Cash Position Research Articles

Impact of Corporate Governance on Firms’ Financial Flexibility in the Emerging Economy: Evidence From Bangladesh

Corporate governance has a positive impact on firm performance. Financial flexible firms are a better performer when there are financial constraints as well as financial crises. However, what motivates financial flexibility is a dearth research area in the existing finance literature. The objectives of this research are to investigate the relationship between corporate governance and financial flexibility; how corporate governance influence financial flexibility; and, what factors of corporate governance are dominant to influence financial flexibility. To pursue the research objectives we chose Cement Industry of Bangladesh as a case. We consider liquidity, Internal Funds and Unused debt capacity as the proxy of financial flexibility and Ownership Concentration, Board Size, Board Independence as Corporate Governance variables and Firm Size, Market to Book Ratio, Debt Capacity, Financial Constraints and Firm Age as control variable to estimate the relationship between corporate governance and financial flexibility. This study evidences that Board Structure has no significant influence on firms’ cash holding(Liquidity).However, Firms Age and Market to Book Value have a significant influence on firms' cash position. This study also finds that Ownership Structure has no positive impact on Firms' Unused Debt Capacity but Financial Constraints and Market to Book Value have a positive significant impact on firms' unused debt capacity. However, Firm Size has a positive relationship with Internal Funds.

Evaluation of Cash Management at Kirupalaya Trust Villupuram

The present project study is on “An Analysis of Cash Management at Kirupalaya Trust, Villupuram”. This study highlights the concepts of cash management, its components and the trend in the cash management based on past five years data. This study also points out the problem faced by the company in maintaining a proper cash management level. This study is about the cash management in Krupalaya Trust, made for certain period only i.e. 2013 – 2017. To know the sources of Cash inflow and uses of cash outflow in the company. To determine how Short-Term obligations of the Company are met by the Liquidity Ratio and Short-Term Solvency Position and the trend. Through this study the financial results of the company were analysed in different accepts, from that the assessment of the cash management of company is made several issues regarding the cash management was monitored and the cause and effect of the study concludes that the overall cash position of the company is better. The company’s overall position is at a good position.

PENGARUH DEBT EQUITY RATIO (DER), RETURN ON ASSET (ROA), CASH POSITION (CASH), ASSET GROWTH (GROWTH) TERHADAP DIVIDEN PAYOUT RATIO PADA PERUSAHAAN MANUFAKTUR SUB SEKTOR FOOD AND BEVERAGE YANG TERDAFTAR DI BEI PERIODE 2014-2016

The purpose of this research is to examine the influence factors which influence the Dividend payout ratio (DPR) at the Manufacturing company food and beverage sub sector listed in Indonesia Stock Exchange from 2014-2016. The number of samples of 3 companies from 18 companies. From the analysis result indicate that the variable of DER, ROA, CASH, GROWT simultant influence to dividend payout ratio, but partially variable of DER and ROA have positive but not significant effect which company must strengthen cash position and ability to get profit enhanced in order company ability paying dividends and firms in distributing dividends depends on the firm's strong earnings, so companies should be able to predict the increase in profits earned by the company. Due to the stability of profits earned and the payment of a stable dividend will make investors more interested in investing funds for the company. CASH and GROWTH variables have a negative and insignificant relationship, which means that firms must be able to increase cash position, and assets growth Keywords :Dividend Payout Ratio (DPR), Cash Position (CASH), Return on Assets (ROA Debt to Equity Ratio (DER), Asset Growth (GROWTH)

Analisis Faktor-Faktor Yang Mempengaruhi Kebijakan Dividen

The purpose of this research is to study the influence of cash position, Total Assets Turnover (TATO), Return On Assets (ROA) and Debt to Total Assets (DTA) on the Dividend Payout Ratio (DPR). The sample used in this study is the company incorporated in the Business Index 27 on the Indonesia Stock Exchange for the period 2013-2017. The technique used in sampling is purposive sampling with secondary data in the form of financial statements. The data analysis tool in this study uses multiple linear regression. Data testing consists of classic assumption and hypothesis testing. The results of this study indicate that the variables TATO and DTA affect the DPR while the variable cash position and ROA have no effect on the DPR. Discussion and implication were suggested in the paper.

PENGARUH CASH POSITION, DEBT TO EQUITY RATIO DAN RETURN ON ASSETS TERHADAP DIVIDEND PAYOUT RATIO PADA PERUSAHAAN MANUFAKTUR, Tbk PERIODE 2012 ÔÇô 2016

The objective of this research is to find out and analyzes the influences of Cash Position, Debt to Equity Ratio, and Return on Assets to Dividend Payout Ratio at manufactured industry period 2012 -2016. The data used in this research is from the yearly financial report in Indonesian Stock Exchange (IDX). The sample use is 7 industry of 149 listed manufactured industy at 2012 ÔÇô 2016. The analysis of method used in this research is the multiple linear regressions method, the hypothesize test used the stastistical of F-test and the stastistical of t-test. The results data analysis showed that all the independent variable, which Cash Position, Debt to Equity Ratio, and Return on Assets simultaneously have an influence on the Dividend Payout Ratio (DPR). At the determinant coefficient (R2) it shows that research independent variables able to explain 19,3% to Dividend Payout Ratio while the remaining of 80,7% explained by independent variables that were un-research. While partially (t-test), only the Return on Assets (ROA) which have an influence on the Dividend Payout Ratio (DPR). Keywords: cash position, debt to equity ratio (DER), return on assets (ROA), dividend payout ratio (DPR)

PENGARUH CASH POSITION, DEBT TO EQUITY RATIO DAN RETURN ON ASSETS TERHADAP DIVIDEND PAYOUT RATIO PADA PERUSAHAAN MANUFAKTUR, Tbk PERIODE 2012 – 2016

The objective of this research is to find out and analyzes the influences of Cash Position, Debt to Equity Ratio, and Return on Assets to Dividend Payout Ratio at manufactured industry period 2012 -2016. The data used in this research is from the yearly financial report in Indonesian Stock Exchange (IDX). The sample use is 7 industry of 149 listed manufactured industy at 2012 – 2016. The analysis of method used in this research is the multiple linear regressions method, the hypothesize test used the stastistical of F-test and the stastistical of t-test. The results data analysis showed that all the independent variable, which Cash Position, Debt to Equity Ratio, and Return on Assets simultaneously have an influence on the Dividend Payout Ratio (DPR). At the determinant coefficient (R2) it shows that research independent variables able to explain 19,3% to Dividend Payout Ratio while the remaining of 80,7% explained by independent variables that were un-research. While partially (t-test), only the Return on Assets (ROA) which have an influence on the Dividend Payout Ratio (DPR). Keywords: cash position, debt to equity ratio (DER), return on assets (ROA), dividend payout ratio (DPR)

Operational and Financial Decisions Within Proportional Investment Cooperatives

Problem definition: We explore the coordination of operational and financial decisions of proportional investment agricultural marketing cooperatives, where members’ (farmers’) equity is required to be in proportion to their patronage (i.e., produce supplied). Academic/practical relevance: In a cooperative (co-op), operational and financial decisions are inseparable because the co-op’s investment capital is linked to its economic transactions with members. We include unique features of co-ops into an analytical model and derive some key results that are different from those for investor-owned corporations. Methodology: In the presence of yield and market uncertainty, we model this situation using a Markov decision process wherein the decisions of processing quantity interact with the financial decisions of retained earnings and short-term loans. The objective is to maximize the expected present value of the aggregated farmers’ payments over a finite horizon. Results: (1) Characterization of the properties of the value function and the optimal policy; (2) explicit expressions for the deterministic yield dynamic program, wherein a myopic policy is optimal; and (3) identification of financial risks associated with uncertain market and yield. Managerial implications: The results provide insight into a co-op’s decision making, cash position, and risk management.

Optimal decisions for salvage logging after wildfires

Strategic, tactical, and operational harvesting plans for the forestry and logging industry have been widely studied for more than 60 years. Many different settings and specific constraints due to legal, environmental, and operational requirements have been modeled, improving the performance of the harvesting process significantly. During the summer of 2017, Chile suffered from the most massive wildfires in its history, affecting almost half a million hectares, of which nearly half were forests owned by medium and small forestry companies. Some of the stands were burned by intense crown fires, which always spread fast, that burned the foliage and outer layer of the bark but left standing dead trees that could be salvage harvested before insect and decay processes rendered them unusable for commercial purposes. Unlike the typical operational programming models studied in the past, in this setting, companies can make insurance claims on part or all of the burnt forest, whereas the rest of the forest needs to be harvested before it loses its value. This problem is known as the salvage logging problem. The issue also has an important social component when considering medium and small forestry and logging companies: most of their personnel come from local communities, which have already been affected by the fires. Harvesting part of the remaining forest can allow them to keep their jobs longer and, hopefully, leave the company in a better financial situation if the harvesting areas are correctly selected. In this work, we present a novel mixed-integer optimization-based approach to support salvage logging decisions, which helps in the configuration of an operational-level harvesting and workforce assignment plan. Our model takes into account the payment from an insurance claim as well as future income from harvesting the remaining trees. The model also computes an optimal assignment of personnel to the different activities required. The objective is to improve the cash position of the company by the end of the harvest and ensure that the company is paying all its liabilities and maintaining personnel. We show how our model performs compared to the current decisions made by medium and small-sized forestry companies, and we study the specific case of a small forestry company located in Cauquenes, Chile, which used our model to decide its course of action.

PENGARUH DEBT EQUITY RATIO (DER), RETURN ON ASSET (ROA), CASH POSITION (CASH), ASSET GROWTH (GROWTH) TERHADAP DIVIDEN PAYOUT RATIO PADA PERUSAHAAN MANUFAKTUR SUB SEKTOR FOOD AND BEVERAGE YANG TERDAFTAR DI BEI PERIODE 2014-2016

The purpose of this research is to examine the influence factors which influence the Dividend payout ratio (DPR) at the Manufacturing company food and beverage sub sector listed in Indonesia Stock Exchange from 2014-2016. The number of samples of 3 companies from 18 companies. From the analysis result indicate that the variable of DER, ROA, CASH, GROWT simultant influence to dividend payout ratio, but partially variable of DER and ROA have positive but not significant effect which company must strengthen cash position and ability to get profit enhanced in order company ability paying dividends and firms in distributing dividends depends on the firm's strong earnings, so companies should be able to predict the increase in profits earned by the company. Due to the stability of profits earned and the payment of a stable dividend will make investors more interested in investing funds for the company. CASH and GROWTH variables have a negative and insignificant relationship, which means that firms must be able to increase cash position, and assets growth Keywords :Dividend Payout Ratio (DPR), Cash Position (CASH), Return on Assets (ROA Debt to Equity Ratio (DER), Asset Growth (GROWTH)

Pengaruh Rasio Likuiditas dan Solvabilitas Terhadap Kebijakan Deviden Perusahaan Non Jasa Keuangan Di BEI Jakarta

This study aims to find out how the influence of accounting information Current Ratio, Cash Position, Debt to Equity Ratio, Return On Equity and Firm Size on company dividend policies both simultaneously and partially to find out wich accounting information variable is the most dominant influence on deviden policy. After the simultaneous research conducted by the company's liquidity factors, the proxied Current Ratio, Cash Position, profitability is proxied. Return On Equity, leverage proxied by Debt to Equity Ratio and Firm Size affects the Dividend Payout Ratio policy of 9.9%. This means that 99.1% is influenced by other variables outside of this study. Partially only the variables of liquidity and leverage that affect the company's dividend policy, namely: Current Ratio, Cash Position and Debt to Equity Ratio variables. Although it has an influence on the DPR, its influence is weak based on the results of the SPS S output. Keywords: Current Ratio, Cash Position, Debt to Equity Ratio, Return On Equity and Firm Size

Balancing multiple objectives with anarchic manufacturing

Balancing multiple conflicting objectives is a problem faced by all manufacturers, with on-time performance and cash position as two important examples. This study compares the effect of changing demand and priority of conflicting objectives within conventional, centralised, hierarchical systems and anarchic distributed systems, via agent-based simulation and modelling. The anarchic manufacturing system, based on free-market principles, delegates decision making authority and autonomy to the lowest possible level. Its proposed inherent flexibility and self-healing characteristics can accommodate complex scenarios. Decision-makers within the hierarchical system selected an appropriate dispatch rule to improve performance against objectives within its span of control. The anarchic system is shown to trade-off on-time and cash performance as respective objectives change priority, while the hierarchical systems do not. This warrants further investigation for distributed and anarchic systems as a system able to flexibly deal with complexity that also reacts to balance multiple objectives is highly desirable.

Modeling Risk Contagion in the Venture Capital Market: A Multilayer Network Approach

Venture capital plays a critical role in spurring innovation, encouraging entrepreneurship, and generating wealth. As a part of the financial market, venture capital is affected by market downturns and economic cycles, but it also creates bubbles that negatively impact the economy and social stability. Although the venture capital market is a potential source of systemic risk, there has been little study of its contagion risk mechanism, or how the failure of a single market participant can threaten systemic stability. We use a multilayer network analysis to model the risk contagion in a venture capital market when an external shock impacts a venture capital firm or start‐up company in order to understand how risk can spread through connections between market participants and harm total market robustness. We use our model to describe both the direct and indirect channels in the venture capital market that propagates risk and loss. Using real data from the worldwide venture capital market, we find that the venture capital market exhibits the same “robust‐yet‐fragile” feature as other financial systems. The coupling effect of direct and indirect risk contagions can cause abrupt transitions and large‐scale damage even when the turbulence is minor. We also find that the network structure, connectivity, and cash position distribution of market participants impact market robustness. Our study complements other emerging research on measuring systemic risk through multiple connections among market players and on the feedback risk contagion between the financial industry and the real economy.

The Influence of Financial Performance against Stock Prices in Companies Listed in LQ45 Index 2012 - 2016 Period

This study aims to determine the effect of financial performance of each variable on stock price of the companies listed in the LQ45 Index in 2012 – 2016. This type of research used in this research is explanatory research with descriptive research method and correlation. This study used secondary data. The research population comprised LQ45 companies in 2012-2016 consisting of 45 companies. The sample was selected by the purposive sampling technique and 21 companies were included in the research sample. The data analysis technique was panel data regression using the random effect model. The results of the study showed that earnings per share had a significant effect on stock price. Cash position had a significant effect on stock price. Trading volume had a significant effect on stock price. While return on equity, debt to asset ratio and firm size did not have significant effect on stock price. The results of research F-test showed that the model in regression equation is just right. The coefficient of determination (R2) in this study was 0.758096. This means that the contribution of all independent variables was explained the dependent variable was 75.8%, while the remaining 24.2% was explained by independent variables outside the model.

Loose Monetary Policy and Corporate Investment of Manufacturing Firms in the Czech Republic

Abstract The aim of the paper is to evaluate the effects of loose monetary policy on corporate investment of manufacturing firms in the Czech Republic during the period between 2006 and 2015. The main focus of the paper is on the effect of low interest rates on investment activity of Czech firms; additionally, the effects of interactions between interest rate and other firm-specific variables are investigated. The results indicate that corporate investment is positively associated with firm size, investment opportunities, and long term debt. Also, a negative effect of the cash position is found. Further, the findings show that monetary policy is a significant determinant of firm investment activity: when the monetary policy is loose, investment is positively affected. Furthermore, differences in the determinants of investment between highly and low leveraged firms were revealed.

Revolutionizing supply chain management the theory of constraints way: a case study

This research describes in detail an application of theory of constraints (TOC) and its resulting benefits on the supply chain performance of India's largest lock manufacturing company over a period of seven years. Using TOC's thinking process, the core constraints that had limited the company's performance in the areas of production, distribution, supply group and projects were identified and eliminated. TOC's unique approach helped the company achieve a significant reduction in its finished goods, raw material and work-in-process inventories at various levels across the supply chain. The stock-outs and excess in the distribution system nearly disappeared. The existing lead times saw a drastic reduction while the availability of items increased to nearly 100% despite significant decrease in inventory levels in the supply chain. The inventory turns of the distributors and retailers more than tripled and their profitability increased significantly. The overall sales of the company grew nearly three times during the six years post TOC implementation. TOC's holistic approach helped the company to double its profits and improve its cash position during the Great Recession.

CONFIRMATORY FACTOR ANALYSIS INTERNAL DAN EKSTERNAL KEUANGAN, FREE CASH FLOW, DAN RETURN SAHAM PERUSAHAAN MANUFAKTUR GO PUBLIC DI INDONESIA

The negative impact of economic crisis in Asia to internal financial decision included investment decision, financing decision, and dividend decisions. This condition is loser if external factors such as inflation rate, interest rate, and exchange rate are not supported. Negative free cash flow including Economic Value Added and Market Value Added, depreciation of stock return indicate financial distress and reduction of shareholder wealth.The research used of Confirmatory Factor Analysis and the hypotheses are: The influence of Inflation Rate (IR), Interest Rate, and Exchange Rate are significant to External Factor.The influence of Return on Equity (ROE), Fixed Asset Utilization (FAU), Capital Intensiveness (CI), Inventory Intensiveness (II), Receivable Intensiveness (RI), Margin Ratio (MR), Asset Profitability Ratio (APR) are significant to Investment Decision.The influence of Financial Leverage (FL), Short Term Liquidity (STL) and Cash Position (CP) are significant to Financing Decision.The influence of Plowback Ratio (PR) and Return On Fixed Asset are significant to Dividend Decision.The influence of Economic Value Added (EVA) and Market Value Added (MVA) are significant to Free cash flow.The influence of Price Earning Ratio (PER), Dividend Yield (DY), and Capital Gain Yield (Cap.G) are significant to Stock Return.The results of this research are significant influence to external factors, internal financial decision, free cash flow, and stock return; but inventory and receivable intensiveness, dividend yield are not significantly.

A primer on cash management

This paper considers successful cash management, which involves not only avoiding insolvency but also selecting appropriate short-term investment vehicles and increasing cash on hand to improve an investor’s cash position and profitability. The paper discusses the following: the term ‘cash management account’ refers to a type of account offered by brokers, dealers and other financial institutions. This type of account combines a brokerage account with a checking account. Broker-dealers have either their own information technology infrastructure or leverage their custodian’s IT infrastructure to provide cash management facilities to their clients. There are two broad products under the cash management service: •Automated cash management, which provides automated sweep facilities for short-term investment. •Asset management account, which provides retail-banking facilities for using the free cash, along with the sweep facilities. A sweep account is a bank account that automatically transfers amounts that exceed, or fall short of, a certain level into a higher interest-earning investment option at the close of each business day. Commonly, the excess cash is swept into money market funds or Federal Deposit Insurance Corporation (FDIC) deposits. FDIC is a federal institution that offers sovereign deposit options.

ANALISIS FAKTOR YANG MEMPENGARUHI DIVIDEND PAYOUT RATIO: Studi Pada Perusahaan Manufaktur yang Terdaftar di BEI Periode 2012-2015

The dividend payout ratio determines the amount of profit divided into cash dividends and retained earnings as a source of funding. This ratio shows the percentage of company earnings paid to the company's common shareholders in the form of cash dividends. This research was conducted at manufacturing companies listed on BEI. The technique of determining the sample in this study using purposive sampling method. The type of data used is secondary data derived from annual financial statements. Data collection techniques used are documentation techniques. Manufacturing companies listed on the Stock Exchange from 2012-2015 amounted to 143, while companies that fit the criteria in this study as many as 21 companies or 15%. Data analysis technique used multiple linear regression analysis. The result of hypothesis testing from this research shows that firm size and return on assets influence to dividend payout ratio while cash position, ownership, free cash flow, investment opportunity set does not affect dividend payout ratio.

ANALISIS RASIO ARUS KAS DALAM MENILAI KINERJA KEUANGAN PADA PT. PLN (PERSERO) WILAYAH SULUTTENGGO

Cash is one of the most liquid account compared to the other accounts within the company’s balance sheet. The statements of cash flow contains information of actual cash position occurring in the company’s operational activities. By using cash flow ratios, development of the company’s financial performance from year to year can be analyzed. This study aims to determine and assess financial performance based on cash flow ratios in PT. PLN (Persero) Suluttenggo Region, by using a descriptive method with a quantitative approach. The results showed that the state of PT. PLN (Persero) Suluttenggo Region’s financial performance is less good. This is because four of the five cash flow ratios assessed experienced a decrease from the ratio in 2014, and only the ratio of cash flow to interest in 2016 increased from the previous years. Increasing the company’s cash is very important for PT. PLN (Persero) Suluttenggo Region, especially on operational activities which is the main activity of the company’s cash so that in the future, the company’s financial performance will get better.Keywords: cash, cash flow ratio, cash flow statement, financial performance

Assessing the existence of synergistic effect in the consolidated accounting entities in the Czech Republic

The objective of the research was to identify possible positive synergistic effect of concerns. Because of the advantages of the existence of consolidated financial statements, the focus is on the Czech consolidated groups.Consolidated financial statements of 719 groups of accounting entities – concerns in the Czech Republic were studied, i.e., the statistical population consisted of 719 reporting units, which can be considered as the total population of all published consolidated financial statements. Following economic indicators were analyzed to discover the existence of positive synergistic effect: cash position ratio, return on equity, return on sales.Based on the research, it the authors concluded that return on equity revealed dependency between change in the value of the indicator of the parent company and consolidated unit. Values of this indicator are interesting from the investment point of view. They confirm success of capital acquisitions.Cash ratio monitoring revealed an inconsistent environment, unambiguous data correlation between the group data and the individual financial statements of the parent companies.Return on sales indicator showed that consolidated groups had reached higher values of the indicator, i.e., lower total cost ratio than parent companies. Data correlation was found at the low level, i.e., the parent companies did not influence consolidated data.Acquisition companies in the Czech Republic in the period 2008–2013 generated positive financial synergy. For financial indicator of return on equity, dependence between consolidated groups and parent companies was confirmed. Positive financial synergy was found out for all monitored financial indicators.