Cash Flow Structure Research Articles

PENGARUH INTELLECTUAL CAPITAL , FREE CASH FLOW, DAN STRUKTUR MODAL TERHADAP KINERJA KEUANGAN

This research aims to determine the effect intellectual capital, free cash flow and capital structure toward the financial perfomance. This research uses 75 samples manufacturing companies listed on the Indonesia Stock Exchange in the year of 2016-2018 using Eviews 10. The results of t test indicate that intellectual capital have a negative unsignificant effect on financial performance. Free cash flow have a negative significant effect on financial performance and capital structure have positive unsignificant effect on financial performance. The results of this research indicate that all independent variables simultaneously have a significant effect on dividend policy (F test).

Risk Management for Bonds with Embedded Options

This paper examines the behavior of the interest rate risk management measures for bonds with embedded options and studies factors it depends on. The contingent option exercise implies that both the pricing and the risk management of bonds requires modelling future interest rates. We use the Ho and Lee (HL) and Black, Derman, and Toy (BDT) consistent interest rate models. In addition, specific interest rate measures that consider the contingent cash-flow structure of these coupon-bearing bonds must be computed. In our empirical analysis, we obtained evidence that effective duration and effective convexity depend primarily on the level of the forward interest rate and volatility. In addition, the higher the interest rate change and the lower the volatility, the greater the differences in pricing of these bonds when using the HL or BDT models.

Free cash flow, ownership structure, and capital structure: Impact on agency cost

The difference in interests between investors and company managers creates a conflict of interest, so in this case, a solution is needed to reduce this problem, namely by issuing an agency cost. This study was conducted to determine the effect of free cash flow, managerial ownership, outsider block ownership, and capital structure on agency costs in Indonesia. The population in this study were all non-financial sector companies that have been listed on the Indonesia Stock Exchange for the 2014-2018 period using multiple regression analysis techniques. The results of this study explain that free cash flow, managerial ownership, and capital structure have a significant positive effect on agency cost. Meanwhile, ownership of an outsider block does not affect agency cost. This study contributes to the science of corporate governance, especially the mechanism for reducing agency costs, and contributes to the non-financial companies themselves to reduce agency costs with manager or manager ownership programs and the right decisions in the use of corporate debt.

The Investigation of the impact of the firm factors on stock returns of non-financial listed firms in kenya

Firms can be distinguished from one another on the basis of different financial and non-financial factors including firm size, firm value, leverage, earnings per share, cash flow and firm structure. These factors are unique to individual firms and influence the perception of investors towards the future performance of the firms. The aim of the study is to examine the impact of, Firm value, Earnings per share and Firm size on stock return for non-financial listed firms in Kenya. This study used census and covered all non-financial listed firms at the NSE between the years 2008 to 2016. The choice of this period was informed by various reforms undertaken at the NSE. These includes a rise in initial public offers (IPOs), additional offers (AOs), right issues, bonus issues and stock splits. These reforms have had great influence on stock returns. There are 44 non-financial listed firms in the Nairobi Securities Exchange. A number of studies in the empirical literature have documented that firm earnings scaled by market value of equity are related to average return. This study is meant to assess the sensitivity of empirical results of firm value, earnings per share and firm size on stock return for non-financial listed firms in Kenya. The study contributed to the body of knowledge in that non-financial listed firms have gained practical insights into the impact of firm factors under consideration on stock return thereby enriching their knowledge on how to increase overall positive results. The study was based on the problem that whereas there were various firm factors attributed to each firm, it was not clear how, firm value, earnings per share and firm size affect stock return for non-financial listed firms on stock markets particularly those with factors like in Nairobi Securities exchange. This was particularly because existing Empirical literature was scarce in this case. Panel regression model was applied to test the significance of the independent variables on dependent variable and unit root test, Co integration and granger causality test was applied for empirical testing of the data. Descriptive statistics was used to describe basic features of the data in the study.

Pomiar ryzyka planu finansowego gospodarstwa domowego

<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;">Konstrukcja planu fiansowego dla gospodarstwa domowego wymaga wzięcia pod uwagę wielu<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> czynników ryzyka, które determinują kształtowanie przyszłej ścieżki dochodów i wydatków gospodarstwa<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> domowego. Czynniki te mogą mieć bardzo różną naturę, a także bardzo zróżnicowany wpływ na strukturę <span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;">przepływów fiansowych. W literaturze brakuje jednak propozycji zintegrowanego pomiaru ryzyka, który<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> umożliwiłby porównanie planów fiansowych pod względem łącznego ryzyka ich realizacji. Celem artykułu<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> jest zaproponowanie metod pomiaru ryzyka planu fiansowego w sposób zintegrowany. W podejściu tym<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> integracja powinna obejmować różne rodzaje ryzyka, wszystkie cele fiansowe gospodarstwa domowego,<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> wszystkie sposoby fiansowania oraz wszystkie okresy w cyklu życia gospodarstwa domowego. Zaproponowane oryginalne podejście pozwala nie tylko na porównanie planów fiansowych między sobą ze<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> względu na poziom ryzyka, ale również tworzy narzędzie do podejmowania decyzji o akceptacji planu.<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> Zintegrowane miary ryzyka mogą też być wykorzystane w samym procesie optymalizacji. Poza tym mogą<span style="font-family: TimesNewRomanPSMT; font-size: 9pt; color: #231f20; font-style: normal; font-variant: normal;"> stanowić ograniczenie lub wręcz element funkcji celu w procedurze optymalizacyjnej.</span></span></span></span></span></span></span><br style="font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;" /></span></span></span><br style="font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: -webkit-auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;" /></span>

The Three-Factor Hedging Strategy for Mortgage Pass-Through Securities: Empirical Evidence

The mortgage pass-through securities sector of the investment-grade bond market is attractive to institutional investors seeking to outperform a bond index without taking a view on credit risk. Market participants view this sector as being less price efficient than the other investment-grade bonds sectors, offering opportunities within the sector to take contrary positions relative to prevailing prices, particularly with respect to future prepayments. In executing a relative value strategy to enhance returns in this sector, portfolio managers must be able to remove interest rate risk. Unlike hedging interest rate risk in the other sectors of the investment-grade bond market, the cash flow structure of mortgage pass-throughs is such that there is interest rate exposure, via prepayment rates, due to a change in the term structure of interest rate. Both academics and practitioners have proposed several strategies for hedging interest rate risk. In this article, the authors evaluate a three-factor hedging strategy for agency pass-throughs, comparing the performance of this strategy to both the single-factor and two-factor hedging strategies. Their analysis finds that under certain conditions the three-factor hedging strategy outperforms both the one- or two-factor hedging strategy.

OWNERSHIP STRUCTURE, DIVIDEND PAYMENT, AGENCY COST AND CORPORATE VALUE (SUATU PENGUJIAN MODEL STRUKTURAL)

The agency problem come because of separation between ownership and management on large corporate, there is a conflict between shareholder as an owner and manager as an agent. Manager focus on high growth of corporate (low dividend) but the owner prefer high dividend. The aims of the research are (1) to analysis the effect of free cash flow, risk and ownership structure to dividend payment ,(2) to analysis the effect of free cash flow, risk and ownership structure to agency cost. (3) to analysis the effect of dividend payment to corporate value, and (4) to analysis the effect of and agency cost to corporate value The technique sampling is purposive sampling. Secondary data is used in this research. It is from financial report like balance sheet, financial statement and cash flow report. It is gotten from Indonesian Stock Exchange. The research period is 2000 up to 2006. It uses pooled data ( joint of time series data and cross section data) so the analysis units are 271 (n=271). To Analysis data is used descriptive analysis and also statistical analysis that’s name structural equation model (SEM). It uses structural equation model (SEM) because the model has a ladder causality relationship and several variable like ownership structure, agency cost, risk , dividend payment and corporate value are latent variables. The results show that (1) risk has a positive significant effect to the agency cost, It means that agency cost can reduce the risk especially high risk investment that manger can do. (2) Dividend payment has a positive significant effect to the corporate value, It supports the-birds-in-the-hand theory and (3) risk has a positive significant effect to the corporate value. It means that investor always care about risk of corporate where they will invest.

Impact of Cash Flow, Profitability, Liquidity, and Capital Structure Ratio on Predict Financial Performance

Impact of Cash Flow, Profitability, Liquidity, and Capital Structure Ratio on Predict Financial Performance

OWNERSHIP STRUCTURE, DIVIDEND PAYMENT, AGENCY COST AND CORPORATE VALUE (SUATU PENGUJIAN MODEL STRUKTURAL)

The agency problem come because of separation between ownership and management on large corporate, there is a conflict between shareholder as an owner and manager as an agent. Manager focus on high growth of corporate (low dividend) but the owner prefer high dividend. The aims of the research are (1) to analysis the effect of free cash flow, risk and ownership structure to dividend payment ,(2) to analysis the effect of free cash flow, risk and ownership structure to agency cost. (3) to analysis the effect of dividend payment to corporate value, and (4) to analysis the effect of and agency cost to corporate value The technique sampling is purposive sampling. Secondary data is used in this research. It is from financial report like balance sheet, financial statement and cash flow report. It is gotten from Indonesian Stock Exchange. The research period is 2000 up to 2006. It uses pooled data ( joint of time series data and cross section data) so the analysis units are 271 (n=271). To Analysis data is used descriptive analysis and also statistical analysis that’s name structural equation model (SEM). It uses structural equation model (SEM) because the model has a ladder causality relationship and several variable like ownership structure, agency cost, risk , dividend payment and corporate value are latent variables. The results show that (1) risk has a positive significant effect to the agency cost, It means that agency cost can reduce the risk especially high risk investment that manger can do. (2) Dividend payment has a positive significant effect to the corporate value, It supports the-birds-in-the-hand theory and (3) risk has a positive significant effect to the corporate value. It means that investor always care about risk of corporate where they will invest.

Kebijakan Dividen dari Perspektive Agency Cost Model (Studi Kasus Perusahaan yang Terdaftar di Bursa Efek Indonesia periode 2011-2013)

The paper examines the influence of agency theory on dividend policies with free cash flow,maturity, capital structure, and ownership dividend variables. The sample used in this research isIndonesian listed companies with observation period from 2010 to 2013, and the data collectiontechnique used is data pooling or merging data. The data is analyzed with multiple linearregression analysis in SPSS program. The result of this study indicates that free cash flow,maturity, and ownership structure do not influence devidend policies, however capital structureinfluences dividend policies in Indonesian listed companies. The research also implies thatagency cost theory, as the main model of relevance dividend preposition, cannot explaindividend policies in Indonesian Companies. The investors cannot rely solely on dividend policiesin term of investment decisions in the future.

企业生命周期与中小企业资本结构

生命周期对企业财务行为有着重要影响。本文以571家中小企业板制造业企业2010~2014年的数据为样本，用现金流量法界定企业所处生命周期，并对不同阶段的资本结构及其影响因素进行对比分析。实证结果表明，相对于成熟期和衰退期，成长期企业资产负债率和长期负债率更高。在企业生命周期的不同阶段，资本结构的影响因素也存在差异：成长期企业资产负债率与成长能力正相关，与非债务税盾负相关，而成熟期和衰退期企业资产负债率则受到盈利能力的负向影响；成长期和衰退期企业长期负债率受企业规模的正向影响以及成长能力和非债务税盾的负向影响，而成熟期企业长期负债率则与盈利能力负相关。 The enterprises life cycle always has a significant effect on financial behavior. In this paper, we construct a panel data containing 571 listed SMEs during 2010 and 2014 as samples. We use cash flow structure to measure life cycle of our samples, and aim at exploring and comparing the decisions of capital structure of SMEs in different life cycle. It turns out that compared with maturation and recession stages, the growth stage has higher Debt-Asset Ratio (DAR) and Long Term Debt Ratio (LTD); influencing factors of the capital structure are various among different stages. The growth has a positive effect on DAR in growth stage while non-debt tax shield has a negative one. But the probability and DAR in maturation and recession stages are negatively correlated. Besides, the firm’s size has positive effects on LTD in growth and recession stages while the non-debt tax shield and growth have negative ones. Probability is negatively correlated with LTD in maturity stage.

The effect of free cash flow and ownership structure on dividend payout ratio in manufacturing companies in Indonesia

Dividend policy is used to determine the amount of net profit after tax that will be distributed to shareholders and the amount of equity in the net income that will be used to finance the company's investment. Optimal dividend policy is a dividend policy that creates a balance between current dividends and growth in the future to maximize the company's stock price. The purpose of this study is to analyze the effect of Free Cash Flow (FCF) and Ownership Structure, consisting of Institutional Own-ership, Family Ownership and Foreign Ownership, on Dividend Payout Ratio (DPR) in manufacturing companies listed on the Indonesia Stock Exchange in 2011-2013. The research methodology used is descriptive analysis method and statistical analysis method. The data used is secondary data consisting of 173 research data used as the sample. Hypothesis testing is done by using multiple linear regression analysis. The results of regression analysis show that free cash flow, family ownership and foreign ownership have positive effect on dividend payout ratio, while institutional ownership does not have negative effect on dividend payout ratio.

Real Options Valuation Under Uncertainty

In this paper we develop a novel valuation model and methodology to value a pharmaceutical R&D project based on real options approach. The real options approach enables the possibility of optimally abandon the project before completion whenever the investment cost turns out to be larger than the expected net cash flow stream. On the other hand, the proposed model accounts for two different sources of uncertainty, those are technical and economic risk. This model incorporates a novel economic state vector where each economic state captures the interaction among different market and economic forces using Fourier series as the particular basis for the economic function space. In this sense, Fourier series are considered as an aggregate of forces playing a relevant role in the process evolution determining the cash flow structure and also allowing us to properly define an economic scenario where the project will be developed.

Surveying the relationship between financial performance, free cash flow, capital structure as well as related or unrelated diversification in Tehran Stock Exchange

Abstract. This study, investigate the relationship between financial performances, free cash flow, capital structure and related and unrelated diversification. Test research hypotheses on 90 companies listed in Tehran Stock Exchange during the period 1386 to 1391 using the panel data show that diversification on firm performance by the index Q Tobin measure is effective and positive relationship between these two variables is significant and there are so related and unrelated diversification has improved performance. Also other research hypothesis was rejected; indicating between free cash flow and capital structure with financial performance, capital structure and free cash flow, free cash flow, capital structure and diversification, there is no significant relationship.

The Impact of Free Cash Flow and Capital Structure on the Performance of the Company

This paper studied the impact of free cash flow and capital structure on the performance of the company. It is based on the theories of the free cash flow and the capital structure, combined with the actual situation of China, using different property listed corporations’ sample, makes an empirical study on the impact of free cash flow and capital structure on the performance of the company. The result shows that on the one hand, having more free cash flow will cause negative effects on the performance of corporation, on the other hand, with the increase in liabilities financing, the listed corporation's performance fall.

A survey on relationship between capital structure, free cash flow and diversification and firm performance of listed companies in Tehran Stock Exchange

Article history: Received May 4, 2014 Accepted 24 September 2014 Available online September 27 2014 This paper presents an empirical investigation to study the effects of free cash flow, share diversification and capital structure on Tobin-Q in selected firms on Tehran Stock Exchange. The population of the survey includes 520 firms listed on this exchange until year 2012 and the survey uses a sample of 105 firms, randomly. The study uses the models originally developed by Palepu (1985) [Palepu, K. (1985). Diversification strategy, profit performance and the entropy measure. Strategic Management Journal, 6(3), 239-255.] to measure the effects of different factors on Tobin Q. The study has indicated that while capital structure and free cash flow influence positively on Tobin Q, diversification has maintained a negative and meaningful relationship with Tobin Q. © 2014 Growing Science Ltd. All rights reserved. Capital structure Free cash flow Diversification Firm performance

Conditional Betas and Investor Uncertainty

We derive theoretical expressions for market betas from a rational expectation equilibrium model where the representative investor does not observe if the economy is in a recession or an expansion. Market betas in this economy are time-varying and related to investor uncertainty about the state of the economy. The dynamics of betas will also vary across assets according to the assets' cash-flow structure. In a calibration exercise, we show that value and growth firms have cash-flow structures that imply an opposing beta dynamics that goes in the direction of solving the value premium puzzle. During high uncertainty periods, value betas are higher while growth betas are lower. We estimate conditional betas empirically using proxies for investor uncertainty and show support of the model's prediction about the dynamics of growth and value betas.

Cooperatives: The Governance of Patronage Dividends (A Corporate Finance Viewpoint)

Members of cooperatives are patrons and owners simultaneously, which turns out to be a consequential feature ingrained in that sort of business associations. This paper puts forward some contributions to the subject. Firstly, it defines a primary cooperative, making hence a contrast with cooperatives of cooperatives and shaping up their distinctive incremental cash-flow structure. Secondly, it focuses on some governance attributes depicted by patronage dividends in their quest for cash flows from assets. Lastly, it points out that the pursuit of growth poses a threat to primary cooperatives, entailing both governance risks and costs whenever these organizations increase in size and scope.

Time-series Analysis for Detecting Structure Changes and Suspicious Accounting Activities in Public Software Companies

This paper offers a novel methodology using several new ratios and comparison approaches to investigate public software companies’ financial activities and condition. The methodology focuses on time-series data mining, monitoring and analyzing. The dataset is based on 100 U.S. software companies with least ten-year SEC verified income statement, balance sheets and cash flow statement. The contribution of this paper is creating and applying several new financial ratios combined with traditional approach to detect companies’ financial structure changes and accounts manipulation. For cash flow statement operating section, our proposed major account to operating net cash inflow and outflow ratios provide a better visualization of the cash sources and usage, which help analysts to observe major cash flow structure changes and make predication. For investing section, our proposed investing cash flow growth contribution ratio is used to identify irregular investment behavior. Combining with the traditional financial ratio tests, we believe that our approach significantly facilitates early detection on suspicious financial activities and the evaluation of its financial status.

Identifying Tools and Techniques for Managing Construction Project Delivery in Small and Medium Enterprises in South African Construction Industry

The purpose of this study was to assess the management tools and techniques that are used to manage time, cost and quality and determine if the management tools and techniques used were effective in managing time, cost and quality. Fifteen small and medium construction enterprises accepted to be interviewed after they were purposively sampled in Gauteng province in the city of Johannesburg, South Africa. This study reports the findings of in-depth structured interviews with directors and construction managers of the small and medium construction enterprises. The results were analysed using content analysis and the findings reveal that the management tools and techniques used to manage time were bar charts or networks; in managing cost, cash flow and cost breakdown structure or bill of quantity, and in managing quality, inspection of work and specifications. The respondents agreed that in using these management tools and techniques they were able to effectively manage their projects and attained the targets set.