tools and proposal of sport specific RTP guidelines for visually impaired athletes.
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Bellandi, Francesco. "A Brand-New Method of Quantifying Lease Incremental Borrowing Rate under IFRS 16 and Topic 842." International Journal of Business and Management 16, no. 11 (October 20, 2021): 92. http://dx.doi.org/10.5539/ijbm.v16n11p92.
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One of the most contentious issues of lessee’s accounting under IFRS 16 and FASB ASC Topic 842 has been how to compute a lessee’s incremental borrowing rate (hereafter, IBR). A proper quantification of IBR is important because it affects the amount of a lessee’s right-of-use asset and lease liability recognized at lease commencement in the statement of financial position, as well as depreciation and interest expenses ongoing. Such a determination poses theoretical and practical difficulties to companies. This article develops a brand-new method that follows a conceptual approach that converge accounting and finance theory, to strike a balance between rigorous theory and practical application for companies. The proposed approach starts with a lessee’s actual average borrowing rate and compares it with its theoretical average borrowing rate based on synthetic rating. It then flexes the average rate along the interest term curve and derives the monthly rates applicable to each monthly cash flow. It adjusts the rates based on each specific lease features as defined in the standards, periodically updates the specific lease interest rate curves, and computes a lease IBR as the internal rate of return of the cash flows discounted at the monthly specific rates applicable to that specific lease. It finally compares with benchmarks. The proposed model is innovative because it is framed within, and consistent with, the definition of incremental borrowing rate in those accounting pronouncements, uses three starting references cross-checking each other, includes both an internal perspective of a company’s actual interest rates and an external market perspective, and is relatively easy to model in a partially automated spreadsheet application.
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Lee and Choi. "Effect of Balance Taping Using Kinesiology Tape and Cross Taping on Shoulder Impingement Syndrome: A Case Report." Medicina 55, no. 10 (September 26, 2019): 648. http://dx.doi.org/10.3390/medicina55100648.
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Background and objectives: Shoulder impingement syndrome (SIS) is the most common disorder among people with shoulder pain. The purpose of this case report was to investigate the effect of the combined application of balance taping using kinesiology tape and cross taping on a part-time worker with SIS. Case Report: Combined balance taping and cross taping was applied for 3 weeks (average, 16 hours per day) on a part-time worker with severe pain and a limited range of motion (ROM) in the shoulder who had visual analogue scale (VAS) pain scores of 7 and 8 out of 10 for shoulder flexion and abduction, respectively, and pain and disability scores of the Shoulder Pain Disability Index (SPADI) of 37 out of 50 and 29 out of 80, respectively. After the combined application of balance taping and cross taping, the VAS pain scores for shoulder flexion and abduction decreased from 7 to 0 and from 8 to 0, respectively, and the ROM increased to a normal range. The SPADI pain score decreased from 37 to 2, and the disability score decreased from 29 to 1. Shoulder activity level also increased, and the patient was able to return to his part-time job. Conclusions: We suggest combined application of balance taping and cross taping as an effective treatment for part-time workers with SIS.
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Mirmozaffari, Mirpouya, Reza Yazdani, Elham Shadkam, Seyed Mohammad Khalili, Leyla Sadat Tavassoli, and Azam Boskabadi. "A Novel Hybrid Parametric and Non-Parametric Optimisation Model for Average Technical Efficiency Assessment in Public Hospitals during and Post-COVID-19 Pandemic." Bioengineering 9, no. 1 (December 27, 2021): 7. http://dx.doi.org/10.3390/bioengineering9010007.
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The COVID-19 pandemic has had a significant impact on hospitals and healthcare systems around the world. The cost of business disruption combined with lingering COVID-19 costs has placed many public hospitals on a course to insolvency. To quickly return to financial stability, hospitals should implement efficiency measure. An average technical efficiency (ATE) model made up of data envelopment analysis (DEA) and stochastic frontier analysis (SFA) for assessing efficiency in public hospitals during and after the COVID-19 pandemic is offered. The DEA method is a non-parametric method that requires no information other than the input and output quantities. SFA is a parametric method that considers stochastic noise in data and allows statistical testing of hypotheses about production structure and degree of inefficiency. The rationale for using these two competing approaches is to balance each method’s strengths, weaknesses and introduce a novel integrated approach. To show the applicability and efficacy of the proposed hybrid VRS-CRS-SFA (VCS) model, a case study is presented.
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Titova, V. I., L. D. Varlamova, R. N. Rybin, and T. V. Andronova. "The effect of liquid pig manure on the wheat yield, content and balance of nutrients in light-gray forest soil with light particle-size composition." Agricultural Science Euro-North-East 20, no. 5 (October 21, 2019): 456–66. http://dx.doi.org/10.30766/2072-9081.2019.20.5.456-466.
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The research has been carried out under production conditions on light gray forest soils with light particle-size composition at an area of 550 hectares where liquid pig manure (LPM) of a large pig breeding complex is annually used as an organic fertilizer at doses of 60 and 90 t/ha. The average characteristics of LPM are as follows: dry matter content is 9.5%, pH 7.7 units, nitrogen 0.22%, phosphorus 0.11%, and potassium 0.12%. The cultivated grain crops were presented by winter and spring wheat varieties, Moskovskaya 39 and Esther, respectively. It has been established that at the dose of 60 t/ha LPM for two years of research at an average a mean wheat yield was 3.0-3.75 t/ha, and at the dose of 90 t/ha - up to 4.75 t/ha. The return on investments for fertilizers in the “winter wheat → spring wheat” crop rotation link at the dose of 60 t/ha of LPM was 5.41 kg of grain per 1 kg of active substance of manure, at the dose of 90 t/ha - 4.57 kg / kg. A positive balance of nutritional elements developed on all fields, but it was better balanced when the dose of LPM was 60 t/ha and the yield was 3.0 t/ha of grain annually, or when the LPM dose was 90 t/ha and the yield of wheat was 4.75 t/ha. In this case, the estimated potassi-um supply of soil occurs at a lower rate than that of nitrogen and phosphorus. The application of 120 t of LPM during two years in total on loamy sand and of 180 t/ha on light loamy soil provided an increase in the content of mobile phosphorus compounds by 5-22 mg/kg, and potassium - by 11-30 mg/kg with a variation coefficient of 28-57% and 21-49%, respectively.
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Gray, A. V., and Wang Li. "Case study on water quality modelling of Dianchi Lake, Yunnan province, South West China." Water Science and Technology 40, no. 2 (July 1, 1999): 35–43. http://dx.doi.org/10.2166/wst.1999.0080.
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The main aim of this work was to construct and validate a mathematical water quality model of the Dianchi lake, so that by altering input total phosphate (TP) loads the projected changes in the lake water TP concentrations could be estimated. Historical information had indicated deteriorating lake water quality with increasing TP concentrations. The model was based on a simple annual mass balance, relying on 3 years (wet, average and dry) data with all TP loads quantified, 7 years of lake water quality, and 36 years of flow data. All lake processes were considered within a single variable, R. Planning TP removal at STWs and within fertilizer plants, coupled with interventions to reduce non-point TP loads from all land run-off by 50%, suggested future lake water TP concentrations could be stabilised at about 0.3 mg TP/l, i.e. the estimated limit for producing algal concentrations that would cause major problems in water treatment plants. The TP load reductions envisaged as realistic would only stabilise the lake water quality by about the year 2008; interventions, unfortunately, could not return the lake to its former pristine condition. The accuracy of the predictions was ± 0.1 mg TP/1, so collection of better data was needed.
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Zhang, Yuan, Xiaoming Feng, Xiaofeng Wang, and Bojie Fu. "Characterizing drought in terms of changes in the precipitation–runoff relationship: a case study of the Loess Plateau, China." Hydrology and Earth System Sciences 22, no. 3 (March 9, 2018): 1749–66. http://dx.doi.org/10.5194/hess-22-1749-2018.
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Abstract. The frequency and intensity of drought are increasing dramatically with global warming. However, few studies have characterized drought in terms of its impacts on ecosystem services, the mechanisms through which ecosystems support life. As a result, little is known about the implications of increased drought for resource management. This case study characterizes drought by linking climate anomalies with changes in the precipitation–runoff relationship (PRR) on the Loess Plateau of China, a water-limited region where ongoing revegetation makes drought a major concern. We analyzed drought events with drought durations ≥ 5 years and mean annual precipitation anomaly (PA) values ≤ −5 % during drought periods. The results show that continuous precipitation shifts are able to change the water balance of watersheds in water-limited areas, and multi-year drought events cause the PRR to change with a significantly decreasing trend (p < 0.05) compared to other historical records. For the Loess Plateau as a whole, the average runoff ratio decreased from 10 to 6.8 % during 1991–1999. The joint probability and return period gradually increase with increasing of drought duration and severity. The ecosystem service of water yield is easily affected by drought events with durations equal to or greater than 6 years and drought severity values equal to or greater than 0.55 (precipitation ≤ 212 mm). At the same time, multi-year drought events also lead to significant changes in the leaf area index (LAI). Such studies are essential for ecosystem management in water-limited areas.
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Shafti, Tika Al, and Afriyanti Hasanah. "THE IMPACT OF CASH CONVERSION CYCLE EFFIENCY ON OPTIMIZATION OF RETURN ON ASSET ON PROPERTY & REAL ESTATE SUBSECTORS." JOURNAL OF APPLIED MANAGERIAL ACCOUNTING 3, no. 2 (September 30, 2019): 262–72. http://dx.doi.org/10.30871/jama.v3i2.1553.
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This study aims to examine the impact of cash conversion cycle efficiency on optimization of return on assets on property & real estate sub-sector listed in Indonesia Stock Exchange (IDX) period 2013-2016. The cash conversion cycle is proxied by 3 variables: average inventory period, average collection period and average payment period. Sampling method using purposive sampling technique. The data used is cross section data. Data analysis techniques use simple linear regression analysis. The result of research stated that debt repayment period has positive effect to return on asset of company. Cash conversion cycle, inventory turnover period and receivable collection period have no effect on return on asset of the company.
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Evan, Nur, and Aftoni Sutanto. "PENGARUH PENGUMUMAN PERUBAHAN DIVIDEN TERHADAP ABNORMAL RETURN SAHAM DI BURSA EFEK INDONESIA." Jurnal Fokus Manajemen Bisnis 2, no. 2 (September 30, 2012): 61. http://dx.doi.org/10.12928/fokus.v2i2.1319.
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The information about increase and decrease of the cash dividend that it's be dividend by the company is one of information that be considered important enough for investor, because in the information include. The loading information that due to advantage prospect that will get by the company in the next time. It's caused a condition where the investors is met to the high uncertainty of the result of it's investment activity so it's increase and decrease information a cash dividend can be assumed as an indicator for repairing the advantage prospect company in the next time. This research examines information content of cash dividends announcements increase and decrease and the difference of average abnormal return between companies announcing of cash dividend. The result shows that those companies announcing the increase of cash dividends, the is reactive, especially in the t+6 after dividends announcement. It indicate that there is content information on the announcement of cash dividends increase. Mean while those companies announcing the decrease of cash dividends, the market is reactive, especially in the t+9 after announcement of cash dividends. The test of the difference of average abnormal return before and after on the announcement of the increase and the decrease of cash dividends, show that there is no difference between average abnormal return before and after announcement of increase and decrease cash dividends.
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Chen, Xin, and David Simchi-Levi. "A NEW APPROACH FOR THE STOCHASTIC CASH BALANCE PROBLEM WITH FIXED COSTS." Probability in the Engineering and Informational Sciences 23, no. 4 (August 28, 2009): 545–62. http://dx.doi.org/10.1017/s0269964809000242.
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The stochastic cash balance problem is a periodic review inventory problem faced by a firm in which the customer demands might be positive or negative. At the beginning of each time period, the firm may decide to replenish the inventory or return excess stock. Both the ordering cost and the return cost include a fixed component and a variable component. A holding or penalty cost is charged depending on whether the inventory level is positive or negative. The objective of the firm is to find an ordering and return policy so as to minimize the total expected cost over the entire planning horizon. We show how the concept of symmetric K-convexity introduced by Chen and Simchi-Levi [2,3] and the concept of (K, Q)-convexity introduced by Ye and Duenyas [13] can be used to characterize the optimal policy for this problem.
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Sabău-Popa, Claudia Diana, Luminița Rus, Dana Simona Gherai, Codruța Mare, and Ioan Gheorghe Țara. "Study on Companies from the Energy Sector from the Perspective of Performance through the Operating Cash Flow." Energies 14, no. 12 (June 20, 2021): 3667. http://dx.doi.org/10.3390/en14123667.
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In this paper we analyzed the link between companies’ performance, in terms of cash and income, and the labor productivity or management rates, in case of the companies from the energy sector listed on the Bucharest Stock Exchange. We focused on the energy sector because of the impact that its expansion has on the evolution of economies around the world and because of its dynamics in the sense of gradually shifting to the use of energy from renewable sources. We have used panel regression models to analyze the operating cash flow and the profitability rates and the determination of a causal or dependency relationship with labor productivity or management rates. The results of this study show a significant negative correlation between operating cash flows and the average duration of stock rotation, and no correlation between productivity and the operating cash flow. Instead, the average duration of stock turnover does not at all influence the profitability rates, and productivity is always significant for the return on assets, ie forthe return on equitywith a positive coefficient, as expected. The gap between the average duration of payment of suppliers and the average duration of receivables does not significantly influence neither the cash flow nor the rates of return.
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Jasasila, Jasasila. "ANALISIS PERKEMBANGAN LIKUIDITAS DAN RENTABILITAS PADA CV. MENDIHO." Jurnal Ilmiah Universitas Batanghari Jambi 18, no. 1 (February 14, 2018): 51. http://dx.doi.org/10.33087/jiubj.v18i1.432.
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The purpose of this research is to know and analyze the development of Liquidity and Rentability tingat on CV. Mendiho 2012-2016, the analysis used to see the level of Liquidity indicator used: Curent Ratio¸ Quick Ratio and Cash Ratio while for Rentability used indicator: Net Profit Margin, Return on Investment and Return On Equity. From the analysis results obtained that CV. Mendiho is able to meet its short-term liabilities (Liquidity) with the average of each indicator: Curent Ratio 555.46%, Quick Ratio (450.93%) and Cash Ratio (299.94%), which is above average which has been set, although the developments that occur for each indicator is very volatile. For Rentability CV. Mendiho is also able to obtain maximum profitability (Rentability), with each indicator average: Net Profit Margin with average 51.17%, Return On Investment (90.06%) and Return On Equty (544,53 %) and developments for each indicator are also very volatile.Keywords: Liquidity, Profitability
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Javan Shir, Hadi, Seyyed Ebrahim Chatr Sahar, Tahereh Sharfi, and Mostafa Shadkami. "The Relationship between Free Cash Flows and Return on Equity Law." Journal of Management and Accounting Studies 3, no. 02 (July 18, 2019): 1–4. http://dx.doi.org/10.24200/jmas.vol3iss02pp1-4.
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Free cash flows possess special importance for inner and outer organization users. Companies which have high free cash flows, increase their profits by use of commitment items and counteract and balance low profits. Methodology: This order brings improvement of company market value and return on equity law. The aim of this research is the evaluation of information increasing content in free cash flows for efficiency changes description of equity law and company value. For doing this research, a hypothesis is considered: there is meaningful relation between free cash flows and return on equity law. Results: By use of 120 companies data which are research sample member and for a six year temporal period from beginning of financial year 2007 until the end of financial year 2013, research theories had been tested in 5 percent error level which by use of correlation coefficient, correlation level was determined between independent variable with every one of dependent variables and then through relevant p-value, we would specify that is there relationship between dependent or independent variables or not. Conclusion: The recent research findings show that there is meaningful and direct relationship between free cash flows and return on equity law.
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Ahmed, Zobayer. "Rationalizing the Choice of Housing on Cultivable Land: Is Cash-Return the Only Determinant?" Journal of Social and Development Sciences 4, no. 12 (December 31, 2013): 554–64. http://dx.doi.org/10.22610/jsds.v4i12.798.
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Society faces numerous problems due to high population growth where housing along with other settlements is a notable concern. Horizontal expansion of housing on cultivable land in rural area reduces the availability of land for cultivation. The study is a combination of both quantitative and qualitative in nature based on primary data, carried out in a village in Comilla, an eastern district of Bangladesh during April 2012. The study finds that the households receive returns both in cash as well as in kind from new homesteads made on cultivable land. The cash benefit received by households at new place is Tk. 156238.14 on an average per year in 2011 price and on an average the cash investment per year in 2011 price (inflation adjusted) for housing is Tk. 213108.1818 (weighted average). This clearly indicates a cash loss from housing on cultivable land from household’s perspective. However, statistically the cash investment for housing in rural area is not significantly different from the cash return received by the households at 5% level of significance. Thus it becomes an important question whether the household’s choice of making new home on cultivable land is a rational choice or not. Further, the amount of money each household spent for housing could have been used for a higher cash return through some alternative investments. The study reveals, households derive positive utility (non cash returns) from new homes notwithstanding cash loss and other investment options forgone. The study further argues that if the government or any authority is to take some steps regarding the declining trend of cultivable land in rural areas, the perspectives of the households must be considered with great attention.
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Singh, Nidhi. "Effect of Cash Holding Policy of Financially Constrained Firms on Their Market Performance." Management and Labour Studies 43, no. 1-2 (February 2018): 31–45. http://dx.doi.org/10.1177/0258042x17747783.
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Our study is based on the methodology suggested by Faulkender and Wang (2006) in the Indian context, to discuss the various aspects of cash holding policy with respect to financially constrained (FC) and unconstrained firms. Primary goal of the study is to understand shareholders’ perception on the level of cash holdings in constrained and unconstrained firms, and how much value they give to excess cash holdings with respect to cash level and capital structure of a firm. This study also analyzes the shareholders’ perception, which is measured by stock return, and market value of asset, by determining the variation, in excess return and Tobin’s Q over the last 10 years. The result shows less or no effect of excess cash holding either in average firms or in constrained firms. Findings also suggests that shareholders, prefer large firms to maintain excess cash for investment, or to fulfil their liabilities on time. Overall the findings determine the importance of cash level but also indicate the presence of other determinants of the firms, to enhance market return and build shareholders perception.
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Anggria Nur, Shinta, and M. Rimawan. "Pengaruh Perubahan Arus Kas dan Profitabilitas Terhadap Return Saham Pada PT Mayora Indah Tbk." Bahtera Inovasi 4, no. 2 (June 15, 2021): 85–94. http://dx.doi.org/10.31629/bi.v4i2.3348.
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The increase and decrease in cash flow each year shows that the performance of a company is not stable. This is accompanied by the industry average return on investment ratio below 30%, which means that the return on investment is not good. This is because the profit bars obtained decreased drastically in 2014. This study aims to analyze the effect of changes in cash flow and profitability on stock returns at PT Mayora Indah Tbk either partially or simultaneously. This study uses an associative approach. The population of this research is the financial statement data of PT Mayora Indah Tbk for 43 years from 1977 - 2020. The sample of this research is for 12 years from 2009 - 2020. The sampling technique in this study used purposive sampling. The type of data is quantitative research with secondary data sources. The data analysis technique uses the classical assumption test, multiple linear regression analysis, multiple correlation, the coefficient of determination, the T test and the F test using the Statistical Product and Service Solution (SPSS) version 16 program. In this study, operating cash flow, investment cash flow, funding cash flow and return on investment have an effect on stock returns with the magnitude of the effect of 67.1% and the remaining 32.9% is influenced by other factors. Partially, only the investment cash flow variable has a significant effect on stock returns, while the operating cash flow, funding cash flow and return on investment variables have no effect on stock returns. Simultaneously, there is no significant influence on the independent variable operating cash flow, investment cash flow, funding cash flow and return on investment on the dependent variable of stock returns.
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Yusrina, Azyyati, and Puji Sucia Sukmaningrum. "ANALISIS PERBEDAAAN AVERAGE ABNORMAL RETURN DAN TRADING VOLUME ACTIVITY SEBELUM DAN SESUDAH PERISTIWA DIVIDEN TUNAI PADA PERUSAHAAN YANG TERDAFTAR DI JAKARTA ISLAMIC INDEX (JII) PERIODE 2014 – 2017." Jurnal Ekonomi Syariah Teori dan Terapan 6, no. 12 (January 21, 2020): 2512. http://dx.doi.org/10.20473/vol6iss201912pp2512-2526.
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This study aims to find out and explain the market reaction caused by the corporate action announcement in the form of dividend cash made by issuers registered in the Jakarta Islamic Index for the period of 2014 to 2017. The object of research is issuers who carry out activities on the announcement of Cash Devidend in the period of observation that are registered in the Jakarta Islamist Index which has been determined based on certain criteria (purposive sampling). There are 17 issuers with a total of 91 being the research sample. The observation period consists of 60 days estimated period, 10 days before the cume date and 10 days after the cume date. The focus of the research is to see the reaction shown by changes in Average Abnormal Return and Trading Volume Activity by using paired sample t-test for trading volume activity variables and Wilcoxon sign-rank test for abnormal return variables. Processing data using Stata ver statistical tools 14 by setting a significant level of 5%. The results showed that there were significant differences in Average Abnormal Return before and after the announcement and there were no differences in the Trading Volume Activity before and after the announcement.Keywords: event study, cash deviden, Average Abnormal Return, Trading Volume Activity
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Rosenthal, Caitlin. "Balancing the Books: Convergence and Diversity of Accounting in Massachusetts, 1875–1895." Journal of Economic History 80, no. 3 (August 21, 2020): 782–812. http://dx.doi.org/10.1017/s0022050720000388.
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The late nineteenth century is often described as an era of innovation in managerial practice, including accounting. However, despite rich case studies of individual firms, we have little quantitative knowledge of average practices. This paper uses errors and omissions in balance statements to estimate the prevalence of double-entry bookkeeping and depreciation at Massachusetts corporations between 1875–1895. In 1875, 62 percent of firms balanced their returns, but by 1895 this number exceeded 96 percent. The proportion considering depreciation increased from 18 to 24 percent over the period. Firms using these techniques survived longer on average.
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Mulyono, Agung. "Saldo Kas Minimal dan Optimalisasi Kas Pemerintah." Jurnal Manajemen Perbendaharaan 2, no. 2 (December 30, 2021): 105–22. http://dx.doi.org/10.33105/jmp.v2i2.379.
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Cash minimum policy on General State of Cash Account or RKUN is aimed to fulfill cash needed for funding budget execution. That policy has possibility to be changed due to cash optimization purposes and advancement of banking technology. Study intend to increase our understanding about state cash management especially for cash balance on RKUN and explore a discourse in development of optimum cash management on RKUN for managing Government’s cost of fund. This paper uses simple average simulation, Boumol’s model dan Miller-Orr’s model with exploiting daily cash transaction on RKUN for 3 years to derive the form of the optimal cash balance under different assumptions about transaction costs and the demand for funds. Output of all models shows that amount of optimum cash on RKUN in the end of day should be smaller than the amount of cash set by cash minumun policy worth to Rp 2 billion. The result may open further discussion for policy changes on Government cash management.
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Vickson, R. G. "Simple Optimal Policy for Cash Management: The Average Balance Requirement Case." Journal of Financial and Quantitative Analysis 20, no. 3 (September 1985): 353. http://dx.doi.org/10.2307/2331035.
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Fitra, Halkadri, Salma Taqwa, Charoline Cheisviyanny, Abel Tasman, and Nurzi Sebrina. "TINJAUAN STUDI KELAYAKAN USAHA BADAN USAHA MILIK DESA (NAGARI) KAMANG HILIA SEJAHTERA KENAGARIAN KAMANG HILIA, KECAMATAN KAMANG MAGEK, KABUPATEN AGAM, PROVINSI SUMATERA BARAT." UNES Journal of Social And Economics Research 3, no. 2 (December 31, 2018): 160. http://dx.doi.org/10.31933/ujser.3.2.160-169.2018.
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Penelitian ini bertujuan untuk melihat kelayakan aspek keuangan usaha grosir sembako Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera di Kenagarian Kamang Hilia Kecamatan Kamang Magek Kabupaten Agam Provinsi Sumatera Barat yang dilakukan pada tahun 2018. Penelitian bersifat deskriptif kuantitatif dengan menggunakan metode cash flow analysis, payback period, net present value, profitability index, internal rate of return, dan average rate of return. Hasil penelitian menunjukkan bahwa nilai net cash flow Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera adalah positif yaitu Rp.21.774.000, nilai payback period adalah 1,15 tahun, nilai net present value positif sebesar Rp.10.680.034,47, nilai profitability index adalah positif 1,37, sedangkan nilai internal rate of return adalah 46,7% dan nilai average rate of return adalah 57,23%. Berdasarkan standar penilaian maka semua metode yang digunakan memberikan kesimpulan bahwa usaha grosir sembako milik Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera dalam kategori layak untuk dilaksanakan.
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CLARK, ROBERT L., and SYLVESTER J. SCHIEBER. "Adopting cash balance pension plans: implications and issues." Journal of Pension Economics and Finance 3, no. 3 (November 2004): 271–95. http://dx.doi.org/10.1017/s1474747204001738.
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Over the past 15 to 20 years, many companies have converted their traditional defined benefit plans to cash balance or pension equity plans. In a cash balance plan, the worker's ‘account’ is based on an annual contribution rate for each year of employment, plus accumulating interest on annual contributions. A pension equity plan defines the benefit as a percentage of final average earnings for each year of service under the plan. Both types of plans specify the benefit as a lump sum payable at termination. In contrast, traditional defined benefit plans specify benefits in terms of an annuity payable at retirement. From the employees' perspective, cash balance and pension equity plans look somewhat like defined contribution plans. However, they are funded, administered, and regulated as defined benefit plans.
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Samarin, O. D. "Secure and safe heat supply of residenal buildings during transional climac condions." Safety and Reliability of Power Industry 11, no. 2 (July 23, 2018): 149–53. http://dx.doi.org/10.24223/1999-5555-2018-11-2-149-153.
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An elementary arrangement of a heat supply of residential buildings with direct connection to external heating systems is considered, providing reliability of heat supply and comfort required in indoor premises in case of cold snaps after the official closure of the heating season, or before the beginning of the same, by supplying water from the return main of the heating system after the hot water heat exchangers. The basic equations are analyzed relating the heat transfer to the heating system with water temperature in the manifold, the inside air temperature and the characteristics of the heaters, with a review of possible methods of regulating the heat supply near the beginning and the end of the heating period provided taking into account requirements of normative documents of the Russian Federation. Calculations are performed to determine the amount of the main components of the heat balance of a residential building on the example of one of the standard projects used currently in the climatic conditions of Moscow taking into account the constructive structural characteristics of the building and its occupancy level. Analysis of the obtained results and conclusions regarding the appropriateness of the application of this arrangement are provided. It is established that the actual heat output of the heating system when using a chilled water network down-stream the hot water supply heat exchangers as a heat source enables to maintain the safe indoor temperature in the building, with the average daily temperature of outdoor air above +2° C in conditions of moderate amount of heat received with solar radiation. It is shown that the use of this arrangement is virtually not accompanied by additional costs, provides hydraulic resistance of the heating system and gives a system-wide effect in the form of higher electricity generation at thermal consumption when using cogeneration.
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Tsagem, Muhammad Musa, Norhani Aripin, and Rokiah Ishak. "Analyzing the Determinants of Cash Holdings of Small and Medium-Sized Entities in Nigeria." Journal of Accounting and Finance in Emerging Economies 1, no. 1 (June 30, 2015): 31–40. http://dx.doi.org/10.26710/jafee.v1i1.62.
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Purpose: This paper aims to report the results of an empirical investigation on the determinants of the cash holdings for small and medium-sized entities. The paper considers the different explanatory factors of SMEs cash holdings for a sample of Nigerian SMEs. SMEs are springboard of the Nigerian economy contributing to gross domestic product, employment generation and industrialization.
Methodology: the study employed panel data regression analysis using secondary data on a sample of 311 Nigerian SMEs for the period 2007 - 2013.
Result: The finding which is robust of endogeneity shows statistically significant association between cash conversion cycle, account receivables period, return on assets and board size with SMEs cash holdings. Also found a significant relationship between cash holdings with firm size, leverage, growth opportunities and firm age.
Implication: Thus, the result of the study indicates that Nigerian SMEs with shorter cash conversion cycle and low growth opportunities hold more cash. Similarly, SMEs with small board of directors accumulate large cash balance. Further, SMEs with higher profitability keep large cash balance. This study contributes to existing literature on the determinants of SMEs cash holdings more specifically in developing economies. However, this study is limited to non-financial and non-service SMEs. Future study should extend the investigation to financial and services firms. Similarly the structure of the paper and scope of further study may be extended to include the effects of more corporate governance mechanisms.
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Kurtubi, Ahmad, and Udi Pramiudi. "Pengaruh Informasi Arus Kas terhadap Return Saham Perusahaan Studi Kasus Pada Perusahaan Yang Tercatat Di Bei Pada Indeks LQ45." Jurnal Ilmiah Akuntansi Kesatuan 2, no. 1 (July 25, 2018): 047–58. http://dx.doi.org/10.37641/jiakes.v2i1.45.
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The purpose of this study was to determine the cash flow information , stock returns , as well as to determine the effect of cash flow information on stock returns , the company entered in the LQ’45 group , by looking at the share price a week before and a week after the financial statements published. Methods This study uses descriptive method , namely decipher cash flow information and stock returns and cash flow of information influence on stock returns in LQ’45 companies.The results showed the average of total cash flow who increased in LQ’45 Companies group , and stock returns has increased as well , the cash flow of information has influence on stock returns after reporting cash flow published for three consecutive years
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Abata, Matthew Adeolu, and Stephen Oseko Migiro. "Does Liquidity Management Affect Profitability in Selected Nigerian-Quoted Manufacturing Firms?" Journal of Economics and Behavioral Studies 8, no. 4(J) (September 5, 2016): 41–51. http://dx.doi.org/10.22610/jebs.v8i4(j).1362.
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This study examined the nexus between liquidity management and profitability in selected Nigerian-quoted manufacturing firms. Many business failures have been recorded over the years due to inability to balance the link between liquidity and profitability. Descriptive research design was employed to analyze the data gathered from 2004 to 2014. The study found a positive relationship between credit policy, return on equity and return on capital employed. It equally found that operating cash flow and cash conversion cycle are negatively related to all the metrics of profitability. The study therefore recommends among others, that managers should strive to achieve a reasonable level of profit to optimize shareholders’ wealth and keep the firms in business. Also, managers should effectively manage account receivables and inventory at optimal level to avoid tie down liquid assets unnecessarily. Investors should pay close attention to firms’ operational cash flow in order to access their true state before committing their funds.
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Fischer, Mary, Teresa P. Gordon, and Saleha B. Khumawala. "Tax-Exempt Organizations and Nonarticulation: Estimates Are No Substitute for Disclosure of Cash Provided by Operations." Accounting Horizons 22, no. 2 (June 1, 2008): 133–58. http://dx.doi.org/10.2308/acch.2008.22.2.133.
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SYNOPSIS: Not-for-profit entities’ audited financial statements are considered proprietary information, but the World Wide Web provides easy access to financial information from Form 990, the information return filed annually with the Internal Revenue Service. However, Form 990 return does not include potentially useful information for donors, creditors, and regulators such as cash provided by operating activities. Because of articulation of financial statements inherent with the double-entry system, it is theoretically possible to derive operating cash flows from revenues, expenses, and balance sheet accounts that are included on the return. The objective of this study is to determine whether cash from operations can be accurately calculated from Form 990 data. Our analysis includes both simple and more elaborate formulas because complexity may reduce potential usefulness even if accuracy increases. Using 254 observations from two industry groups (higher education and conservation/environmental protection), we compare five formulas. The mean absolute percentage errors of our computations were extremely large for all formulas. Even the formula with the smallest errors produced an amount for cash from operations that was correlated with the actual number for only one of the two industries. The paper also describes articulation problems encountered when a small subsample was examined in more detail. As with similar studies of business entities, it appears that an accurate estimate of cash flow from operating activities cannot be derived from the other financial statements. Therefore, based on the results of this study we recommend that Form 990 should be revised to include selected information from the cash flow statement.
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Mandipa, Garikai, and Athenia Bongani Sibindi. "Financial Performance and Working Capital Management Practices in the Retail Sector: Empirical Evidence from South Africa." Risks 10, no. 3 (March 10, 2022): 63. http://dx.doi.org/10.3390/risks10030063.
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This study examines the relationship between the financial performance and working capital management practices of South African retail firms listed on the Johannesburg Stock Exchange. The study sample comprised a panel of 16 South African retail firms for the period 2010–2019. A fixed-effects estimator was employed in the analysis. The working capital management was proxied by average age of inventory (AAI), average collection period (ACP), average payment period (APP), and cash conversion cycle (CCC), while the financial performance was proxied by net operating profit margin (NOPM), return on assets (ROA), and return on equity (ROE). The key findings of the study documented the following: (1) There is a negative relationship between average collection period and financial performance. (2) A negative relationship between average age of inventory and financial performance measures (NOPM and ROA) was found. (3) The average payment period was found to be negatively related to return on equity. (4) The cash conversion cycle and net operating profit margin variables were found to be negatively related. The study concludes that working capital management practices influenced the financial performance of the South African retail firms. It is recommended that South African retail firms observe prudent optimal working capital management practices, as these influence their financial performance.
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Yarram, Subba Reddy. "Corporate Governance, Cash holdings and Value of a Firm: Evidence from Australian Firms." Information Management and Business Review 4, no. 12 (December 15, 2012): 606–14. http://dx.doi.org/10.22610/imbr.v4i12.1019.
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The present study analyses influence of board structure and cash holdings on the value of Australian firms for the period 2004 to 2010. Australian Stock Exchange (ASX) adopted the Principles of Good Corporate Governance Guidelines in 2003 and Australian firms have started adopting these principles starting 2004. Similarly the reporting framework of Australian firms is harmonized with the rest of the world with adoption of Australian International Financial Reporting Standards (AIFRS) starting in 2004. Corporate cash holdings despite their significance have not been considered extensively in prior literature outside the US. Cash holdings may have significant influence on the value of the firm as too much excess cash may lead to misuse of these funds by entrenched managers. Corporate governance has a role to play in maintaining appropriate cash holdings and their use. The present has two objectives: it considers the influence of corporate cash holdings on the value of Australian firms; and it examines the role of board structure on the relationship between cash holdings and value of the firm. The present study considers all non-financial firms that are part of the All Ordinaries Index (AOI). The present study constructs Fama French 25 portfolio and estimate the excess return as the difference between actual return and the average return of the relevant FF portfolio. OLS analyses show that board independence has no significant impact on the value of the firm though cash holdings have significant influence. Analysing using panel data methods however unearth the significant influence of board independence on the value of Australian firms.
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Iqbal, Javed, Alia Manzoor, Quratulain Akhtar, and Shaheera Amin. "The Effect of Cash Conversion Cycle on Profitability of the firm: A Study of Oil & Gas and Engineering Sector of Pakistan." Journal of Accounting and Finance in Emerging Economies 6, no. 1 (March 31, 2020): 263–72. http://dx.doi.org/10.26710/jafee.v6i1.975.
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The research is aiming at assessing the effect of cash conversion cycle on profitability of the firm. Three components are used to measure cash conversion cycle (CCC); average receivable period (ARP), average inventory period (AIP) and average payable period (APP). Henceforth, cash conversion cycle and its determinants are taken as Independent variables. The dependent variable is profitability being measured by return on asset (ROA). The data was collected with the help of pooled data containing a sample of 10 firms of two manufacturing sector such as Oil & Gas and Engineering, listed on PSX for the period 2010-2018. Regression and correlation techniques were used for analysis and come up with the outcomes that average receivable period and average inventory period have an adverse significant association with profitability of the firm except average payable period. In the end, there exists a highly negative significant association among CCC and firm’s profitability as ROA. The results showed that lesser the no. of days of CCC, the firm has greater profitability. This paper contributes to the literature, which shows the association amongst CCC and ROA.
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Shi, Linna, and Huai Zhang. "On Alternative Measures of Accruals." Accounting Horizons 25, no. 4 (December 1, 2011): 811–36. http://dx.doi.org/10.2308/acch-50050.
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SYNOPSIS This paper investigates the difference between two widely used measures of accruals and their differential impact on accrual strategy returns. The two measures are accruals computed using consecutive changes in the balance sheet items and accruals computed as earnings minus cash flows from operating activities, both from the cash flow statement. Our investigations reveal that the difference between the two measures is caused by four items and non-articulations in changes in working capital accounts and depreciation expenses, in addition to non-articulation events as identified by Hribar and Collins (2002). We find that the non-articulation in working capital accounts and depreciation expenses between the cash flow statement and other financial statements is surprisingly prevalent and economically significant, and it can be attributed to special events, errors made by Compustat, firms' inconsistent definitions, and non-standard classifications of assets/liabilities. We show that, after excluding non-articulation events, the accrual strategy returns are higher for accruals computed using balance sheet items than accruals computed using cash flow statement items. Further investigations suggest that the return differentials are mainly due to other funds from operations and the non-articulation in changes in accounts receivable. JEL Classifications: G12; G14; M41. Data Availability: Data used are available from the sources identified in the study.
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Ogneva, Maria. "Accrual Quality, Realized Returns, and Expected Returns: The Importance of Controlling for Cash Flow Shocks." Accounting Review 87, no. 4 (July 1, 2012): 1415–44. http://dx.doi.org/10.2308/accr-10276.
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ABSTRACT This paper develops a simple methodology based on the earnings response coefficient framework that allows decomposing realized returns into cash flow shocks and returns excluding cash flow shocks. I find that stocks with poor (good) accrual quality were on average subject to relatively lower (higher) cash flow shocks over the past 37 years. These lower (higher) cash flow shocks offset the higher (lower) expected returns of poor (good) accrual quality firms. After excluding cash flow shocks, future realized returns are negatively associated with accrual quality. The premiums pertaining to accrual quality are both statistically and economically significant in standard asset-pricing tests when cash flow shocks are excluded by firm-specific return decomposition. Overall, this paper provides evidence on the existence of a priced accrual quality risk factor, and underscores the importance of controlling for cash flow shocks in asset-pricing tests that use realized returns.
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Samarin, O. D. "Reliable and safe heat supply of residential buildings in transitional conditions with independent connection of the heating system." Safety and Reliability of Power Industry 14, no. 1 (May 4, 2021): 27–33. http://dx.doi.org/10.24223/1999-5555-2021-14-1-27-33.
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The arrangement for heat supply of residential buildings with indirect connection to external heating systems is considered, providing reliability of heat input and required comfort in case of cold snaps after the official end of the heating season or before its beginning by supplying water from the return main of the heating system downstream the hot water supply heat exchangers. The calculations have been made to determine the amount of the main components of heat balance of a residential building on an example of one of standard projects being currently used in the climatic conditions of Moscow, subject to the structural characteristics of the building and its occupancy level. It is established that the actual heat output of the heating system when using the system of chilled water downstream the hot water supply heat exchangers as a heat source enables to main-tain an indoor temperature required for safe living conditions with the average daily outdoor air temperature above +2°C, the heat gain from solar radiation being moderate. It is proven that, tak-ing into account the thermal stability of the enclosing structures, the daily flow rate fluctuations do not significantly affect the stability of the temperature conditions of residential buildings or the comfort of their indoor microclimate at high outdoor air temperatures. It is noted that, in terms of reliability of heat supply of the main group of residential buildings and ensuring the life safety, the proposed arrangement is not inferior to the standard two-stage arrangement of connection of DHW heat exchangers with restriction of the total consumption of delivery water and with the associated regulation of heat supply for DHW, heating and ventilation. It is shown that the use of this arrangement involves virtually no extra costs, provides hydraulic resistance of the heating system and ensures a system-wide effect in the form of higher electricity generation at thermal consumption when using cogeneration.
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Hossain, Tarik. "The effect of working capital management on profitability." International Journal of Research in Business and Social Science (2147- 4478) 9, no. 6 (October 27, 2020): 114–22. http://dx.doi.org/10.20525/ijrbs.v9i6.872.
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This research aims to analyze the impact of efficient working capital management on the profitability of the manufacturing firm in Bangladesh. Fifty-two manufacturing companies listed with Dhaka Stock Exchange (DSE) have been selected randomly from 2012 to 2017. Return on Assets (ROA) and Return on Equity (ROE) are used as indicators of profitability, while the inventory conversion period (ICP), the average collection period (ACP), the average payment period (APP), and the Cash Conversion Cycle (CCC) are used as the independent variables which are used as a measurement of working capital management of the firm. Ordinary Least Squares regression models and Pearson's Correlation are used to establish the relationship between working capital management and profitability. The results revealed a significant negative relation between ROA and CCC, ACP; a significant negative relationship exists between ROE and CCC, APP. Manufacturing companies can increase profitability by decreasing the cash conversion cycle, average payment period, and average collection period. It also revealed that ICP is also positively related to ROA and ROE. Therefore, this research concludes that efficiently and effectively managing working capital is very important for increasing manufacturing companies' profitability.
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Feinberg, Eugene A., and Mark E. Lewis. "Optimality Inequalities for Average Cost Markov Decision Processes and the Stochastic Cash Balance Problem." Mathematics of Operations Research 32, no. 4 (November 2007): 769–83. http://dx.doi.org/10.1287/moor.1070.0269.
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Butt, Adam. "Causes of defined benefit pension scheme funding ratio volatility and average contribution rates." Annals of Actuarial Science 6, no. 1 (October 14, 2011): 76–102. http://dx.doi.org/10.1017/s1748499511000303.
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AbstractSimulations of a model pension scheme are run with stochastic economic and demographic factors, with an aim to investigate the impact of these factors on movements in funding ratio and average contribution rates. These impacts are analysed by running regressions of movements in funding ratio and average contribution rates against the economic and demographic factors. It is found that, for a typical scheme closed to new entrants and a balanced asset allocation including equity investment, the mismatch between discount rate movements and investment returns is by far the biggest predictor of funding ratio movements, with average contribution rates affected more by events in a few individual years rather than averaged over an entire simulation. Where the scheme invests to cash-flow match liabilities, mortality improvement becomes the most significant predictor of funding ratio movements, although mortality improvement still has little impact on average contribution rates.
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Fatima, Nudrat, Muhammad Waqas, Rameez Hassan, Ahmad Fraz, and Muhammad Arif. "Cash to Price Ratio & Stock Returns: Evidence from Emerging Markets." International Journal of Economics and Finance 9, no. 11 (October 23, 2017): 153. http://dx.doi.org/10.5539/ijef.v9n11p153.
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This study examines the impact of size premium and value premium on average return in emerging economies i.e. Pakistan, India and China equity markets for the period from June 2000 to June 2015 by using three factors model. This study predicts the significance and positive relationship between value premium(C/P Ratio) and stock return for all non-financial companies listed on Karachi stock exchange, Bombay stock exchange and Shanghai stock exchange on the basis of market Capitalization. The regression results of the study illustrate that size premium predict returns more for small firms than big firms while market premium found significantly positive with stock returns in Pakistan, India, and China. Value premium is found positive for all created portfolios. Therefore, it can be concluded that value effect is present in three emerging markets. High C/P ratio outperforms the low C/P ratio stocks. In this study C/P ratio (value premium) integrated with size and market premium to check whether it can predict stock returns of small and large firms for high or low C/P ratio. The finding is similar that the positive relationship of value premium and stock return and the negative relationship of size premium and stock return. The explanatory power of Fama and French three-factor model is greater than CAPM for all three equity markets, so, the asset pricing model can facilitate investors in efficient portfolio diversification for getting enhanced returns.
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Kulakov, Nikolay, and Anastasia Blaset Kastro. "Evaluation of Financial Instruments Possessing Non-Conventional Cash Flow." Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438 12, no. 2 (July 2, 2018): 7–17. http://dx.doi.org/10.17323/j.jcfr.2073-0438.12.2.2018.7-17.
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Investments are often justified and accepted based on the IRR as the main criterion of profitability. However, that criterion is hardly ever used to evaluate some financial instruments (e.g. short sales, options, futures and swaps). This is partially due to the fact that some instruments possess a cash flow describing a borrowing rather than an investment. Others have a non-conventional cash flow and, consequently, the IRR may be meaningless or impossible to determine. We describe a non-conventional cash flow of a financial instrument as a non-conventional project consisting of a sequence of single-period (simple) projects. Each simple project has only two cash flows with opposite signs therefore the IRR for the simple project is always determined. If there is a decomposition in which each simple project has the same IRR value, then that value is the IRR of the non-conventional project. If a decomposition of the non-conventional project into simple projects with the same IRR is impossible, the non-conventional project’s IRR does not exist. If a simple project is an investment then the IRR is a rate of return for an investor. If a simple project is a loan then the IRR is an interest rate for the borrower, but not for the investor. Therefore the NPV method estimates a non-conventional project for two different participants simultaneously that leads to problems with definition of IRR. In order the loan’s IRR would be a rate of return for the investor, but not an interest rate for the borrower, the sign of IRR should be replaced to opposite one. The paper discusses how to use the Generalized Net Present Value (GNPV) method to calculate a yield of the financial instrument with non-conventional cash flow. The function GNPV(r, p) depends on two rates: finance and reinvestment ones that determine a cost of funding and a rate of return, respectively. The equation GNPV (r, -r) = 0 is investigated in the paper. The solution of that equation is the Generalized Average Rate of Return (GARR). We suggest using the GARR as a new measure of a yield for evaluating financial instruments possessing a non-conventional cash flow and estimating a portfolio’s performance over period with contributions and withdrawals.
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Pranee, Supattra. "MEASUREMENT DESIGN FOR SME’S BUSINESS PERFORMANCE IN BANGKOK." EUrASEANs: journal on global socio-economic dynamics, no. 3(10) (June 15, 2018): 07–12. http://dx.doi.org/10.35678/2539-5645.3(10).2018.07-12.
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This research study is dedicated to measurement design for SMEs business performance in Bangkok. The objective was to create some sort of a metrics for assessing the performance of SMEs in Bangkok. This is a documentary research since it is using secondary data. Analysis and synthesis methods were used in relation to the obtained information so that to come up with a measurement of business performance for SMEs operating in the city of Bangkok. Our research results found that the innovation management model of SMEs is usually composed of 3 structural elements: 1. Finance, 2. Customers, and 3. Stakeholders. Further, 1. The structural element of Finance is composed of the following indicators: 1). Growth revealed through increased sales, market share, profit growth; 2) Return, namely 2.1) Return on assets, 2.2) Return rate for shareholders, 2.3). Average return on sale, and 3) Cash flow as 3.1) Net cash flow, 3.2) Cash flow from sales, 3.3) Inventory turnover. 2. The structural element called Customer is measured through the following indicators: 2.1) Satisfaction of customers with product delivery meeting Terms and Conditions of agreements, 2.2) Satisfaction of customers with a company as compared to competitors, 2.3) Satisfaction of customers with competitive position this company has already received. 3.The structural element of Stakeholder is measured through the following indicators and their parameters: 3.1) Employees and how they are satisfied with returns, 3.2) Return on investment and returns for shareholders when compared to the previous 3-year period, 3.3) Service quality in its dynamics, 3.4) Number of third parties (distributors) involved and how it increases with every new year, 3.5) Activities’ arrangements as responding to society’s or community’s needs, including company’s environmental responsibility.
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Ficbauer, David, and Mária Režňáková. "Holding Company and Its Performance." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 62, no. 2 (2014): 329–37. http://dx.doi.org/10.11118/actaun201462020329.
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Research projects on the performance of companies search for the relationships between the methods of managing a company and the results. This paper presents a research on holding companies. The aim is to analyse the reasons for and purposes of holding companies being established and the advantages they may bring to the owners trying to find out whether the level of association between the companies influences their performance. The research was carried out in two stages. First a questionnaire enquiry was made with interviews and, subsequently, financial ratios were quantified and their correlation investigated with the extent of efficient cash flow management. The correlation was expressed by Spearman’s rank coefficient. The benefits of creating a holding company were mostly found in the owners’ investment risk diversification, reduction of the capital invested, and improved negotiating position of a holding company. Also, a correlation was determined between the method of cash flow management and financing strategy (measured by net working capital – the value of Spearman’s coefficient is 0.761849 in average and by ratio debt to assets – the value of Spearman’s coefficient is 0.813525 in average), liquidity of companies (measured by cash liquidity the value of Spearman’s coefficient is −0.800436 in average) and performance (measured by return on assets – the value of Spearman’s coefficient is 0.474 in average).
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Wessels, Wessie J. A., Johan Du P. Smith, and Wim R. Gevers. "The association between cash flow variables and market risk on the Johannesburg Stock Exchange: An empirical analysis." South African Journal of Business Management 24, no. 3 (September 30, 1993): 101–8. http://dx.doi.org/10.4102/sajbm.v24i3.870.
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Cash flow from operations can be considered an important indicator of the quality of income of a company. The value of cash flow data was emphasized by Ismail Kim who found that cash-flow-based accounting betas have significant incremental explanatory power over earnings-based betas in explaining the variability in market risk. In this article similar research is reported which was conducted on a sample of companies extracted from the Industrial Section of the Johannesburg Stock Exchange and using the methodology proposed by Ismail Kim. A three year moving average smoothing procedure was also applied to the accounting return variables in order to reduce the effect of short-term influences on the cash flow. Although it was not possible from the research to obtain similar statistically significant results for the South African market (partly because of the relatively small sample size), it was found that the simple linear regression model based on the smoothed cash flow beta did provide significant explanatory power of the variability in market beta.
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Loughran, Tim, and Jay W. Wellman. "New Evidence on the Relation between the Enterprise Multiple and Average Stock Returns." Journal of Financial and Quantitative Analysis 46, no. 6 (June 7, 2011): 1629–50. http://dx.doi.org/10.1017/s0022109011000445.
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AbstractPractitioners increasingly use the enterprise multiple (EM) as a valuation measure. EM is (equity value + debt + preferred stock – cash) / (EBITDA). We document that EM is a strong determinant of stock returns. Following Fama and French (1993) and Chen, Novy-Marx, and Zhang (2010), we create an EM factor that generates a return premium of 5.28% per year. We interpret EM as a proxy for the discount rate. Firms with low EM values appear to have higher discount rates and higher subsequent stock returns than firms with high EM values.