Financial Cash Research Articles

Risk-Adjusted Returns of Private Equity Funds: A New Approach

Abstract This paper introduces a new metric, α, to benchmark the performance of individual private equity funds. Our metric is substantially less sensitive to noise in fund cash flows compared to the popular public market equivalent (PME) and its generalization (GPME), while having the same aggregate pricing implications as GPME. For a large data set of fund cash flows, α estimates have much lower standard deviation across funds than does (G)PME. For buyout funds, PME and α are close, but deviate in certain subsamples. Using α increases power in regressions involving fund performance and improves performance predictability of future funds. (JEL C58, G12, G23, G24)

УДОСКОНАЛЕННЯ ОРГАНІЗАЦІЙНОГО ЗАБЕЗПЕЧЕННЯ ПРОЦЕСУ ЗАЛУЧЕННЯ ФОРМИ ВЕНЧУРНОГО БІЗНЕСУ ДЛЯ РОЗВИТКУ ПІДПРИЄМСТВА В УМОВАХ ЦИФРОВІЗАЦІЇ ЕКОНОМІКИ

The necessity for improving the existing organizational framework for engaging venture business forms is justified, aiming to facilitate the implementation of new technologies, elevate production to a higher level, and enhance the competitiveness of enterprises in both domestic and international markets. The organizational support for involving venture business forms in the development of industrial enterprises in the conditions of economic digitization is enhanced. A scheme for selecting the organizational form of venture business and funding sources is proposed, allowing the utilization of digital transformation tools to increase the effectiveness of venture business engagement. Venture business is defined as entrepreneurial activity involving the infusion of risky investments into the innovative development of a knowledge-intensive industry, prone to potential growth. The following organizational forms of venture business are identified: "independent ventures," "external ventures," and "internal ventures". Various types of organizational forms of venture business and sources of their funding are considered. The engagement of venture business forms is carried out through financing the venture using various capital sources, specifically from the company's cash fund, funds from venture investors, and funds obtained from a venture fund. Using the PATTERN method, a goal tree for each form of venture business and funding source is constructed. The cost forecast for organizing an internal venture with funding from the company's own financial resources is conducted. The author also proposed an alternative venture financing option using the company's funds, such as raising funds from a venture fund through the sale of 10–20% of the company's shares. The proposed measures will enable industrial enterprises to overcome their crisis and become competitive in both external and internal markets.

Analysis of payment methods in merger and acquisition deals within the United Kingdom

Purpose This study aims to examine the effects of payment methods used in mergers and acquisitions (M&A) conducted by UK companies spanning the period from 2007 to 2019. Design/methodology/approach The study used the estimated expected returns method to identify abnormal returns during the deal announcement period, applying event study analysis with both univariate and multivariate regression models to detect cumulative abnormal returns around the announcement timeframe. Findings The results show a short-term positive return increase for acquiring firms, controlling for deal-specific characteristics like target firm location and payment methods. The authors observed a preference for cash financing across domestic and cross-border transactions. Multivariate analysis revealed insignificance between payment methods and deal characteristics like cross-border acquisitions and diversification. Research limitations/implications The study’s focus on publicly traded firms in the UK and the absence of a comparative analysis across different regions and markets limits the sample size and may impact the generalizability of findings. Practical implications The study proposes three practical implications. Firstly, firms should tailor payment methods to each transaction, aligning with strategic goals to optimize value and mitigate risks. Secondly, decision-makers must prioritize comprehensive due diligence and strategic alignment throughout M&A processes to enhance success and maximize synergies. Finally, analysing broader strategic contexts and regulatory landscapes when structuring transactions enables goal attainment, such as market expansion or value creation. Social implications The study’s findings can promote transparency and accountability among corporate decision-makers in M&A transactions. Stakeholders can advocate for transparent decision-making processes, enhancing trust in corporate governance. Originality/value This study provides valuable insights into the impact of payment methods on shareholder value in M&A transactions involving UK companies, informing strategic decision-making and contributing to the understanding of corporate finance dynamics.

How Do Elite-Educated CEOs Choose the M&A Payment Method? Evidence from Taiwan

This paper examines the influence of CEOs with elite educations on the selection of payment methods in mergers and acquisitions (M&A). Analyzing a unique hand-collected dataset of M&A announcements involving Taiwanese acquirers during 2007–2020, we find that acquirers led by elite-educated CEOs are more likely to opt for cash financing in M&A transactions, a preference that persists even after conducting robustness tests and addressing endogeneity bias. Elite-educated CEOs with a Ph.D. or Master's degree in management- or finance-related disciplines are further found to exhibit a marked preference for cash payments, particularly when their firms face greater financial constraints. These observations can be attributed to potentially lower costs of external funding and might also reflect a perception among these CEOs that their firms are undervalued, as posited by both the financing proficiency hypothesis and the overconfidence trait hypothesis. By dissecting distinct implications of these two hypotheses for M&A valuation, we finally examine and show that acquirers led by elite-educated CEOs, particularly those choosing cash for M&A financing, experience superior post-M&A stock returns and operational performance. Our conclusion thus suggests that the financial acumen derived from elite education, rather than overconfidence, predominantly influences M&A payment methods and favorably impacts subsequent valuation outcomes. Overall, this study represents a pioneering effort to shed light on the often-overlooked role of top executives' elite educational backgrounds in strategic decision-making within the context of M&A.

Free Cash Flows and Corporate Buybacks: A Study of Indian Firms

The present research examined the effects of cash flow volatility on the buyback decisions of Indian firms. The sample constitutes 179 Indian companies listed on the Bombay Stock Exchange from 2012-2020. Firms have been divided into two sets, i.e., permanent and volatile cash flow firms. Across these two sets, the study determines the major factors affecting their buyback decisions. The results of ordinary least square regression suggested that when firms have fluctuating cash flows each year, they prefer to opt for repurchases than dividend payments. Further, stock undervaluation is the key determinant of repurchases decisions. Thus, firms with constant cash flows are not highly motivated for buyback decisions. Further, the study explored that larger the size of the firm, lower is the tendency to repurchase shares. Large, manufacturing and mature firms with consistent cash funds are more strongly tended towards repurchases. Correspondingly, such companies engaged in buybacks because of their low market-to-book ratios and high information asymmetry. As cash based firms become more old, their propensity to purchase equity reduces.

The risk and return of impact investing funds

We provide the first analysis of the risk exposure and risk-adjusted performance of impact investing funds, private market funds with dual financial and social goals. We introduce a dataset of impact fund cash flows and exploit distortions in VC performance measures to characterize risk profiles. Impact funds have a lower market β than comparable private market strategies. Accounting for β, impact funds underperform the public market, though not necessarily more so than comparable strategies. We consider alternative pricing models, accounting for sustainability and emerging markets risk. We show investors’ wealth portfolios and taste change the perceived financial merit of impact investing.

Pengaruh Past Performance, Fund Age, Expense Ratio dan Fund Cash Flow Terhadap Kinerja Reksa Dana (Studi Kasus Reksa Dana Saham Periode Tahun 2013-2019)

This study was conducted to examine and analyze the effect of (1) To determine and analyze the effect of past performance on the performance of mutual funds; (2) To determine and analyze the effect of fund age on the performance of mutual funds; (3) To determine and analyze the effect of the expense ratio on the performance of mutual funds; (4) To find out and analyze the effect of fund cash flow on the performance of mutual funds. The method used in this research is multiple regression analysis. The data analysis tool used is SPSS, the sample in this study obtained 12 investment managers obtained using purposive sampling method. The results show that past performance, fund age, expense ratio and fund cash flow have a significant effect on the performance of mutual funds listed on the Indonesia Stock Exchange (IDX) for the period 2013-2019. The results of this study prove the effect of past performance, fund age, expense ratio and fund cash flow on the performance of mutual funds through empirical testing using the singnaling theory on sample companies on the Indonesia Stock Exchange. The practical part of this research is to provide information, references, and considerations for companies or investment managers who are members of the Indonesia Stock Exchange which publish financial reports for decision making for the management.

Proposed improvements to Istibdal implementation management in the state of Penang

Purpose This study aims to examine the factors of implementing istibdal waqf and generating cash waqf funds through istibdal in Penang. This study was based on the previous problem statements, stating that waqf property could not be developed due to lack of cash funds. This has allowed the study to explore the factors for implementing istibdal waqf property and the extent to which the istibdal method can generate cash waqf funds in Penang. Design/methodology/approach This study adopted a qualitative method by conducting semi-structured interviews to achieve its research goals. Semi-structured interviews were conducted to comprehensively understand the current practice on istibdal cases in Penang State Islamic Religious Council (MAINPP) through official institutions concerned with waqf management practices in Penang. This research relied on purposive sampling to select the informants. It is a sampling strategy to select the informants in advance based on the research question. To achieve the purpose of this study, two officers from MAINPP were selected based on their working experience and specialisation criteria. As a result, several themes were successfully defined from the interview data before being analysed based on the content analysis method. Findings The results present three istibdal implementation processes outlined by MAINPP, namely, the istibdal implementation process for waqf land involved in the acquisition by state authorities (PBN), non-productive waqf land and istibdal applications from certain parties. The results also reveal two factors in implementing istibdal in Penang: the acquisition of waqf land by PBN and the application of istibdal for cemeteries by the Islamic Centre of Universiti Sains Malaysia. From the point of cash fund generation, no case of istibdal implementation records the generation of cash funds to MAINPP. Thus, this study ends with proposals for improving the process and implementing istibdal in Penang to generate cash funds to help MAINPP manage waqf properties. Research limitations/implications The study only focused on implementing factors and generating cash waqf funds through istibdal in Penang. At the same time, it can be expanded to other states like Terengganu, Johor and Kelantan. This study only interviewed officers who manage matters related to the affairs of waqf properties. Therefore, it is believed that the study can be extended to other respondents, such as experts in cash fund generation investments and others. Practical implications This study proposed improvements to the policy and practice of istibdal waqf property to MAINPP after the shortcomings were identified throughout this study. If improved, these proposals will significantly impact the waqf properties involved in implementing istibdal, where it can generate cash and ensure the constant economic value of waqf properties. Social implications This study has great implications for society through the development of a cash waqf fund that can provide great benefits to the needy, in addition to increasing funds for the welfare expenditure of Muslims through rental income, investment and development. Progress and significant impact on waqf property can provide a high indicator of the efficiency of an organisation in managing waqf property. This can attract the interest of the public, especially the wealthy, to always fulfil welfare through the waqf mechanism and share the wealth with the needy. Originality/value This study contributes to comprehensive field data on the implementation of istibdal in Penang. The data analysis results are significant to be used by the waqf property management.

Analisis Sistem Akuntansi Kas Kecil Pt Cli Kantor Cabang Surabaya

PT Combi Logistics Indonesia (CLI) Surabaya branch office is engaged in export-import transportation services. Implementing a petty cash accounting system helps the company run conductively. Thus there are no conditions in the company's financial management. The research aims to determine the company's petty cash accounting system analysis. The qualitative research type used is observation, interview, and data documentation data collection procedures. Data analysis techniques are data reduction, presentation, and conclusion. The research results show that the petty cash accounting system function is not running well because the cash function, accounting function, and operational function (users of petty cash funds) are one. So there are problems: duplicate work, accountability summary, and authorization. The subsequent research result forms related to the petty cash accounting system have been implemented. However, there has been no evaluation regarding their effectiveness. The next research result was that the company had carried out journal reporting for 2 years because it was only a branch office, and subsequent reporting was carried out by the central finance department.

Financial assets in the system of financial legal relations

The article examines financial assets in the system of financial legal relations from the point of view of current legislation and regulatory acts of the European Union. The object of the study is a set of social relations regarding financial assets. The purpose of the article is to develop scientifically based conclusions about financial legal relations related to the use of financial assets in economic turnover. The work uses dialectical, logical, systematic, analysis and synthesis, formal- legal, comparative-legal and other methods of scientific knowledge. It has been established that the financial assets of an enterprise, institution, organization are a separate group of assets provided in cash or other, mostly intangible goods, containing monetary claims, which have a monetary value and are capable of bringing economic benefits to the state in the process of formation, distribution and use of cash funds (state and non-state) aimed at solving social problems. A financial asset is a cross-industry category. From a material point of view, a financial asset is characterized as a fund of funds of a business entity, from a financial and legal point of view, a financial asset is a source of budget revenues, which in the process of taxation connects the fund of funds of a business entity with public monetary funds. Financial assets for the purposes of tax and legal regulation can be presented as property and property rights. Financial assets include cash and non-cash funds, documentary and non­documentary securities, digital currency, equity instruments, digital financial assets (including hybrid rights), claims arising from various grounds, receivables. It is indicated that business entities conducting business activities are entitled to independently carry out financial activities, after paying taxes and mandatory payments, to dispose of the remaining profit. Understanding the legal nature and content of financial assets allows systematizing approaches regarding the place in the system of financial legal relations and the use of these resources in economic activity.

REVIEW OF PT SHARK SURYA DISTRIBUTION'S PETTY CASH ACCOUNTING SYSTEM AND SPENDING

Petty Cash is very important to the company's operating activities. Usually used in small nominal transactions that occur every day from the start of the company's operating hours to the end of operating hours. The purpose of this study was to identify the Petty Cash Fund Recording System and the Use of Petty Cash Funds by PT. Shark Surya Distribution. Data collection methods include documentation, interviews, and observation sheets. Descriptive analysis is a data analysis technique. This research found that PT. Shark Surya Distribution uses the Imprest fund system, which records when the initial balance is topped up and when it must be replenished by a small cash fund recording system, as a small shoot fund recording system. Using small cash at PT. Shark Surya Distribution is generally correct; it is simply that certain monies are spent without discrimination and are not recorded in the petty cash financial records information system. The authors suggest that all areas of financial recording and reporting are governed by Required Standard Operating Procedures (SOPs). This SOP should include specific recommendations for tracking petty cash finances as well as strategies for dealing with any discrepancies that may develop.

Social Capital in Determining Recipients of The Village Fund Cash Assistance (BLT-DD) in Woro Village, Indonesia

Village Fund Cash Assistance (BLT-DD) was reintroduced in 2020 as a program by the Indonesian Government to reduce the negative impacts of COVID-19. BLT-DD is distributed to poor people who meet certain eligibility requirements in many rural areas in Indonesia, including Woro Village in Bojonegoro Regency. In implementing the BLT-DD program, strong social capital is needed in determining the target recipients of the program. The research aims to analyze community social capital in the process of selecting applicants for the BLT-DD program. Focus on analyzing social capital element factors, namely trust, networks and norms using Structural Equation Modeling analysis based on Partial Least Square (SEM-PLS) analysis.. Determining the sample using purposive sampling technique and calculations based on the Kirche Morgan formula obtained a sample of 95 respondents. The results of research on social capital show that trust is the most influential element of the social capital of the Woro Village community. However, there are other elements of social capital, namely networks and norms, that need to be increased. So that overall social capital can support program implementation effectively and on target in supporting post-COVID-19 village recovery.

Evaluation of Petty Cash Accounting: A Case Study at a Job Training Institution

This research aims to evaluate the petty cash recording process at the SCK job training institution. Researchers used qualitative methods, namely interviews, observation, and analysis of the petty cash accounting system. The implementation of petty cash has been carried out by procedures and the recording has been carried out according to the flow established by the institution. However, several things are inaccurate and not by the accounting information system that should be implemented by petty cash users using the imprest fund method. In order not to experience a shortage of petty cash funds, companies should use an imprest system that meets standards. Companies must pay attention to the principles of internal control so that the institution’s operational activities run according to the expected goals and avoid misappropriation of petty cash funds.
 Keywords: Petty cash recording, imprest fund system, accounting system information

The Impact of Consumptive Behavior and Hedonic Lifestyle on the Effectiveness of Blt-Dd Recipients (Case Study in Parongpong District, West Bandung Regency)

This research aims to test and analyze the relationship between consumer behavior and hedonic lifestyle on the effectiveness of recipients of direct cash assistance from BLT-DD village funds who are recipients of BLT-DD assistance in Parongpong District, West Bandung Regency. This research uses descriptive and verification methods with a quantitative approach or in the form of numbers. The sample in this research was 64 respondents who received Direct Village Fund Cash Assistance (BLT-DD). The analysis used is multiple linear regression analysis, which is used to determine the relationship between the independent variable and the dependent variable. The results of the research show that: (1) Based on the table of test results that have been carried out, it is known that the calculated t value = -0.027 with t table = 1.998 (t calculated < t table). Based on the research results above, to be able to find out the value of the coefficient of determination, it is shown by the R Square value, which is 70.6%

Akuntabilitas dan Transparansi Pengelolaan Penyaluran Bantuan Langsung Tunai Dana Desa

This research aims to determine accountability and transparency in the management of the distribution of Direct Village Fund Cash Assistance (BLTDD) in Jaring Halus Village, Secanggang District, Langkat Regency. The approach method in this research is a descriptive qualitative method. The data collection techniques used were observation and interviews conducted directly in the field as well as documentation to support this research. Based on the results obtained, the implementation of accountability in BLTDD management is said to be quite good, in planning the allocation of village funds, responsibility in managing village funds and realizing part of the development planning in Jaring Halus Village. Apart from that, the village government still has shortcomings, such as only involving the community during the planning stage, while at the next stage only the village government knows and also all plans discussed by village officials are not all realized. Apart from that, in implementing transparency in BLTDD management, the village government does not apply transparent principles in managing village funds. This is due to the lack of openness to the community in managing village fund allocations in village development, and there are still many limitations to the community in obtaining information regarding the management of village fund allocations.

Efektivitas Sasaran Bantuan Langsung Tunai di Desa Pakuluruan, Kecamatan Koroncong, Kabupaten Pandeglang

This research focuses on how well the effectiveness of Direct Cash Transfer (BLT) Program from Village Fund (DD) in Pakuluran Village, Koroncong Sub-district, Pandeglang Regency. The purpose of this research is to describe and analyze how the implementation of the BLT Program originating from DD for Beneficiary Families (KPM) in Pakuluran Village, Koroncong District, This research method uses descriptive qualitative methods. The data obtained in this study through data analysis techniques in the field, which include data collection activities, data reduction, data presentation, and conclusion drawing. The results showed that : (Particularly in the context of handling the impact of Covid-19, the economic impact, the Pakuluran Village Government provides BLT sourced from DD and then distributed to the community through a timing mechanism. (2) The effectiveness of the BLT plan in terms of the timeliness of the BLT distribution was on time and followed the existing mechanism. At the same time, looking from the side to make an accurate selection, the village government followed the procedure. The targeting accuracy aspect showed that the BLT distribution from DD was right on target. Based on the results of the research and discussion presented by the researcher regarding the targeted Effectiveness of Village Fund Cash Assistance (BLT) for the community of Pakuluran Village, Koroncong Sub-district, Pandeglang Regency, it can be concluded that the distribution of BLT DD for the community of Pakuluran Village, Koroncong Sub-district, Pandeglang Regency, is considered effective.

Methodological approaches to analyzing cash funds of enterprises

Conducting economic activities without attracting cash funds is not possible, as money plays a direct role in a variety of enterprise operations, whether it's paying rent, and salaries, providing the enterprise with fixed assets, purchasing raw materials, distributing dividends to shareholders, or paying for construction and installation work. The success of a business entity's activities and its ability to finance current operations while timely repaying debts to creditors and accumulating funds for further investment in production expansion depend on the balanced size of cash inflows and outflows. Therefore, the analysis of cash funds is an important component of economic analysis at every enterprise, aimed at finding ways to optimize based on evaluating the sufficiency of formation, effectiveness of application, as well as the balance of inbound and outbound cash flows. This article identifies the stages of analyzing the existing cash flows of a business entity and clarifies the information base used during its implementation. Relative liquidity indicators have gained the widest use among financial condition indicators. The article provides a characterization of liquidity indicators and summarizes scholars' views on determining their normative values. It is proven that the main difficulties arise during the interpretation of the analysis results, as there are no uniform standards even for liquidity ratios in economic literature, which leads to ambiguity in assessing the level of cash management success and their sufficiency to ensure the company's solvency. It is noted that achieving a balance between positive and negative cash flows is one of the main directions of optimizing cash flow. The article describes the composition of indicators characterizing the state and effectiveness of cash flow formation and the efficiency of cash fund utilization. It is emphasized that a reasoned and comprehensive economic analysis of cash funds creates conditions for rational cash management, as it helps to track key development trends of the enterprise, identify the main factors influencing it, and make further forecasts.

Sistem Akuntansi Dana Kas Kecil di PT Macan Sejahtera Cahaya

Petty cash funds are used to make it easier to manage small purchases or operational costs that often occur every day. The system used in the company is a fluctuating cash system. This research aims to determine the implementation of the petty cash fund accounting system at PT Macan Sejahtera Cahaya. The study used descriptive qualitative method. The data source used is primary data. The data collection method used was interviews and documentation. The data analysis method used in this research is qualitative data analysis. The research results showed that there were expenditures that exceeded the petty cash balance which resulted in the petty cash being underfunded. So, petty cash users use their personal money to carry out transactions when there is a shortage of petty cash funds. Therefore, the outhor recommends that companies use a fixed cash system, because the amount of petty cash funds will be more controlled and there will be no shortage of petty cash funds.

IMPLEMENTASI BANTUAN LANGSUNG TUNAI (BLT) DANA DESA DALAM MENANGANI DAMPAK COVID-19 (STUDI KASUS DESA MEKAR SARI KECAMATAN GUNUGSARI KABUPATEN LOMBOK BARAT)

This research discusses the implementation of direct cash assistance from village funds for communities affected by Covid-19 in Mekarsar Village, Gunungsari District, West Lombok, bearing in mind that the impact of Covid-19 is very devastating, especially for the community's economy, not only Indonesian people but the whole world feels the impact. .So in this case the researcher tries to dig deeper into the Village Fund Direct Cash Assistance (BLT) DD, related to what obstacles, barriers and challenges exist so that we don't always blame the government and we always feel that we are in the right. to find out how the Village Fund Direct Cash Assistance (BLT-Village Fund) is implemented and the impact of implementing Village Fund Direct Cash Assistance (BLT-Village Fund). Theoretically, the benefits of this research are expected to be able to provide an overview of the Implementation of Direct Village Fund Cash Assistance (Village Fund BLT) in Mekarsari Village, Gunungsari District, West Lombok. The research method used is a qualitative method with a case study approach. The results of the research show that there are still many obstacles and challenges that occur, including: Many family members in the community are poor. as well as existing budget limitations so that we are forced to reduce beneficiary families.

Pengaruh Kebijakan Deviden, Sustainability Reporting, dan Arus Kas Pendanaan terhadap Return Saham Dimoderasi Nilai Perusahaan

The business world is getting tougher due to the large number of new companies. Company management must compete and overcome difficulties. Shareholders need to evaluate the company's prospects in the future. The stock return received by shareholders is one of the important factors that help investors assess the company's prospects. The purpose of this study is to analyze and review the effect of dividend policy, sustainability reporting, funding cash flow on stock returns moderated by firm value. This research method uses descriptive qualitative. By describing the data obtained from literature review, a phenomenon can be studied. These data can provide new insights into the phenomenon and identify problems that remain unanswered. The results of this study indicate that the variables of dividend policy, sustainability reporting, and funding cash flow affect stock returns. And company value can moderate dividend policy, sustainability reporting, and funding cash flow on stock returns.