Cash Balances Research Articles

Analisis keefektifan aplikasi keuangan online sebagai media pengelolaan keuangan di sektor Usaha Mikro Kecil Menengah (UMKM)

Technological developments that have entered the 4.0 era which emphasizes the pattern of the digital economy, artificial intelligence, big data, or known as the disruptive innovation phenomenon, cannot be denied that accounting records are also developing. This form of innovation in the recording model in the form of an online financial application will make it easier for MSME actors to record and find out what the final cash balance is. In this study, online financial applications which include the online financial applications of Bukukas and Buku Warung proved to be very useful in managing and assisting in the form of good financial management of business people, namely in terms of managing income, expenses, accounts payable and financial statements. In addition, it is more effective and efficient in terms of financial management time by using the online financial application.

Cash holdings and real asset liquidity

This paper examines the relationship between the ability of a firm to sell its real assets and its cash holdings behavior. A substitution effect exists between the size of cash balances and the liquidity of a firm’s real assets when access to external capital markets is limited. Among financially constrained firms, higher asset liquidity is related to lower cash holdings. Additionally for financially constrained firms, the market value of cash is lower for firms with higher asset liquidity.

ANALISIS PELAKSANAAN KAS KECIL (PETTY CASH) PADA PT DELI JAYA SAMUDERA

This research is a qualitative descriptive research with data collection methods used are interviews, documentation, and observation. The interview method was carried out by conducting questions and answers with related parties and related to the implementation of petty cash. The documentation method is a data collection technique that is carried out by researching, collecting, and analyzing company documents. The observation method is carried out directly on the company by collecting data related to the implementation of petty cash recording. The results showed that in the implementation of petty cash at PT. Deli Jaya Samudera is carried out using the fixed fund method. However, replenishment of petty cash funds is carried out when the petty cash balance is depleted without waiting until the end of the period to be replenished which is not in accordance with the method used. And in the implementation of petty cash, the company treasurer also holds a petty cash fund which can make the company treasurer work more.

Leverage and Cash Dynamics

Abstract This article documents new and empirically important interactions between cash-balance and leverage dynamics. Cash ratios typically vary widely over extended horizons, with dynamics remarkably similar to (and complementary with) those of capital structure. Leverage and cash dynamics interact approximately as predicted by the internal-versus-external funding regimes in Myers and Majluf (1984, J. Finan. Econ., 13, 187–221.). Leverage is quite volatile when cash ratios are stable and vice-versa, while net-debt ratios are almost always volatile. Most firms increase leverage sharply as cash balances (internal funds) become scarce. Capital structure models that extend Hennessy and Whited (2005, J. Finan., 60, 1129–1165.) to include cash-balance dynamics explain some, but not all, aspects of the observed relation between cash squeezes and leverage increases.

Excess cash holdings and firm performance in new and old economy firms

This study examines the relationship between excess cash holdings and firm performance in new and old economy firms. Firm value increases with cash on hand to a point, but it declines as cash balances exceed an empirically estimated threshold we term “the optimal level”. We find that firms with weak corporate governance mechanisms hold more cash than firms with strong ones. Cash holdings decrease by nearly four percent as bank ownership increases by one percent. New economy firms spend more on research and development activities, and they hold nearly six percent more cash than old economy firms. Results strengthen when we control for year and industry effects.

Україна в інституційному вимірі глобальної конфліктності та стихійної локалізації

It is shown that the institutional environment of global markets was formed under the conditions of technological, financial and political dominance of certain leading countries, which caused today's gap between the integrating capacity of market and structural-institutional mechanisms of the global economy and its actual complexity and potential for conflict. The mechanism for reducing this gap was spontaneous localization as a modern simplification of the structure of the world economy due to massive conflicts and the rejection of a share of cooperative agreements. The contribution to the deterioration of the quality of the institutional environment of the global economy of the process of regeneration of the debt institution is revealed. In the new institutional environment, the demand for liquidity (cash balances) as a function of the motive for foresight takes the twisted form of the demand for inventories, both production and consumer demand, exacerbating the global deficit. The conclusion is substantiated that the global economic power, which is not provided with global resources and value-institutional structures, is a source of uncertainty not only for competitors, but also for itself; the result of its functioning is the deepening of disparities and gaps, which can be partially hidden due to hypertrophied credit. It has been proven that the mutual strengthening of the phenomena of global economic power and hypertrophied credit carries the risk of destroying the social market foundations of economic freedom, trust and justice; this determines the demand for alternative models. It is shown that the criterion for the expediency of alternative models of global development in the conditions of unfolding contradictions between globalization and localization is the ability to more or less stable distribution of powers and responsibilities.

INCOME AND EXPENDITURE BOOKS AS A HISTORICAL SOURCE ON THE SOCIOCULTURAL ACTIVITIES OF THE NUNNERY

The question of the organization of the daily life of nuns often remained on the periphery of humanitarian studies. In this article, we made an attempt to study the income and expenditure books of the Syzran Sretensky Nunnery of the Simbirsk eparchy, and to trace which areas of the monastery’s socio-cultural initiatives are reflected in them. The growth in the number of women’s monasteries and their nuns in the Russian Empire took place in the second half of the 19th century. The abolition of serfdom, lack of land, as well as the desire for ascetic activity contributed to an increase in the number of sisters in the monasteries, who came mainly from the peasant class. But this was a specific, not a mass way of adapting to the new realities of life, chosen by women. With the growing number of monasteries in the empire, there is also an increase in the directions of socio-cultural activities carried out by women’s cloisters. In 1856, the Sretensky community was established in the county center of the Simbirsk province, which was transformed into a convent 2 years later. Enterprising and wise nuns of the Sretensky nunnery, headed by the abbess, used numerous ways and methods of educational, philanthropy, and charitable initiatives, interacting with the urban space. Income and expenditure books were the annual form of the financial report of the monastery, which recorded the monthly deductions of the monastery and the sources of replenishment of its treasury. The treasurer was in charge of the nunnery’s budget. At the end of the report, the cash balance was recorded, which was carried over to the next year and added up with the income amounts. Money was recorded in the report in the form of cash and securities. Total sum taxes and nontaxable sums made up the income items. In the expense items of the Sretensky monastery, one can single out money transfers, which reflected the direction of the social activity of the monastery and the communicative activity of the cloisters with social and cultural facilities, the population, and educational institutions. Thus, an analysis of the structure of income and expenditure books will allow not only to consider the features of the accounting of the Sretensky nunnery, but also to identify various areas of its socio-cultural activities.

Effects of a Simulation on Eighth Grade Students’ Business Management Knowledge and Entrepreneurial Intent in an Exploratory Agriculture Course

Entrepreneurship education has historically been part of agricultural education; yet few researchers have studied entrepreneurship-related outcomes for youth in formal and nonformal educational settings. Entrepreneurship education programs develop entrepreneurial attitudes and intentions, but limited studies exist regarding junior high school youth. This quasi-experimental study utilized a business management simulation with eighth grade students and focused on teaching, learning, and outcomes of entrepreneurship in an exploratory agriculture course. Junior high school students had higher business management knowledge when an educational simulation (playing a board game using double-entry accounting and computing financial statements) was used compared to students who were taught using a board game and tracked a cash balance. Students’ entrepreneurship intent was similar between the control and treatment groups after the two-week unit. However, students who previously completing a 4-H animal science project had higher entrepreneurship intent than their peers who did not complete a 4-H animal science project. This study supports the premise that educational simulations can effectively teach business management skills and offers educators an enhanced understanding of how to capitalize on the value of SAEs and 4-H animal science projects when building entrepreneurial skills in youth.

Innovation Business of Unique Wall Clock as an Effort for Utilizing Cardboard Waste

One of the innovations that can be developed to ‎manage cardboard waste into objects of economic value is to make handicrafts in ‎the form of wall clocks made from cardboard waste. The purpose of this research is to reduce cardboard waste innovatively so that it has a high selling value. In this activity, the method used is a situation survey and ‎the process of making unique wall clocks from collecting cardboard waste to the ‎formation of the final product. This product produces quite promising profits. The sales observation process is carried out for ‎two periods with a cycle per year, sales results are observed based on the cash ‎flow statement, balance sheet, and income statement. Observations show that ‎sales generate increased profits from year to year. This product has a high enough business ‎feasibility to increase people's income. In addition, this product is expected to be ‎able to benefit the environment and society so that environmental pollution can ‎be reduced. However, there is a threat caused by the development of time other ‎innovations from the same raw materials emerge and the trend of wall clocks that ‎are increasingly developing every time can also slow down the development of ‎this business.

Pengaruh Profitabilitas dan Cash Holding terhadap Nilai Perusahaan

The purpose of this study is to examine the effect of profitability and cash holding, either partially or jointly, on firm value in the construction of companies listed on the Indonesia Stock Exchange in 2017-2021. The data analysis method in this study uses multiple linear regression to predict the effect of the independent variables. The population in this study is the construction of the Indonesia Stock Exchange company building in 2017-2021. The results showed that profitability and cash holding did not affect the firm value together. Profitability does not affect the value of the company, which means the company or company shares remain the same as the company's asset value to the profit ratio. This shows that high profits do not lead to an increase in firm value. Cash storage does not affect the value of the company, this shows that companies that have small or large cash balances do not affect the increase in company value. This shows that investors do not see the company's cash holdings in their investments. Investors believe that the company's cash holdings are very vulnerable to being used by company executives.

Cash Balance Management in Innovative Companies

Since the 1980s, innovative companies all over the world have been holding a substantial cash balance on their books dueto transactional, preventive, agency, tax-related and macroeconomic motives and by limitations in capital availability dueto information asymmetry. Our research examines the determinants that influence the analysis of cash holdings of hightechand non-high-tech companies.
 Financial information for 38,386 unique companies was obtained from the 2009–2017 Compustat database. The final sampleversion comprised 12,083 companies, of which 2,909 were innovative. We used the panel regression method, selectingthe appropriate calculation model and a number of proxy variables.
 Our research confirmed the existence of innovative companies’ significant cash holdings. Adding a macroeconomic factorvariable (GDP growth) to the research model was justified for innovative companies only. In spite of the insignificant impactof GDP, increased GDP growth resulted in a decreased cash ratio for innovative companies. The authors also revealthe insignificance of R&D expenditures for innovative companies and prove that ranking companies by the amount ofR&D expenditures and using this variable as innovation proxy was inexpedient. In addition, the authors confirm a positiverelationship between growth opportunities, company size and cash ratio and a negative relationship between dividendpayout and the amount of cash holdings.
 An understanding of the reasons for cash accumulation facilitates prudential management of cash holdings in companies.This paper contributes new evidence to the study of corporate cash holding, focusing specifically on innovative companies,which have not been examined separately in the past.

The generalized cash balance problem: optimization‐based one step ahead optimal control

AbstractThis paper generalizes the Sethi–Thompson model of cash balance dynamics to the case of multiple current and investment accounts, with the cash flows or demands incident on the current accounts. Cash transfers can occur between any pair of current–current or current–investment accounts, with transaction costs proportional to the amount transferred, always deducted from current accounts. Performance indices are defined and maximization of an index for the next instant (day), by suitable choice of cash transfers that satisfy desired constraints on account balances, defines the basic optimal control problem referred to as one step ahead optimal control. It is shown that this one step ahead optimal control can be written as a mixed integer linear program of small size, leading to an implementable real time strategy for the generalized cash balance problem. In addition, for the simple case of a single cash and investment account, the proposed strategy is derived analytically and compared with a strategy of Miller–Orr type, called a three‐level strategy. Omniscient optimal control over a horizon is defined as the globally optimal control strategy, assuming the demands over the entire horizon to be known: although computable a posteriori, it is not implementable a priori, and only serves as a benchmark for comparison. The proposed one step ahead optimal or myopic approach makes no assumptions about the distribution of cash demands, and examples show that it attains performance indices which are superior to those attained by three‐level control strategies, and compare favorably with the omniscient benchmark performance indices.

Selling durables: Financial flexibility for limited cost pass-through

We test whether limited cost pass-through encourages durable goods producers to build financial flexibility. We find that firms with more durable output have larger cash balances and marginal value of cash, lower propensity to pay dividends, and less financial leverage. The link between durable goods and financial flexibility is equally strong in low and zero leverage firms and is reduced in more concentrated industries and when the firm has captive financing activity. Consistent with high demand elasticity driving limited cost pass-through, we find that a large increase in input costs decreases markups and financial slack of durable goods firms in comparison to nondurable goods and services firms.

Implementasi Sistem Informasi Akuntansi Dan Administrasi Berbasis Digital

Villages have the opportunity to develop their potential since the enactment of the Village Law. Optimizing the potential of the village is used for the benefit of the village community. The purpose of optimizing the potential of the village is to improve the lives of the village community. The purpose of establishing Village-Owned Enterprises (BUMDes) is one of the government's efforts to drive the village economy. BUMDes is expected to be a locomotive for the movement of the village economy that can make the village prosperous and reduce poverty. For this goal to be achieved, BUMDes needs to be managed professionally so that they can compete and develop properly. BUMDes Bangun Ber Bersama is a BUMDes in Kepunduhan Village, Tegal Regency. BUMDes Bangun Bersama has the full support of the local village government. BUMDesa Bangun together has limited capabilities of existing human resources. The limitation of existing human resources is the ability in financial reporting operational activities. This Community Partnership Program (PKM) aims to provide financial management methods from manual to systematic and digitalized based on Google Suite. The output of the activities carried out is that BUMDes administrators understand the Bumdes administration system and accounting/bookkeeping and have the ability to make BUMDes Financial Statements in the form of simple accounting, namely making daily cash books, balance sheets, profit and loss reports, and digital-based and systematic capital change reports.

ANALYSIS OF DETERMINANTS OF CORPORATE CASH HOLDING OF LISTED MANUFACTURING COMPANIES ON THE MACEDONIAN STOCK EXCHANGE

In this study, we identify the determinants of cash holding in Macedonian manufacturing companies. The analysis was conducted using accounting data from publicly available financial statements of the sample of Macedonian industrial companies for the 2005 to 2019 period. The research was conducted through the prism of the postulates of the three main theories in corporate finance, i.e., the trade-off theory, pecking order theory,and thefree cash flow theory. To that end, we applied a panel regression analysis, while from the obtained results we assess which theoretical model best explains the cash management in Macedonian companies. We found that the cash to total assets ratio averaged 3.1%. The cash holding decreases with the decrease of the net working capital, financial leverage,cash flow variability, andcash conversion cycle. Cash holding increases with the increase of the company size, cash flow, debt maturity, and capital investments. We concluded that most of the results are in line with the pecking order theory, which indicates that Macedonian companies do not have predefined cash balances, and the cash holdings are abuffer between retained earnings and investments. The level of cash holding is not planned and is not optimized, but is determined during the work processes and depends on other business decisions.

Wharton Global Youth Program Competition Summary and Strategy

<p class="16"><span>This is a report paper submitted for the 2021-2022 Global Youth Program of the Wharton School, and we present our investment strategy here. Among more than 2,000 participating teams, we were around the 150th. Therefore, our strategy and report may be helpful for some analysis and further research. </span><span> </span></p><p class="16" align="justify"><span>As the competition ends, o</span><span>ur return is </span><span>- </span><span>3.10 percent with a cash balance of $33,881.28. As such, the p</span><span>ortfolio </span><span>v</span><span>alue</span><span> is $96,899.39. </span><span>T</span><span>he result is largely unexpected, as </span><span>our revenue stably rose and was higher than the average one of the </span><span>SPDR S&P 500 trust</span><span> in the first two-thirds of the competition. Around Nov 10, we suffered a loss of 4 percent and another significant reduction in the last week because of the outbreak of the omicron variant. Therefore, we do not question our strategy. The following content will explain tactics and details in each industry and demonstrate our understanding of investment tools. </span></p>

Analysis of financial flows in the budget process of Ukraine under the conditions of structural imbalances of the financial system

Adjusting the balanced movement of financial flows in the budget process is a vital component of ensuring the functioning of the financial system. This study aims to identify and outline possible areas for improving the management of financial flows in the budget process of Ukraine to regulate structural imbalances of the financial system. With the help of ranking and clustering, the analysis and assessment of local budgets based on indicators that characterize the movement of financial flows was carried out. The used methods made it possible to consider the differences in the formation and direction of budget flows of territorial communities and determine the progress of administrative-territorial units. An assessment of the state of financial flows consolidated in the treasury single account of Ukraine was conducted: the dynamics of balance, the volume of loans and repayments to local budgets, and the Pension Fund of Ukraine were considered. The assessment results made it possible to determine the directions of setting a stable and balanced movement of financial flows and levers to regulate the impact of structural imbalances of the financial system related to the management of cash balances of the treasury single account and increase of its liquidity. The volumes of revenues, expenditures, deficit, and borrowings to the State Budget of Ukraine were estimated to determine the conditions that cause imbalances in the financial system. The directions for timely and complete execution of the decisions by state authorities and local self-governments are outlined.

Liquidity Requirements, Free‐Riding, and the Implications for Financial Stability Evidence from the Early 1900s

AbstractMaintaining sufficient liquidity in the financial system is vital for its stability. However, since returns on liquid assets are typically low, individual financial institutions may seek to hold fewer such assets, especially if they believe they can rely on other institutions for liquidity support. We examine whether state banks in the early 1900s took advantage of relatively high cash balances maintained by national banks, due to reserve requirements, to hold less cash themselves. We find that state banks did hold less cash in places where both state legal requirements were lower and national banks were more prevalent.

ANALYSIS OF ACCOUNTING INFORMATION SYSTEMS SALES AND CASH RECEIPTS TO IMPROVE INTERNAL CONTROL

Sales accounting information system and cash receipts is one of the sub-systems in accounting information that describes the correct procedures for sales and cash receipts activities. The problem in this study is how to implement a sales information system and cash receipts at PT Sumber Alfaria Trijaya. The type of research used by researchers in the preparation of this study is a qualitative method. The data used in this study is primary data. Data collection procedures are observation, documentation and direct interviews to the object of research. The conclusion of this study is the application of accounting information systems in cash sales and cash receipts at PT Sumber Alfaria Trijaya is still not good, seen from the dual function, namely the delivery function which doubles as a warehouse function and the lack of data and completeness. The analysis of the accounting information system for cash sales and cash receipts on internal control at PT Sumber Alfaria Trijaya is still not good and weak because there are several problems including the existence of multiple functions by the Assistant Head of the store, cash is not directly deposited to the Bank. In the cash function bill, and the amount of cash receipts from cash sales deposited in the bank on the third day not on the day of the transaction. Then there is also no periodic or sudden checking of cash balances by internal control.

THE EVALUATION OF THE INTERNAL APPLICATION SYSTEM OF CASH EXPENSES CONTROL IN DRINKING WATER COMPANY

Accounting, in general, is a system of producing financial information used by users in the business decision-making process. Cash is an object that is often poorly represented because cash is the most valuable of all assets and can be transferred quickly, and everyone needs it. This study aims to determine the effect of the internal control system on cash receipts at drinking water companies. This study uses a qualitative approach. The data is collected through interviews and documentation. The results showed the evaluation of the implementation of the internal control system on cash disbursements in the company. The internal cash control system for cash sales is sufficient for several functions, namely capacity functions, cash functions, accounting features, and the documents used, namely the sales function, cash function, and accounting function. The records used are cash income and inventory cards, internal controls, daily accounting records with accounting features, and cash functions to compare cash balances according to records with their sales. Physical cash, so they happen the same between the two