This study aims to analyze the system and procedures of administrative correspondence in the auction department of PT Bank Tabungan Negara (Persero) Tbk KC Palembang. The research uses a descriptive qualitative approach, with data collection through field observation during a three-month internship, documentation review of auction-related letters, and interviews with administrative staff and unit heads. The results indicate that the correspondence system at BTN KC Palembang is well-structured but still faces several obstacles, including bureaucratic bottlenecks in the letter disposition process, reliance on manual archiving systems, human errors in data entry, and logistical challenges in external communication with institutions such as KPKNL Palembang. These obstacles affect the efficiency and timeliness of the auction process, which in turn impacts asset recovery (recovery) and bank cash flow. The study concludes that digital transformation—such as implementing e-filing, digital tracking systems, and standard templates—is the most effective solution to improve administrative efficiency and legal certainty in the auction process.

This study examines how accounting treatment choices for special funding schemes affect financial performance and valuation in Indonesia's emerging carbon credit industry. Using PT. Argustara Pilar Utama as a case study, a forestry-based carbon credit company operating under a unique funding arrangement where a single investor fully finances project operations in exchange for fixed-price carbon credit offtake, the research employs quantitative financial analysis methodology including ratio analysis and Discounted Cash Flow (DCF) valuation. Two accounting scenarios are evaluated: Scenario A recognizing investor funds as revenue under IFRS 15, and Scenario B recognizing funds as equity under IAS 32. The findings reveal substantial financial implications from accounting treatment choice. Scenario A produces cumulative positive EBIT of IDR 129.37 billion (2025-2034), Interest Coverage Ratio of 11.37x qualifying for Aa2/AA credit rating, and Enterprise Value of IDR 116.28 billion with WACC of 8.49%. Conversely, Scenario B generates cumulative negative EBIT of IDR 95.60 billion, negative Interest Coverage Ratio triggering D2/D distressed rating, and negative Enterprise Value of IDR 43.99 billion with elevated WACC of 22.81%. The equity value differential between scenarios reaches IDR 160.27 billion. This study concludes that revenue recognition under IFRS 15 is the superior treatment, as net shareholder value of IDR 75.32 billion after tax significantly exceeds zero value under equity recognition, while recommending complementary tax optimization strategies to mitigate double taxation exposure.

The issues faced by partners in this activity include the ineffectiveness and inefficiency of the methods used in producing baglogs, both in the process of mixing wood powder and in baglog pressing, resulting in inconsistent baglog quality. The implementation of appropriate technology in the form of automatic mixing and automatic baglog pressing machines has successfully improved the quality and production capacity of oyster mushroom entrepreneurs in Ngepung Village, Probolinggo Regency. The partner for this Community Service activity is the Bromo Mandiri KTI Cooperative. The applied technology replaces manual methods for mixing wood powder and pressing baglogs, thereby increasing production efficiency by 4 to 5 times compared to manual methods, while producing baglogs with more uniform quality and higher resistance to contamination. Additionally, e-financial training was provided to the partners to enhance their financial management skills, enabling them to record transactions more neatly, manage cash flow effectively, and prepare simple financial reports that can serve as a basis for business decision-making.

Micro-entrepreneurs, particularly small grocery shop owners, commonly encounter challenges in managing business finances and implementing effective marketing strategies. Limited skills in financial recordkeeping often make it difficult for business owners to accurately monitor cash flow and assess their financial condition, which may lead to suboptimal business decisions. In addition, the utilization of digital technology as a marketing tool remains limited, thereby restricting opportunities for market expansion. This community service program aims to strengthen the capacity of micro-enterprises in applying practical basic financial management and optimizing digital platforms for product promotion. The program also seeks to increase awareness of the importance of structured financial management as a foundation for sustainable business development. The activities were conducted through several stages, including the delivery of material on the significance of financial recording, hands-on training sessions, mentoring in preparing simple financial records, and digital marketing simulations using WhatsApp Business and various social media platforms. The results indicate an improvement in participants’ understanding and skills in recording income and expenses, managing business capital more systematically, and utilizing digital features to support promotional activities. Furthermore, participants demonstrated a more positive attitude toward the adoption of technology in their daily business operations. Overall, this program is expected to enhance financial independence, support sustainable business growth, and expand the marketing reach of micro-enterprises

Existential threats from climate change require rapid decarbonization. Corporate capital allocation decisions have an outsized impact on its progress. When cash flow estimates are highly uncertain and early climate action is preferred, the economic value to society of delaying carbon emissions by postponing high-carbon projects may be substantial and should be considered in capital allocation decisions. Results derived for the time value of carbon storage by Parisa et al. (2022) can be used, with estimates of the social cost of carbon (SCC) and project carbon emissions, to calculate the economic value created when a project is postponed. Delaying a high-carbon project may ultimately lead to deployment with lower emissions or abandonment of the project altogether. This study provides estimates for two hypothetical examples that are part of many corporate capital budgeting projects. The results are relevant for researchers and policymakers who are called upon to provide up-to-date public information regarding the net social discount rate and the SCC. Firms should be required to report their carbon emissions. Business leaders, who aim to advance corporate social responsibility (CSR) and progress with sustainability-related solutions, need to have the ethical and interdisciplinary skills to recognize when a decision to delay is appropriate.

ABSTRACT This study investigates how debt affects free cash flow (FCF) and financial performance in microfinance institutions (MFIs). Drawing on a global sample of 484 rated MFIs across 74 countries and applying static and dynamic panel models, the analysis shows that total debt reduces FCF, with short‐term debt exerting the strongest effect. At the same time, debt enhances operational efficiency by lowering costs and increasing operating profits. However, these gains are offset by higher funding expenses, resulting in reduced overall financial performance. The findings suggest that while debt can serve as a disciplinary mechanism in MFIs, excessive reliance on it risks undermining financial sustainability.

Data from the Indonesian Central Securities Depository (KSEI) shows that the number of Single Investor Identification (SID) holders in 2023 has reached more than 11 million, a rapid increase from around 2 million in 2018. This growth reflects an increase in public awareness of the importance of investing in the capital market. In addition, the Indonesian capital market plays an important role in strengthening the resilience of the national economy by providing funds for companies in various sectors (World Bank, 2022; KSEI, 2023). Thus, research on the factors that influence capital market dynamics is becoming increasingly relevant, especially in the context of strategic sectors that contribute significantly to the national Gross Domestic Product (GDP). This study aims to analyze the effect of dividend policy, financing decisions, and free cash flow on Firm value in Indonesia. The research population consists of primary consumption sector companies listed on the Indonesia Stock Exchange (IDX) during the period 2021–2024. The sample was selected using purposive sampling and analyzed using multiple linear regression with classical assumption tests. The results show that dividend policy and financing decisions have a positive and significant effect on Firm value, while free cash flow has a negative but insignificant effect. These findings indicate that optimal dividend distribution policy and a balanced financing structure can increase Firm value, while inefficient free cash flow management can lower investor perception of company performance.

Small and medium-sized enterprises (SMEs) are central to employment and economic activity in the Union of Comoros, yet their growth is persistently constrained by limited access to formal finance. This study examines the barriers SMEs face in obtaining credit from financial institutions and assesses how these constraints affect their operations and growth prospects. Using a descriptive research design, primary data were collected through structured questionnaires administered to 80 SMEs in Moroni, the capital city of Comoros. The analysis, informed by credit rationing and information asymmetry perspectives, reveals that most SMEs are denied formal credit due largely to strict collateral requirements and high interest rates. Notably, relatively strong turnover levels do not necessarily translate into improved credit access, forcing firms to rely on non-bank financial institutions, personal savings, and informal sources, particularly at the start-up stage. Loan facilities available to SMEs are predominantly short-term, placing additional pressure on cash flows and limiting long-term investment. The study concludes that these financing constraints significantly restrict SME growth and weaken their contribution to economic development, highlighting the need for targeted policy and institutional reforms to improve access to finance in Comoros. Keywords: Small and Medium-Sized Enterprises (SMEs), Access to Finance, Credit Constraints, Financial Institutions, Small Island Developing States, Informal Financing, Union of Comoros.

This research seeks to examine the impact of operational cash flow, sales growth, and operating capacity on financial distress within consumer cyclicals firms in the apparel and luxury goods sub-sector, listed on the Indonesia Stock Exchange for the period 2022–2024. This research employs a quantitative methodology utilizing an associative causal framework and secondary data derived from companies' yearly financial statements. We used SPSS software to do multiple linear regression to analyze the data. The results indicate that operating cash flow, sales growth, and operating capacity significantly influence financial distress, suggesting that enhanced cash flow production, sales performance, and asset utilization correlate with a diminished likelihood of financial difficulty. These results show that making a business better at making operating cash flow, keeping sales growth going, and using its assets more efficiently will help improve its financial situation and lower its financial stress. Descriptive data indicate that, on average, enterprises exhibit positive operating cash flow, continuous revenue growth, and an operating capacity over one, signifying operational efficiency and reasonably stable financial conditions. This study underscores the significance of proficient financial and operational management in sustaining financial stability and mitigating the risk of financial hardship in consumer cyclicals companies, especially within the apparel and luxury goods sub-sector.

This study investigates earnings management in firms included in the LQ-45 index of the Indonesian capital market. The analysis focuses on executive digital literacy, investor sentiment, and Environmental, Social, and Governance (ESG) performance, alongside several firm-level financial controls. Panel data consisting of 84 firm-year observations are analyzed using a Fixed Effects Model (FEM) to account for unobserved, time-invariant firm-specific characteristics. The estimation results indicate that the regression model is jointly significant and explains a moderate proportion of the variation in earnings management. However, executive digital literacy, investor sentiment, and ESG performance do not show statistically significant associations with earnings management. By contrast, operating cash flow and leverage are negatively and significantly related to earnings management, suggesting that firms with stronger internal cash generation and greater debt-related monitoring tend to exhibit lower levels of opportunistic reporting. Profitability, firm size, and sales growth are not found to be significant determinants. Taken together, after controlling for firm-specific heterogeneity, variations in earnings management appear to be more closely associated with firms’ financial conditions than with non-financial characteristics within the sampled firms.

This study analyzes the financial optimization strategies implemented by treasurers in organizing the Polbeng Business Expo Chapter II, based on three main indicators according to Thamrin, Liana, and Yani (2024): budget planning, cash flow management, and financial risk management. This research employs a descriptive qualitative method with data collected through in-depth interviews, observations, and documentation, involving treasurers from four main events: Ranking 1 Competition, Fashion Show, Coloring Competition, and Singing Competition. The results show that treasurers systematically identified event needs, distinguished between primary and supporting needs, prepared budgets based on price surveys and previous experience, monitored cash flow through recording and projections, and implemented risk mitigation strategies such as reserve funds, expenditure supervision, and vendor down payments. In addition, coordination among committees supported smoother financial control. The application of these strategies supports efficient use of funds, maintains cash flow stability, and minimizes financial risks during event implementation. Compared to previous unstructured financial practices in student activities, this study demonstrates that systematic financial strategies can improve fund management effectiveness, even when implemented by students without professional financial systems. Overall, the study confirms that financial optimization strategies can be effectively adapted in managing student event finances through consistent planning, recording, and control, contributing to successful event execution and financial accountability.

Purpose This study aims to illustrate how two important theoretical constructs, upper echelons theory and cognitive resource theory, can be applied to the presence of a prominent chief financial officer (CFO)/treasurer dual role (i.e. when a CFO also holds a treasurer title simultaneously) and relevant treasury, financial reporting and audit outcomes. Design/methodology/approach Using a sample of 4,899 firms from 2004 through 2019, the authors examine whether the presence of a CFO/treasurer dual role is associated with financial reporting quality, audit pricing, operating efficiency, the likelihood of receiving a going concern opinion, the frequency of management-issued earnings per share (EPS) guidance, cash flow management and investment efficiency. Findings The authors find that firms with a CFO/treasurer dual role, when compared to non-CFO/treasurer firms with (or without) a separate treasurer, have beneficial outcomes related to audit pricing and going concern opinions. CFO/Treasurer firms issue less frequent EPS guidance, have lower operating cash flow volatility and invest efficiently (i.e. do not under- or over-invest) when compared to non-CFO/treasurer firms with a separate treasurer. The authors document only limited evidence of higher financial reporting quality for CFO/treasurer firms compared to non-CFO/treasurer firms with (or without) a separate treasurer. Originality/value The results are consistent with the notion that firms with CFO/treasurers experience incremental benefits in relevant firm outcomes.

Budgeting and budgetary control play a crucial role in shaping the performance of Small and Medium Enterprises (SMEs) in Tanzania. Effective budgeting allows these businesses to allocate their limited resources appropriately, ensure optimal utilisation and minimise wastage. By establishing financial targets and setting out plans to achieve them, SMEs can make informed decisions regarding investments, operational costs, and pricing strategies. Budgetary control provides a mechanism for measuring actual financial outcomes against planned targets, enabling timely corrective actions when deviations occur. This study analysed how small and medium enterprises follow budgeting and budgetary control principles in Morogoro Municipality. A total of 120 respondents were involved through simple random and purposive sampling. Qualitative data, collected through the key informant interviews, were analysed through thematic analysis, while quantitative data were analysed through descriptive statistics using IBM SPSS Software. Key findings show that budgeting practices varied among SMEs, reflecting their specific operational, financial, and regulatory needs. The frequency of budgetary control reviews correlated with financial performance, emphasising the importance of frequent reviews for cash flow management and resource allocation. Compliance with regulatory obligations, including quarterly reviews, is essential for credible financial reporting. Flexible yet standardised budgeting practices, along with tailored training, technology integration, and collaborative financial advisory services, are recommended to improve budgeting strategies and enhance financial resilience in SMEs.

This study investigates how managerial motives—including ethical attitude beliefs and perceived stakeholder pressure—influence real earnings management (REM) among Taiwanese listed and OTC firms. Using matched survey–archival data from 265 firms and 1,590 firm-year observations (2018–2024), this study estimates abnormal operating cash flows, production costs, and discretionary expenses following Roychowdhury’s (2006) models. The results are derived from a hierarchical linear modeling framework and demonstrate robust reliability and multilevel effects. Robustness tests using lagged variables, accrual-based measures, and subsample analyses confirm the findings. These results highlight the importance of integrating psychological motives and industry context in understanding REM. The study offers implications for corporate governance, audit oversight, and regulatory policy.

This study aims to analyze risk management practices in the micro, small, and medium enterprise (MSME) PD Berkah Rahayu, which operates in the wood-cutting sector in Purwakarta Regency. A descriptive qualitative approach was used, supported by interviews and SWOT analysis, to identify internal and external factors influencing the business. The findings reveal four main categories of risks faced by the enterprise: market risk, operational risk, human resource risk, and financial risk. Market risks arise from fluctuating demand, changes in wood prices, competition with similar businesses, and dependence on local markets. Operational risks include machine damage, inconsistent cutting quality, and delays in raw material supply. Human resource risks are associated with limited skilled labor and lack of training, while financial risks relate to unstable cash flow and increasing operational costs. By applying the Risk Matrix and ISO 31000 principles, PD Berkah Rahayu is able to determine priority mitigation strategies, such as regular machine maintenance, employee competency improvement, strengthening supply chain management, and enhancing financial control. This study highlights the importance of structured risk management in improving sustainability, competitiveness, and operational effectiveness for MSMEs.

Purpose This study investigates the moderating effects of political uncertainty, measured through firm-level political risk (PRISK) and country-level economic policy uncertainty (EPU), on the sensitivity of cash holdings to cash flows. The research examines how the combination of cash flows and political uncertainty affects firms' cash holding behavior. Design/methodology/approach The study utilizes a dataset of 6,412 firm-year observations across 923 publicly traded U.S. firms, covering the period from 2012 to 2021, to test the cash flow-cash holding sensitivity under varying levels of political uncertainty. To validate the findings, a series of robustness tests are conducted across different contexts and specifications. Findings Results indicate that while both cash flows and political uncertainty individually exhibit positive effects on cash holdings, their interaction effect is negative, suggesting that political uncertainty reduces the positive sensitivity of cash holdings to cash flows. EPU demonstrates a stronger impact than PRISK. This negative interaction effect remains robust across all robustness tests: when dividing the sample by ROA performance, using 2SLS with “election cycle” as an instrumental variable, comparing COVID-19 versus non-COVID periods, and examining group-affiliated versus independent firms. Research limitations/implications This study's results underline the complex interplay between political uncertainty and cash flows, which could vary across different economic contexts and periods of heightened uncertainty. Practical implications The findings suggest that firms should consider political uncertainty in their investment and financing decisions and adjust cash holdings dynamically in response to political uncertainty indicators. Originality/value This research provides unique insights into how combined political uncertainty metrics at both the firm and country levels can significantly alter the relationship between cash flows and cash holdings, with practical implications for cash management strategies.

Codigames, founded in 2013 by cousins Francisco (Fran) Martínez and Zacarias Gómez in Murcia, Spain, emerged from Fran’s childhood passion for programming video games. What began as a hobby generating $500 monthly from browser games evolved into an ambitious venture in mobile gaming, driven by Fran’s vision to become “the next Ubisoft of Spain” and the cousins’ recognition of smartphones as an emerging gaming platform. This teaching case presents Fran at a pivotal moment in his entrepreneurship journey. After burning through most of their seed funding, sales fell drastically below expectations and the company’s operational cash flow turned negative. Fran was now forced to consider whether to persist with their current mid-core strategy or attempt a strategic pivot. His decision would need to balance multiple stakeholder interests while addressing immediate cash flow challenges, all while preserving the entrepreneurial vision that had brought them to their current situation.

Background: The rapid digital transformation in logistics requires the adaptation of transport companies to electronic information management, particularly through the implementation of electronic consignment notes (e-CMR). This study examines how the digitization of transport documentation affects the competitiveness, operational efficiency, and environmental performance of road freight transport companies. Methods: A questionnaire survey was conducted among Slovak and Czech carriers to analyze their experience and readiness for adopting e-CMR. The collected data were evaluated using descriptive and comparative methods to quantify economic and ecological impacts, focusing mainly on invoicing efficiency and paper consumption. Results: The results show that only a small share of carriers currently use e-CMR, primarily due to high software costs and the lack of partner participation. Nevertheless, digitization can significantly shorten the average invoicing delay by approximately 11.5 days, releasing around 7% of tied-up working capital and improving cash flow. From an environmental perspective, the replacement of paper CMR forms could save millions of sheets annually, leading to a substantial reduction in CO2 emissions and paper waste within the V4 region. Conclusions: The findings confirm that the adoption of e-CMR improves economic performance, increases transparency, and contributes to sustainability, representing a crucial step toward a more competitive and environmentally responsible road freight transport sector in Europe.

This research is motivated by the low level of compliance of Micro, Small, and Medium Enterprises (MSMEs) in preparing financial reports in accordance with applicable accounting standards. This study aims to understand the meaning of financial reporting requirements for MSMEs, analyze behavioral aspects that influence compliance with financial reporting, and examine the use of financial reports in the business decision-making process. This study uses a qualitative approach with a phenomenological method. Data were obtained through in-depth interviews with MSMEs and analyzed thematically to explore the informants' subjective experiences. The results show that MSMEs interpret financial reporting as a simple recording tool that functions to control cash flow and business continuity, rather than as a formal administrative obligation. Compliance with financial reporting is influenced by the perception of ease, experience, and habits of business actors. Furthermore, financial reports are used only to a limited extent in business decision-making and are often combined with intuition and personal experience. These findings emphasize the need for a behavioral approach to improve the quality of MSME financial reporting.

Micro, Small, and Medium Enterprises (MSMEs) play an important role in the national economy but still face challenges in accessing financing from formal financial institutions. One of the main obstacles to financing access is the limited ability of MSME owners to prepare systematic, accurate, and standardized financial statements. Many MSMEs do not maintain proper transaction records, mix personal and business finances, and lack formal financial reports required for financing applications.This community service program aims to provide education and mentoring on simple financial statement preparation to improve financial literacy and financing readiness of MSMEs. The activities were carried out through socialization, basic accounting training, intensive mentoring on transaction recording, preparation of financial statements, and financing application simulations. The program was conducted for one month targeting Warung Rindu Malam MSME located in Poka Village, Ambon City.The results indicate an improvement in participants’ understanding and skills in financial recording and preparation of income statements, simple balance sheets, and cash flow statements. The targeted MSME successfully produced organized financial documents that are ready to be used for financing applications. This program is expected to encourage more professional and sustainable MSME financial management.