Cash Flow Management Research Articles

ENTREPRENEURSHIP AS AN EFFECTIVE FORM OF DEVELOPMENT INNOVATIVE ACTIVITIES: APPLICATION FEATURES AND IMPLEMENTATION MECHANISMS

In modern business conditions, business entities, in order to remain successful, are forced to respond quickly to challenges and changes in the external environment. As practice shows, internal entrepreneurship is capable of revitalizing business and adapting it to new environmental requirements and threats. It is what makes growth possible by making change acceptable. At the same time, it helps businesses innovate, improve internal productivity, manage cash flow and stay ahead of the competition. Nurturing internal entrepreneurs leads to continuous organizational development. In particular, the involvement, empowerment of employees, job autonomy and the appropriate reward system allow employees to create innovative ideas and use innovative opportunities that strengthen the long-term strategic effectiveness of business entities. Intrapreneurship is extremely human-oriented. In the process of generating and implementing their own ideas, intrapreneurs develop new skills, progress and change. At the same time, they achieve the main goal – they get recognition and a sense of satisfaction. In many ways, intrapreneurship is easier for an individual than entrepreneurship because it has the support of an existing organization. Intrapreneurs use the experience and various resources of the enterprise. At the same time, they fully experience freedom and flexibility in work, do not worry about risks or rewards. It is important for a business entity to stimulate and support the development of intrapreneurship. Otherwise, innovations will not take place regularly and efficiently, and therefore the company risks losing its position in the market. For the successful formation and development of intrapreneurship, the management of the enterprise needs to provide support and stimulation of its introduction. Such support should be carried out regularly, and not be of a one-time nature. At the same time, it should be comprehensive, i.e. provide for the implementation of various measures.

Enhancing production inventory management for imperfect items using fuzzy optimization strategies and Differential Evolution (DE) algorithms

In the complex landscape of production inventory management for manufacturing industries, this research brings to light the significant impact of imperfect items—often an overlooked aspect that can result in elevated costs and operational inefficiencies. Addressing this oversight, we introduce a tailored mathematical model that harmoniously integrates demand forecasting, production planning, quality checks, and inventory control measures, specifically when imperfect items are in play. Notably, our model leverages the power of hybrid intelligent algorithms, fusing fuzzy systems with both genetic and differential evolution (DE) algorithms. Through sensitivity analysis, we discern the intricate effects of varying parameters on system performance. To cater to different operational exigencies, we introduce two distinct decision-making approaches. Our results highlight a promising reduction in anticipated yearly expenses, bolstering the reliability of events and ensuring costs are kept within predefined financial thresholds. Furthermore, we unveil a pioneering hybrid DE algorithm that distinctly outperforms the foundational DE in optimization problem-solving. A side-by-side comparison of our introduced methods elucidates invaluable insights into inventory cash flow management. Practitioners stand to gain immensely from our findings, which pave the way for cost-effective strategies, superior quality control, and an uptick in overall operational efficiency in the face of imperfect items. This seminal work not only offers actionable strategies but also beckons future research opportunities, thereby pushing the frontiers of manufacturing systems.

Cash Flow Management and Firm Performance: Moderating Effect of Corporate Governance Mechanism in the Era of Disruption in Emerging Economy

The moderating effect of corporate governance mechanism on the relationship between cash flow management and performance of listed manufacturing firms in the era of disruption in Nigeria was empirically investigated in this study. Operating, financing, and investing activities were used as proxies for cash flow management. Net assets per share (NAPS) was used to measure firm performance while board independence was used as a proxy for the corporate governance mechanism (moderating variable). Panel least squares regression model operated with E-View 12 was utilized to perform the statistical test of parameter estimates, and six hypotheses were formulated to direct the investigation. Ex Post Facto design was used, and the data for the study was collected from the published annual financial reports and accounts of companies listed on the Nigerian Exchange Group (NGX) under the consumer goods sector, industrial goods sector, and oil and gas sector. The results of the study show that operating activities (OA) significantly affect firm performance (NAPS) at 5% significant level. Furthermore, it was discovered that, at 1% significant level, financing activities (FA) has a positive and significant effect on firm performance, whereas investing activities (FA) has the same effect on firm performance in Nigeria. Also, it was noted that, at 1-5% significant level, corporate governance mechanism (board independence) moderated the effect of cash flow management on firm performance in Nigeria. Thus, the study concludes that in this disruptive era in Nigeria, firms’ performance is determined by their ability to manage their cash flow effectively. Moreover, strong corporate governance practices ensure the success of the company. In light of the study's findings, the study recommends that businesses should review their approaches to managing cash flow so that they can produce enough cash to cover both their operating and investing needs. On the other hand, net cash flow from financing activities ought to be preserved because it has a substantial impact on the financial results of the Nigerian listed companies.

Cashflow Management Practices and the Financial Performance of Five-Star Hotels in Nairobi County, Kenya

Cashflow Management Practices and the Financial Performance of Five-Star Hotels in Nairobi County, Kenya

A STUDY ON WORKING CAPITAL MANAGEMENT” AT MUSASHI, AUTO PARTS INDIA PVT LTD, DODDABALLAPUR

Working capital management is a critical aspect of financial, management for businesses of all sizes and industries. This paper provides an overview, of the concept, of working capital, its components, and its significance in ensuring the smooth operation and financial, stability of a company. The primary objective of working capital management is to strike a balance between the current assets, and current liabilities, confirming that a company has sufficient liquidity to meet its short-term obligations while optimizing its use of resources. This paper delves into the various components of working capital, including cash, accounts receivable, inventory, and accounts payable. It explores strategies, and techniques that businesses can employ to effectively manage these components, such as cash flow, forecasting, inventory control, and credit management. The paper also discusses the role of technology, and financial tools in improving working capital, management processes Keywords: Motaal’s Comprehensive Test , Working Capital , Current Ratio , Working Capital Turnover Ratio , Net profit to Current Assets

Analysis Based on the Importance of Cash Flow Management in Business Management

Analysis Based on the Importance of Cash Flow Management in Business Management

The Influence of Supply Chain Financing on Enterprise Operation Efficiency and Competitiveness

Supply chain financing has become a vital tool for businesses to enhance their operational efficiency and competitiveness in today's dynamic market environment. This research aims to explore the impact of supply chain financing on business efficiency and competitiveness. The study examines how supply chain financing can improve cash flow management, optimize inventory management, and foster collaboration among supply chain partners. By providing timely access to working capital, supply chain financing helps businesses optimize their cash flow, reduce receivables collection time, and minimize the need for costly short-term borrowing. This enhances financial stability and enables companies to meet their financial obligations promptly. Furthermore, supply chain financing offers flexible financing options, such as inventory financing and vendor-managed inventory programs, which enable companies to optimize inventory levels, reduce stockouts, and lower holding costs. This allows businesses to respond quickly to market demands, reduce lead times, and improve overall supply chain efficiency.In addition, supply chain financing platforms facilitate the sharing of financial information and streamline payment processes, enhancing transparency and trust among supply chain partners. This fosters better coordination of production and delivery schedules, reduces supply chain disruptions, and enhances the overall reliability and efficiency of the supply chain.The research methodology includes a comprehensive review of existing literature, case studies, and interviews with industry experts to gather empirical evidence on the impact of supply chain financing on business efficiency and competitiveness. The findings of this research will contribute to a better understanding of the benefits and challenges of supply chain financing and provide insights for businesses seeking to enhance their operational efficiency and competitiveness. Overall, the research highlights the significant role of supply chain financing in improving business efficiency and competitiveness. By leveraging supply chain financing, companies can optimize cash flow, streamline inventory management, and foster collaboration among supply chain partners. This, in turn, enables businesses to respond effectively to market dynamics, gain a competitive edge, and achieve sustainable growth in today's rapidly changing business landscape.

Research on the Application of Suning Cloud Commerce Company's Cash Flow Statement

This article is based on research on cash flow both domestically and internationally, with Suning Yunshang as the cornerstone. The enterprise cash flow management materials introduce the cash flow situation of business, investment, and financing activities, identify some problems in the company, and analyze the corresponding reasons: poor awareness of cash flow management, incomplete comprehensive budget system, and long cash turnover cycle. Propose cash flow management and other optimization solutions to promote the company's development.

Financial Distress, Free Cash Flow, Employee Diff, and Earnings Management

This study examines the effects of financial distress, free cash flow and employee diff on earnings management. Companies that experience financial difficulties and have little free cash flow are predicted to carry out earnings management to hide poor financial performance. Companies that experience an increase in the number of workers which is not followed by an increase in profits are also predicted to carry out earnings management. To test the hypothesis, samples were taken from transportation, infrastructure, hotel, restaurant and tourism sector companies listed on the Indonesia Stock Exchange in 2019-2022. A total of 137 observations were available to test the hypothesis. Testing was carried out using regression analysis with the help of Eviews 12. The results showed that free cash flow has positive effect on earnings management but financial distress and employee diff had no effect on earnings management. The practical implication of the research results is that investors must pay attention to cash flow conditions before using profits as a basis for making investment decisions.

ENHANCING ESG INTEGRATION IN TAKAFUL THROUGH FINANCIAL EDUCATION

The integration of Environmental, Social, and Governance (ESG) factors has emerged as a critical aspect of the Takaful industry, driven by growing social and environmental consciousness among customers. This study investigates the effectiveness of a financial literacy program implemented by a takaful operator in Malaysia, aiming to enhance customers' financial literacy and raise their awareness of ESG considerations. The program provided guidance on individuals’ financial cycles, starting from earning money, cash flow management and budgeting, protection via Takaful products, savings, investment, wealth purification, and estate planning. This research evaluates the programme's impact through surveys and interviews conducted with trainees and assesses its efficacy in improving financial literacy and promoting ESG awareness. The findings demonstrate that the financial education program successfully enhanced financial literacy levels and raised ESG awareness among the target group and the public. The study concludes by highlighting the significance of financial education programs as valuable tools for fostering ESG integration in the Takaful industry and suggests effective techniques for developing such initiatives.

Assessing Audit Quality's Impact on The Connections Between Profit Management and Free Cash Flow

Assessing Audit Quality's Impact on The Connections Between Profit Management and Free Cash Flow

Customer Perception on Bank Selection Criteria in Butwal Sub-Metropolitan City

Banking services are essential to a corporate institution's efficient operation because they enable the safe transfer of funds from one party to another, simplify financial transactions, reduce risk, manage cash flows, and even offer security services to fortify ties between banking institutions, customers, and partners. The unhealthy competition among them makes it challenging to select the finest, though. Using the dependent variable (Bank Selection Criteria) and the independent variables (Convenience, Technology, Bank Charge, and Employee Behavior), this study tries to pinpoint the variables impacting bank selection criteria. The basic random sampling method was used to collect data from 250 bank clients for this investigation. The cross-sectional descriptive study design was used. There have been uses of both descriptive and inferential statistical methods. The findings showed that the bank selection criteria and convenience have a substantial positive correlation. Bank selection criteria are positively marginally influenced by employee behavior and technology. The findings of this study will be helpful to curious consumers, anxious bankers, academics, government officials, and up-and-coming researchers, enabling them to demonstrate greater concern for their clientele in the future. Keywords: Bank Selection, Convenience, Technology, Bank Charge and Employee Behavior

Sustainable Business Model in Small and Medium-Sized Enterprises: A Study in Yogyakarta and Magelang

This study aims to analyze Yogyakarta and Magelang Small and Medium-Sized Enterprises (hereafter) SMEs based on sustainable business model implementation. This study gives new evidence of Yogyakarta and Magelang SMEs’ businesses based on sustainable business model where Indonesian SMEs’ experience the economic crash of Covid-19. This study uses a qualitative descriptive method. Specifically, uses method of qualitative evaluative where this study evaluates SMEs business process by using sustainable business model. Research sample includes 40 SMEs in Yogyakarta and Magelang. Evaluation of SMEs’ business is based on elements of sustainable business model including key partner, key activity, key resources, value proposition, customer relationship, channels, customer segment, cost structure, revenue stream, cash flow management, pivoting plan, and ecological concern. This study uses a “yes and no” questionaries with 13 questions that refers to the elements of sustainable business. Based on the result, this study finds that most SMEs in Yogyakarta and Magelang, implement the elements of a key partner, key activity, key resources, value proposition, customer relationship, channels, cost structure, pivoting plan, and ecological concern. On the other hand, most SMEs do not implement elements of customer segment, revenue stream, and cash flow management. Socialization and special training is needed from various parties related to the implementation of sustainable business models for SMEs.

Optimizing retailer’s order and financing decisions on an e-commercial platform considering cash flow

The mismatch in cash flow often distorts business operational decisions and even lead to bankruptcy for enterprises. This paper investigates the order and financing decisions of a capital constrained retailer who borrows from an e-commerce platform to fund its business operations. The ecommercial platform, which has full capital, provides three financing schemes: (1) lump-sum repayment (scheme L), (2) average capital plus interest repayment (scheme P), and (3) average capital repayment (scheme A). We first model the financing behaviors of the retailer and determine the circumstances in which the retailer favors a specific financing scheme. Then, we propose a viable cash flow matching strategy in which the retailer retains a portion of its initial capital to address potential repayment shortfalls in each period. To the best of our knowledge, this paper is the first to integrate the capital constrained retailer’s cash flow management into the platform financing scheme. The results show that: In the absence of cash flow considerations, the retailer prefers scheme L since selecting scheme P or A may lead to bankruptcy. In contrast, if the cash flow matching is efficiently realized, the retailer always prefers scheme P to enhance its performance. Numerical examples are used to validate the theoretical results.

The Entrepreneurial Intention of Business Students: Applying the Theory of Planned Behavior and Theory of Reasoned Action

The Philippines is an entrepreneurial country, with MSMEs constituting 99.6% of registered businesses, employing 62.80% of the working population. The number of registered businesses in the country is increasing, especially among young entrepreneurs. This study highlights the significance of attitudes, norms, and self-efficacy in shaping entrepreneurial aspirations among the youth in the Philippines. It examines the entrepreneurial intention of graduating students pursuing Accountancy, Management Accounting, and Customs Administration degrees at the Lyceum of the Philippines University-Manila. The research is anchored on the study of Lars Kolveried & Espen Isaksen, which incorporates the Theory of Planned Behavior (TPB) and Theory of Reasoned Action (TRA) to develop hypotheses about attitudes toward entrepreneurship as a career and entrepreneurial intentions. Through Factor Analysis (Principal Axis Factoring), the researchers identified seven (7) factors that predict the intention to be self-employed: one (1) for attitude (Business than Career), two (2) for subjective norm (care about people's opinion and people's opinion), and four (4) for self-efficacy (Risk, Investor, Opportunity, and Economy). The findings suggest that factors such as attitudes toward entrepreneurship, subjective norms, and self-efficacy significantly impact students' intention to pursue self-employment. Notably, students who prioritize business over career, value other people's opinions, and possess greater self-efficacy in areas of risk, investment, opportunity, and the economy are more inclined towards self-employment. Conversely, factors such as extended academic tenure, managing cash flow concerns, and age negatively affect entrepreneurial intentions. Personal circumstances, including relationship status, location, employment status, and scholarships, can also influence students' likelihood of intending to be self-employed. Furthermore, market opportunities, investor relationships, and risk approaches positively influence students' entrepreneurial intentions.

Cash Flow Analysis and Management of Project Portfolio Using Percentile Points

Effective financial and cash flow management are essential elements of an effective project execution plan. For this study, five projects were being executed simultaneously by SOFTSTRUCT CONSULTANTS, a construction company based in Port Harcourt, Nigeria. The company has an overdraft limit of $1,200,000. They are to commence on different dates starting from September 2022 and ending at February 2026. The percentile point (PP) method was used to generate the cash flow analysis and management. It was found that the company arrived at a maximum overdraft of $1,200,000, which was less than the limit. This means the company is on the safe side to succeed with her project portfolio, and likely remain afloat to execute more projects in the future, using this kind of cash flow management technique for all her projects.

Exploration of Cash Flow Management Strategy and Financial Performance of Saccos in Imenti North Sub-County, Kenya

The study sought to explore the influence of cash flow management strategy on financial performance of Saccos in Imenti North Sub-County, Kenya. Descriptive research design was adopted to collect data from 21 deposit and non-deposit Saccos located in Imenti North Sub-County. The target respondents included 42 accounts department officers, 114 tellers, 93 back-office staff, and 120 loan officers hence a total of 369 respondents. Descriptive and inferential statistics were used to analyze the data. Cash flow management strategy had a correlation coefficient r=0.772** at α < 0.000 and a 99% significance level. The study established that the investment department was still undeveloped in many Saccos therefore limiting on the authorization of incorporation of funds in investment options like capital markets. This limited the Saccos to act as mere institutions of accepting deposits and savings, while at the same time issuing loans. This method of operation at many times did not guarantee consistent income due to competition from other financial institutions doing similar work. The study thus recommends that the Board of Management [BOM] should create policies and provide adequate funds to establish an investment department, if there is none, or strengthen it if in existence. The contribution to the study is that a quality policy structure would introduce the Saccos to endless opportunities in investment at capital markets which has a well-structured and managed fund portfolio. In return, this would improve the income since the operations of the Saccos would have been diversified spreading into various classes of investments available.

The Effect of Political Connections and Family Ownership on Operating Cash Flows Management: Empirical Evidence from Egypt

Purpose: This paper aims to investigate the effect of political connections and family ownership Each separately and the interactive effect between them on cash flows management. Design/Methodology/Approach: To analyze the research hypotheses, the author used a panel data model by ordinary least squares' Depending on historical data from 72 active non-financial firms listed on the Egypt Stock Exchange during the period of 2012-2019. The final data set comprises a total 576 firm-year observations from twelve major non-financial industry classifications. Findings: The current study found that there is a Positive impact of family ownership on cash flow management, and there is a positive relationship between political connections and cash flows management while there is a negative relationship between family firms with political connections and cash flows management. Research limitations/Implications: This research is limited to dealing with direct family ownership structures and does not deal with indirect family ownership. Likewise, this research does not deal with the political connections in companies that arise through direct government ownership. Also, this research was limited to using linear regression analysis that did not address nonlinear regression or the structural equation model to examine the effect of family ownership and political connections on cash flows management. Practical implications: Practitioners such as investors and lenders dealing with companies in the Egyptian capital market, which is considered one of the emerging markets with low protection for small investors, benefit from the results of this study due to the impact of family ownership and political connections when making their investment decisions. At the same time, the study helps provide important information about the business environment and conditions. Investing in developing countries like Egypt. Originality/Value: The current study contributes to the literature by showing that different characteristics of companies such as family ownership and political connections can produce different consistent results between an emerging and developed economy, especially in the area of cash flows management. As this is the first study to analyze these relationships in the financial market in Egypt, where the study demonstrates the important role of the impact of political connections and family ownership separately, in addition to the joint effect of political connections and family ownership on cash flows management through empirical evidence.

The Effects of Cash Flow Management on the Financial Performance of Listed Manufacturing Firms in Ghana

The Effects of Cash Flow Management on the Financial Performance of Listed Manufacturing Firms in Ghana

Иностранные инвестиции как важнейший ресурс экономического развития и объект управления

Over the past two decades, the international movement of capital has been a fundamental factor for the creation of foreign economic and political ties, has a significant impact on the economic development of the country, contributes to the growth of production, increased competitiveness, activation of innovation processes, as well as the formation of other important areas. International migration (movement) of capital includes the export, import and functioning of the capital of legal entities and individuals abroad in order to strengthen positions in the foreign economy, profit, and struggle for sales markets. But it is impossible to say about the unambiguously positive impact of foreign investments on the innovative and reproductive functioning of the state, i.e. there is a discussion about their quality and a natural question arises about the management of foreign cash flows in order to create a balance of commercial and social interests of all market participants.