Operating Cash Flow Research Articles

The Influence of Accounting Profits, Cash Flow Statements and Company Size on Stock Returns in Manufacturing Companies

This research aims to investigate the impact of several factors on stock returns in manufacturing companies. The research employs a quantitative associative research method and utilizes a multiple regression sampling technique. The sample consists of 15 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2019-2022, totaling 60 data points from annual financial reports. The partial results of the research reveal that accounting profit and operating cash flow do not have a significant impact on stock returns. However, investment cash flow has a significant effect on stock returns, while financing cash flow and company size do not have a significant influence on stock returns. Overall, the research findings indicate that simultaneously, accounting profit, operating cash flow, investment cash flow, financing cash flow, and company size have a significant impact on stock returns in manufacturing companies. This study provides valuable insights into the factors influencing the stock performance of manufacturing companies and can serve as a guide for investors and decision-makers in managing their portfolios

Examining the bonus mechanisms’ role in real earnings management dynamics in an Indonesian manufacturing company

Real Earnings Management (REM) and financial success may have different relationships depending on how managers act. Bonus mechanisms are a significant factor that influences management behavior. The study seeks to examine the impact of bonus systems on the correlation between financial performance and REM practices in manufacturing companies in Indonesia. Moderated Regression Analysis (MRA) is employed to evaluate the influence of bonus mechanisms in moderating the association of financial performance on REM. The technique of purposive sampling was used to pick the sample. The study utilized data from manufacturing firms listed on the Indonesian Stock Exchange from 2017 to 2021, including a total of 400 observed data points. The research findings demonstrate that sales growth is the sole factor that significantly influences REM in manufacturing organizations, as indicated by a p-value below 10%. Other financial performance factors, on the other hand, with p-values for each variable above 10%, have not been shown to have a significant impact on REM. These factors include ROA, leverage, operating cash flow, and cash. The findings also demonstrate that, with a p-value for each variable above 10%, the bonus mechanism is a variable that modifies the effect of all financial performance variables on REM.

Analisis Financial Distress pada Perusahaan Tambang Batubara pada Tahun 2016 – 2022 dengan Struktur Modal Sebagai Variabel Intervening

Purpose of this research is to examine whether the coal companies that registered at Indonesian Stock Exchange is under distress condition or notand also to analyze the factors that affecting it. Variables used in this research were Return on Asset (ROA), Current Ratio (CR), Total Asset Turnover (TATO) and Cash Flow Operation and Capital Structure respectively as Intervening Variable. The research concluded using 22 sample of coal companies that registered under Indonesian Stock Exchange. The result of this research yielded that Return on Asset, Current Ratio and Total Asset Turnover affecting Financial Distress. Total Asset Turnover affecting Capital Structure and Total Asset Turnover able to mediate the independent variable and its dependent variable thus and indirectly Current Ratio and Total Asset Turnover affecting Financial Distress through Capital Structure. Keywords: Financial Distress, Capital Structure, ROA, Current Ratio, Total Asset Turnover

Divergences among ESG rating systems: Evidence from financial indexes

<p style="text-align: justify;"><span lang="EN-US" style="font-size: 12pt; font-family: verdana, geneva, sans-serif; color: black;">This paper specifically underscores the disparities among various ESG rating systems in China, highlighting their varied interpretations and emphasis on corporate financial factors. Analyzing data on Chinese listed firms from 2009-2022, we observe that while company size and leverage ratio uniformly correlate with ESG scores across rating agencies such as Bloomberg, Huazheng, Wind, and Hexun, the influence of factors like return on assets, cash flow, company age, and Tobin's Q is markedly inconsistent among these agencies. For instance, while operational cash flow and company age are positively associated with ESG ratings from Bloomberg, Huazheng, and Wind, they hold an inverse relationship with Hexun's ratings. This divergence underscores the unique data collection, weighting, and evaluation methodologies employed by each rating system. The study emphasizes the criticality of comprehending the nuances of each rating agency's approach when interpreting ESG scores and crafting ESG strategies. Moreover, it advocates for integrating insights from multiple rating systems to cater to the diverse expectations of stakeholders.</span></p>

VAT credit refunds and firm productivity: Evidence from China's VAT reform

This study exploits the implementation of the value-added tax (VAT) credit refund policy in China as an exogenous shock to examine the policy's impact on firm productivity. We find that pilot firms' total factor productivity increases significantly following the implementation of the tax reform due to higher operating cash flow, increased innovation incentives, and improved human capital investment in highly educated labor. Further tests show that the effect of the VAT credit refund policy is more pronounced among large firms, manufacturing firms, firms with strong financing constraints, and those located in regions with low levels of marketization and financial development. Our results provide novel evidence regarding the economic benefits of the VAT credit refund policy, and highlight its role in fostering firm productivity and economic growth.

THE INFLUENCE OF OPERATIONAL CASH FLOW, LEVELS OF DEBT, AND FIRM SIZE ON EARNINGS PERSISTENCE (EMPIRICAL STUDY OF PROPERTY AND REAL ESTATE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE, 2019-2021)

This study aims to examine the effect of Operational Cash Flow, Debt Level and Firm Size on Earnings Persistence. The population used in this research is all Property and Real Estate Companies on the Indonesia Stock Exchange (IDX) in 2019-2021. The sample in this study was 36 units using purposive sampling method. Testing the hypothesis in this study using multiple linear regression analysis using SPSS version 26. The results of this study indicate that Operational Cash Flow and Firm Size have a significant positive effect on earnings persistence, while the level of debt has no significant effect on earnings persistence and. Operational Cash Flow, Debt Level and Firm S simultaneously have a significant effect on earnings persistence.
 
 Keywords: Earning Persistence, Operating Cash Flow, Debt Level and Firm Size

Enterprise innovation and audit pricing: An evidence study from China's A-share listed companies.

Driven by innovation strategy, Chinese enterprises' innovation investment, and research and development capability have been continuously improved, and the audit risk caused by this has attracted widespread attention from the academic community. This study takes China's A-share listed companies from 2013 to 2021 as samples to empirically test the relationship between innovation input and audit pricing of Chinese enterprises. Research shows that the higher the innovation investment, the higher the audit cost. High-quality corporate governance, sufficient research and development personnel, research and development subsidies, and operating cash flow can all play a negative moderating role. A good innovation environment will weaken the positive influence between innovation input and audit fees. This study theoretically confirms the risk-oriented audit pricing mechanism, which is of great significance for optimizing enterprise innovation risk management and improving audit service levels.

Analisis Prediksi Praktik Shenanigans Pada Laporan Keuangan

This study aims to show directly how changes in receivables, revenue manipulation and audit committee effectiveness impact operational cash flow in publicly traded state-owned companies listed on the Indonesia Stock Exchange from 2020-2022. To understand the correlation between independent and dependent variables, this research uses quantitative methods. This study uses secondary data in the form of financial reports of publicly traded state-owned companies listed on the IDX in the 2020-2022 period by applying a purposive sampling method. There are 16 companies that can meet the criteria, resulting in a sample size of 46 data. The results of this research prove that the change in receivables variable has a negative and significant effect on operational cash flow. Meanwhile, income manipulation has a positive and significant effect on operational cash flow, and audit committee effectiveness has a positive and significant effect on operational cash flow.

Manajemen arus kas, ukuran perusahaan, leverage, tahun anomali covid-19 serta kinerja keuangan perusahaan sektor kesehatan di bursa efek indonesia

This research aims to analyze the impact of Cash Flow Management (CFO), Firm Size, Leverage, and the Anomalous Year of COVID-19 on the financial performance (ROE) of health sector companies listed on the Indonesia Stock Exchange during the period 2017-2022. Panel regression method is employed to test hypotheses and analyze these variables. The results reveal that Leverage has a significant negative influence, while Size has a significant positive effect on financial performance. The Anomalous Year of COVID-19 also demonstrates a positive impact on ROE, indicating adaptation and growth within the health sector during the pandemic. Cash flow management (CFO), though not statistically significant, highlights the complexity of the relationship between operational cash flow and financial performance. These findings provide valuable insights for health sector companies in crafting adaptive and sustainable strategies amidst economic dynamics and specific situations such as a pandemic.

FAKTOR – FAKTOR YANG MEMENGARUHI STOCK RETURN PADA PERUSAHAAN MANUFAKTUR

The purpose of this reseach is to provide knowledge that helps investors in determining companies to invest their capital in the form of shares on the Indonesian Stock Exchange. This study also uses calculations in the form of firm size, profitability, liquidity, market, operating cash flow, investing cash flow, financing cash flow, and debt policy so that investors can find out various things the company does in its development. This can be seen from the financial statements that aim to determine investors choices for the company. This research data consists of financial ratios from the financial statements of manufacturing companies for 3 years 2018 to 2020. This study discusses 8 independent variables and also uses a purposive sampling model that is used for sampling and uses 66 companies and a total of 158 company data. Researchers used five sample selection criteria and used multiple regression analysis methods. The results of this indicate that firm size has a negative effect on stock returns, while profitability, liquidity, market, operating cash flow, investing cash flow, financing cash flow and debt policy have no effect on stock returns. Abstract: The purpose of this reseach is to provide knowledge that helps investors in determining companies to invest their capital in the form of shares on the Indonesian Stock Exchange. This study also uses calculations in the form of firm size, profitability, liquidity, market, operating cash flow, investing cash flow, financing cash flow, and debt policy so that investors can find out various things the company does in its development. This can be seen from the financial statements that aim to determine investors choices for the company. This research data consists of financial ratios from the financial statements of manufacturing companies for 3 years 2018 to 2020. This study discusses 8 independent variables and also uses a purposive sampling model that is used for sampling and uses 66 companies and a total of 158 company data. Researchers used five sample selection criteria and used multiple regression analysis methods. The results of this indicate that firm size has a negative effect on stock returns, while profitability, liquidity, market, operating cash flow, investing cash flow, financing cash flow and debt policy have no effect on stock returns. Abstract: The purpose of this reseach is to provide knowledge that helps investors in determining companies to invest their capital in the form of shares on the Indonesian Stock Exchange. This study also uses calculations in the form of firm size, profitability, liquidity, market, operating cash flow, investing cash flow, financing cash flow, and debt policy so that investors can find out various things the company does in its development. This can be seen from the financial statements that aim to determine investors choices for the company. This research data consists of financial ratios from the financial statements of manufacturing companies for 3 years 2018 to 2020. This study discusses 8 independent variables and also uses a purposive sampling model that is used for sampling and uses 66 companies and a total of 158 company data. Researchers used five sample selection criteria and used multiple regression analysis methods. The results of this indicate that firm size has a negative effect on stock returns, while profitability, liquidity, market, operating cash flow, investing cash flow, financing cash flow and debt policy have no effect on stock returns.

Cash Flow Ratios and Business Failure of Healthcare Firms in Nigeria

The study examined cash flow ratios as predictors of business failure of healthcare firms in Nigeria. The objectives of the study were to ascertain the effect of operating cash flow ratio, cash flow to debt ratio, and price to cash flow ratio on Altman’s zeta score of healthcare firms in Nigeria. The study adopted ex-post-facto research design, covering a period of 10 years (from 2013 to 2022). Secondary data used for the study were extracted from annual reports and accounts of selected healthcare firms listed on the Nigeria Exchange Group (NGX) from 2013 to 2022. Multiple regression technique was used to test the hypotheses. The result of the test of hypotheses revealed that the operating cash flow ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.3397). The finding also indicates that the cash flow to debt ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.2937). Lastly, the finding reveals that the price to cash flow ratio has a non-significant positive effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.5281). The policy implications of these findings suggest that when assessing the financial health and bankruptcy risk of healthcare firms in Nigeria, policymakers and regulators should consider factors beyond cash flow ratios. It was recommended therefore that healthcare firms in Nigeria should diversify their sources of cash flow beyond operating cash flow to improve financial stability and mitigate bankruptcy risk. Healthcare firms should have a careful evaluation of debt management practices is necessary to maintain a healthy balance between cash flow generation and debt obligations in healthcare firms. Market sentiment reflected in the price to cash flow ratio should not be relied upon as the sole indicator of financial stability. Healthcare firms should prioritize fundamental financial and operational indicators to assess their financial health and mitigate bankruptcy risk.

Cash flow management, performance and risk: evidence from Greece

PurposeI seek to identify whether cash flow management can affect the performance and risk of the Greek listed companies.Design/methodology/approachThis study examines the relationship of cash flow management with performance and risk, using a sample of 80 non-financial companies listed in the Athens Exchange. The study covers the period 2018–2022, and panel data analysis is applied. Both financial performance and stock return are taken into consideration, while risk concerns the volatility of the companies’ share prices. The various explanatory variables used include the net cash flow, free cash flow, cash conversion cycle days, cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, inventory days, customer days and supplier days.FindingsThe empirical results provide evidence of a positive relationship between financial performance and net cash flow and free cash flow. In addition, operating cash flow is positively related to financial performance. The opposite is the case for investing and financing cash flow. Finally, some evidence of a negative relationship between financial performance and inventory and customer days is provided too. On the other hand, stock return and risk are not related to the cash flow management variables at all.Originality/valueTo the best of my knowledge, this is one of the few studies to examine the relationship of cash flow management with performance and risk, using data from the Greek stock market. The results can form an effective selection tool for investors seeking Greek companies with the highest financial performance potential, which may reward them with higher dividends.

Risk management through financial hedging in inventory systems with stochastic price processes

We consider the financial hedging problem of a firm whose operational cash flow from its inventory operation is affected by both price and demand uncertainties. We assume that selling prices and demand arrival process are governed by an exogenous continuous stochastic price process which is assumed to be correlated with prices of various products in financial markets. During the selling horizon, the firm dynamically invests in a financial portfolio of these products to manage its exposure to price and demand risks by observing the current inventory and price levels. We explore the problem in a minimum-variance framework where we look for the variance-minimizing financial hedge for a given operational policy and a martingale price process. The framework leads to explicit results for the optimal static and dynamic financial hedges in single-period problems with complicated within-period dynamics. We also obtain characterizations of optimal dynamic hedges for multi-period problems using dynamic programming. We explore the risk reduction effects of minimum-variance financial hedges through numerical examples and show that significant risk reductions may be possible by using the right hedge.

Pengaruh Arus Kas Operasi, Profitabilitas, Likuiditas, dan Solvabilitas Terhadap Financial Distress

The Effect of Operating Cash Flow, Profitability, Liquidity, and Solvency on Financial Distress in Transportation and Logistics Sector Companies Listed on the Indonesia Stock Exchange (BEI) for the 2019-2022 period. This research was conducted to determine the effect of operating cash flow, profitability, liquidity and solvency on financial distress. This research uses transportation and logistics sector companies listed on the Indonesia Stock Exchange (BEI) for the 2019-2022 period as the population. This research method uses quantitative methods with data in the form of financial reports available IDX website. The sample was selected using purposive sampling and produced 76 observation data. The data were processed using the SPSS application and analyzed using logistic regression analysis. Based on the results of the analysis conducted, it can be concluded that operating cash flow and liquidity does not have a significant effect on financial distress. Meanwhile, profitability have a negative and significant effect on financial distress and solvency has a positive and significant effect on financial distress.

Analisis Arus Kas Operasi Dan Laba Terhadap Return Saham pada Perusahaan Manufaktur Cigarette

The purpose of this study is to analyze the effect of operating cash flow and profit on the investment results of cigarette manufacturing companies' shares on the Indonesia Stock Exchange 2019–2022. Secondary data were collected as part of quantitative research methodology. Cigarette manufacturing companies listed on the Indonesia Stock Exchange at the time constituted the study population. Purposive sampling is used to select research samples. The Structural Equation Model (SEM) - Partial Least Square (PLS) analysis approach was used in this study, and SmartPLS 3.0 software was used to handle the data. The findings show that operating cash flow has no noticeable impact on stock performance. This result shows that the value of stock investment returns is not significantly affected by the increase in revenue in cigarette manufacturing companies.Cash Flow

Pengaruh Operating Cash Flow, Profitabilitas, dan Leverage terhadap Financial Distress pada Perusahaan Properti dan Real Estate yang Terdaftar di Bursa Efek Indonesia (BEI) Tahun 2018-2022

The objective of this study is to investigate the impact of operating cash flow, profitability, also leverage on financial difficulties among property also real estate firms listed on the Indonesian stock exchange (IDX) from 2018 to 2022. This research employs quantitative methods, utilizing secondary data sources such as annual also financial reports obtained from 47 property also real estate companies during the specified period. The sampling procedure involved purposive sampling, yielding a total of 235 data samples. The research framework adopts multiple linear regression analysis. Findings from this investigation reveal that, individually, operating cash flow also profitability do not significantly influence financial distress, whereas leverage exhibits a detrimental effect. Moreover, collectively, operating cash flow, profitability, also leverage jointly impact financial distress within the realm of property also real estate enterprises listed on the Indonesian stock exchange (IDX) during the 2018-2022 period.

Corporate Governance Moderated Profitability, Liqyidity and Cash Flow on Financial Distress

This study aims to determine the effect of Corporate Governance in moderating Profitability, Liquidity, and Cash Flow on Financial Distress. Net Profit Margin measures profitability. The Current Ratio measures liquidity. The Operating Cash Flow Ratio measures Cash Flow, and Altman Z-score measures Financial Distress. This study uses Corporate Governance as a moderating variable measured by the Board of Commissioners indicator. The sample used in this study is 156 data on manufacturing companies listed on the Indonesia Stock Exchange for 2020-2021. That year, there was an outbreak of the covid-19 pandemic that occurred almost all over the world, allowing many companies to experience financial distress problems. The hypothesis in this study was tested using multiple linear regression. The results showed that profitability had a significant positive effect on financial distress, while liquidity and cash flow had no significant effect on financial distress. Corporate governance as a moderating variable cannot strengthen the influence of Profitability, Liquidity, and Cash Flow on financial distress (Z-Score Index)

The Effect of Operating Cash Flow, Company Size on Tax Avoidance in Consumer Goods Companies Listed on the IDX for the 2019-2021 Period

Tujuan penelitian ini adalah untuk menguji arus kas operasi serta ukuran perusahaan terhadap praktik tax avoidance di perusahaan sektor barang konsumsi sub sektor makanan dan minuman yang terdaftar di Bursa Efek Indonesia Periode 2019-2021. Penelitian ini menggunakan metode kuantitatif dengan data sekunder berupa laporan keuangan perusahaan. Adapun jenis penelitian ini yaitu dengan causal explanatory. Populasi penelitian ini terdiri dari 83 perusahaan. Dalam sektor tersebut dipilih melalui teknik purposive sampling sehingga menghasilkan 32 perusahaan. Analisis data dilakukan dengan menggunakan uji regresi berganda. Hasil penelitian menunjukan bahwa arus kas operasi secara signifikan berpengaruh negatif terhadap praktik tax avoidance. Sedangkan, ukuran perusahaan tidak memiliki pengaruh signifikan terhadap praktik tax avoidance.

Financial Distress: Identifying Influencing Factors and Moderating Dynamics in Manufacturing Companies

In order to adapt to changes in the economy and reduce possible losses, financial distress plays a critical strategic role. Therefore, the purpose of this study is to determine the characteristics that reduce financial distress as well as the factors that moderate it. All manufacturing companies listed on the Indonesia Stock Exchange between 2017 and 2021 are included in this quantitative study. A total of 79 companies were chosen for observation during a five-year period using the purposive sample method, yielding 395 observations. Using Stata software, linear regression and moderated regression analysis (MRA) were used to analyze the data. This study demonstrates that the factors of leverage and ROA each have a significant impact on financial distress. It wasn't demonstrated that operating cash flow significantly affects financial distress, nevertheless. Additional findings revealed that size significantly moderates the association of leverage on financial distress. This study makes a significant contribution to our understanding of the variables that lead to financial distress, particularly in light of the manufacturing sector's poor performance during the COVID-19 pandemic. Furthermore, revealing this moderating influence might benefit investors significantly by enabling them to take business size into consideration when assessing corporate investments.

Pengaruh Rasio Keuangan, Firm Size, dan Cash Flow terhadap Financial Distress

This research aims to obtain empirical evidence regarding the influence of return on assets, current ratio, debt to equity ratio, firm size, total asset turnover, working capital to total asset ratio, and operating cash flow on financial distress. The sample of this research are cyclical and non-cyclical companies listed in Indonesia Stock Exchange between 2020-2022, and regularly issuing financial reports in Indonesian Rupiah. There are 179 companies with 537 data that selected as a final research sample and using a purposive sampling method for data processing. The obtained research results show that the current ratio influence financial distress. Other variables such as return on assets, debt to equity ratio, firm size, total asset turnover, free cash flow, working capital to total asset ratio, and operating cash flow do not influence financial distress.