Cash Position Research Articles

The Influence of Cash Position (CP) and Price Earning Ratio (PER) on Stock Prices at PT. Gudang Garam Tbk Listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 Period

The purpose of this study is to determine how stock prices are affected by Cash Position (CP) and Price Earning Ratio (PER). Associative quantitative research method. The data used in this study are secondary data from the financial statements of PT Gudang Garam Tbk. The purposive sampling method is used to collect samples. Construction and methods for analyzing data, classical assumption tests. Data are processed using Microsoft Excel and SPSS 26 programs. Panel data regression analysis, determination coefficient, and significance test of influence with t-test and F-test were carried out. The results of the analysis show that the correlation value of cash position to stock prices of -0.479 is included in the moderate category with a negative correlation direction. In addition, there is a correlation value between price earning ratio and stock price of 0.199. This value is included in the weak category with a positive correlation direction. The results of the study show that the price earning ratio variable does not affect stock prices, but cash position significantly affects stock prices. The results of the significance test of influence with the F test show that cash position and price earning ratio simultaneously have a large positive impact on stock prices. The analysis of the coefficient of determination (KD) that has been carried out shows that the independent variables, namely cash position and price earning ratio, have an influence of 32.5% on the dependent variable, namely stock price. Other variables not studied by the author contribute 67.5% of the remaining influence

Analyzing the Impact of Cash Position and Return On Equity on the Dividend Payout Ratio in Consumer Goods Companies Listed on the Indonesia Stock Exchange, 2019-2023

company's cash position is an essential factor in determining the dividend. Return on equity, known as own capital profitability, measures the ratio of net profit after tax to the company's own capital. The dividend payout ratio measures the ratio of dividends to earnings for the company. This research population consists of 37 consumer goods industry companies listed on the Indonesia Stock Exchange in 2019-2023. Purposive sampling was used, so the sample size in this study is 18 companies. The research concludes that the cash position and the return on equity affect the dividend payout ratio.

Financial distress analysis for the prediction of corporate bankruptcy – a case study of a public sector company in India

Purpose: the present study examines the liquidity of the firm and its impact on financial distress, which may or may not increase the chances of bankruptcy. The study also analyzes the profitability, cash position, and solvency of the firm. Design/methodology/approach: we use the data of a listed Government manufacturing company and measure the financial distress and probabilities of bankruptcy to test the chances of financial distress during the period between 2015 and 2019. The financial models used for evaluation in the study are the Altman z-score model, Logit Probability model, and Falmur model. Findings: The study found that there was a chance of bankruptcy in the initial years, but later, it survived the bankruptcy. The study also established that the liquidity and solvency of the firm were not up to the standard. Practical implications: the result of the study extends our theoretical understanding and also provides valuable guidelines to reduce the chance of insolvency, bankruptcy, and financial distress of firms and to maintain the proper financial health of the firm. Originality/value: while many empirical studies investigate the relationship between liquidity position and its impact on financially distressed firms in the industry as a whole, but most do not consider the impact of financial distress in an individual firm or company. Most of the published studies use statistical tools for the evaluation of financial distress. This study uses Multiple Discriminant financial model analysis. Multiple Discriminant financial model Analyses are very useful in deciding remedial actions for financial distress problems

The Impact Of Working Capital Management On The Profitability Of Listed Banks: The Ghanaian Economy Experience

The study examined the impact of working capital management practices on the profitability of banks listed on the Ghana Stock Exchange from 2012 to 2022. The study had three specific objectives to determine the relationship between cash conversion cycle and profitability; to determine the relationship between acid ratio and profitability of banks, and to determine the relationship between loan to deposit ratio and profitability of banks. The study was quantitative in nature and used secondary data (audited financial records of banks listed on the Ghana Stock Exchange from 2012 to 2022) of five banks. The data were retrieved purposively. Stata (StataCorp, Texas, USA) was used to analyze the data. The linear regression model was used to analyze the data after Pearson correlation was done. The study found a negative significant association between cash conversion cycle and return on capital employed after controlling for bank size, leverage and debt. This was consistent with study’s hypothesis. This implies that effective cash management is key to commercial banks performance. Also, acid ratio was positive and significantly associated with profitability of banks. Again, the profitability of commercial banks is accounted for by loan to deposit ratio. The study concludes that the profitability of banks is significantly associated with working capital management. That is, when working capital is well managed, commercial banks are better able to meet their short-term commitments as and when they fall due. This enables the commercial banks to operate efficiently without any interruptions. It is recommended that finance managers of commercial banks list on the Ghana Stock Exchange pay external attention to the cash position of their banks at all times.

Web-Based Sales System Using the Cash-Basic Method

Sales are important transactions for companies or agencies because they are the main source of income used to carry out operational activities. In making sales, data processing procedures are needed which are arranged in a certain sequence, which in the accounting system is called a sales procedure. By using the Cash Basis method, companies do not need to make reserves for uncollected cash and can display actual cash position reports. A sales system that will make it easier to manage sales transactions and present sales reports quickly and validly. Web-based applications can be used to manage finances, business and services. Makes it easier to present sales reports both daily and monthly and can minimize errors when information is generated. Good management of information systems will increase efficiency and productivity in decision making by management

The impact of high-pressure political reforms on state-owned enterprises: Evidence from China

Taking the case of high-pressure political reforms including the ongoing anti-corruption campaign in China, we investigate the impact of such reforms on the performance of Chinese state-owned enterprises (SOEs) from the agency problem perspective. We report that before the reforms, SOEs significantly underperform non-SOEs in most performance measures, consistent with the existing evidence. Following the reforms, however, the performance gaps between SOEs and non-SOEs become insignificant or even reversed. Our results of positive impacts of the reforms on overall performance, cost control, operating efficiency and cash positions and their negative impacts on investment levels and efficiency for SOEs are in supportive of our hypotheses based on the agency theory. We further find that the state as SOEs' controlling shareholder is the primary beneficiary of the reforms through higher tax collections from SOEs, though incurring a loss in shareholder stock returns. We also report a few cases of industry heterogeneity in the impacts. Our results lend strong evidence that the political reforms empower the state to deter SOEs' corrupt practices and align their business decisions with the state's political objectives mainly by mitigating agency problems in Chinese SOEs.

The Effect of Fiscal Stress Labels on Local Governments’ Financial Management: Evidence from New York State Fiscal Stress Monitoring System

State government's role in monitoring local governments’ fiscal distress gained importance after several local financial crises. Although many states have implemented state monitoring systems, the effectiveness of these systems has not been well understood. Using the case of the New York State, we conducted a regression discontinuity analysis to examine the effect of fiscal stress labeling on local governments. We find some evidence to support that fiscal stress labels lead local governments to improve their fund balance and cash positions. Specifically, school districts at the early stage of fiscal stress are more responsive to the labels than districts under more severe fiscal stress.

Credit default swaps, investor protection, and audit cost: international evidence

PurposeCredit Default Swap (CDS) trading alters equilibrium interactive monitoring of external corporate monitors due to a possible change in private lenders' incentive to monitor client firms. This study explores how audit fees change in response to CDS trade initiation on client firms and how this effect is moderated by investor protection.Design/methodology/approachWith 6,052 cross-country firm observations, the author conducts estimations in the systems dynamic general methods of moments framework.FindingsThe author documents that audit fees rise on average after CDS trade initiations with and/or without investor protection. Meanwhile, change in auditors' risk perception result in increased audit costs when CDS trade initiation and investor protection interact. The effect of CDS trading on audit fees remain after controlling for firm, audit, and auditor features are robust to different proxies of audit cost.Practical implicationsThe need for firms in high investor protection jurisdictions to initiate CDS trade to implement policies in order to maximize their gains from investor protection activities to lessen the overall impact of any increased audit cost that may arise. Furthermore, CDS regulation may be strategically targeted to lessen the effect of increased audit costs on firms after initiation. This would ensure that the resulting increase in audit cost may not materially impact the cash or profitability position of such firms.Originality/valueThis study is distinct from previous ones by focusing on variation in private lenders incentive to monitor after CDS trade initiation after controlling for possible monitoring by short-term creditors. Given that monitoring is not costless for private lenders and CDS trading on their borrowers causes a change in this cost structure, the author documents how auditors react to such changes in incentive to monitor.

Liquidity management by mutual funds

PurposeThe paper examines how equity mutual funds manage their liquidity. Specifically, the authors investigate what strategies fund managers use to meet investor redemption demand, whether these strategies vary over time, whether different type of funds employ different liquidation practices in response to fund outflows, and whether liquidity strategies impact fund performance.Design/methodology/approachThis study uses a sample of U.S. actively managed equity funds over the period 1990–2019. The authors use three different measures to capture funds' liquidity management practices. The authors examine the relationship between fund liquidity measures and net flow by estimating panel regressions over the entire sample period, on 2 sub-sample periods of different market conditions measured by the magnitude of implied market volatility (VIX), and on 2 sub-samples of funds with different liquidity profiles. The authors also examine the relationship between funds liquidity status and near-term performance through both a portfolio approach and regression analysis.FindingsThe authors find that on average, mutual funds reduce their cash position and the most liquid asset holdings to meet investor redemption demand. Furthermore, the authors find that fund managers choose different liquidity strategies under different market conditions. During highly volatile markets, mutual funds use cash and their most liquid assets to meet redemption demand while maintaining their portfolio liquidity. During low volatility markets, mutual funds rely heavily on cash but less on liquidity assets and tend to increase their portfolio illiquidity. Upon further examination of funds across portfolio liquidity profiles, the authors find that liquid funds increase portfolio liquidity when facing outflows, whereas illiquid funds maintain their portfolio liquidity position. The different liquidity strategies have significant impact on funds' near-term performance. Specifically, liquid funds underperform illiquid funds following the increase in their portfolio liquidity.Originality/valueThis paper contributes to the literature on liquidity management by asset managers by taking a holistic approach to examine funds liquidation practice at the portfolio holdings level. Considering the recent increase in market volatility, mutual fund liquidity management has drawn an increasing share of interest and attention from policy makers, investment professionals, and academia. This study covers both uncertain and stable market states during a long sample period and provides empirical evidence on the flow-induced liquidation decisions by equity mutual funds. In addition, this paper also contributes to the literature on mutual fund performance by providing evidence that funds' liquidity strategies significantly impact their near-term performance.

Analisis Laporan Arus Kas Untuk Menilai Kinerja Keuangan Pada Hybe Corporation

One of the company's asset accounts, cash plays an important role in financing the company's operations. The actual cash position in the company's operational activities is disclosed in the statement of cash flows. Cash flow ratios can be used to assess how an organization's financial performance has changed from year to year. The purpose of this research is to ascertain how the financial performance of HYBE CORPORATION can be evaluated using a cash flow statement using a quantitative descriptive approach. The study findings show that HYBE CORPORATION's financial performance is not stable. If we look at it globally, the cause of this is due to Covid-19 from 2020–2021, and research data also shows an increase in 2022, as seen from HYBE CORPORATION's financial performance based on research on cash flow reports using the cash flow ratio during the analysis period.

Financial Analysis and Market Analysis of Coca-Cola

Coca-Cola company's main themes have been intertwined with social issues such as environmental protection and people's preference for low-sugar products. The company tends to analyze some social phenomena and reflect the research results in new products as much as possible. Because of this, consumers have become more trustful of the Coca-Cola brand. Coupled with Coca-Cola's advertising efforts, Coca-Cola has become a best-selling product in more than 200 countries worldwide. In order to analyze the prospect of Coca-Cola and the potential risks and problems of the company, the article analyzes Coca-Cola's strategy on funding and cash holding and accounting performance based on the company's financial statement. Also, the market valuation, net cash flow, profitability analysis, and SWOT analysis will be done. After a series of analyses, the article's authors found that although Coca-Cola's cash flow has received recessionary effects in recent years, the cash position is still positive from a macro perspective. Meanwhile, the investors need not worry about the company's financial health since the non-current ratio, liquidity, and such indicators point to the company's considerable capacity. Based on the SWOT analysis, the strong brand image helps the company consolidate customer loyalty and enhances market stability. In addition, the authors found that if the company could put more effort into increasing the diversity of its products, more research and innovation would help the appeal of the company's products.

Faktor – Faktor yang mempengaruhi Dividend Payout Ratio pada Perusahaan Pertambangan

The purpose of this research is to examine the factors that influence Debt To Equity Ratio, Return On Asset, Size, Earnings Per Share, Cash Position and Total Asset Turnover towards Dividend Payout Ratio. The object used in this research are Mining Companies which listed on the Indonesia Stock Exchange (IDX) from year 2015 to 2020. The research type of this study is quantitative method. This study uses secondary data. The population for this study is 33 sector Mining Companies listed in Indonesia Stock Exchange from year 2015 to 2020. The data were analyzed using multiple regressions analysis method to determine the model of research. The result of this research is that Debt To Equity and Return On Asset negatively affect the Dividend Payout Ratio. Then Size, Earnings Per Share, and Total Asset Turnover have a positive effect on the Dividend Payout Ratio. Meanwhile, Cash position does not affect the Dividend Payout Ratio.

MIND THE GAAP: DETERMINANTS OF U.S. AIRLINE OPERATING CASH FLOWS

ABSTRACT The airline industry in the United States relies heavily on strong liquidity and solvency positions to fund an array of short and long-term variable and fixed costs ranging from cabin crew salaries to aircraft lease payments and debt service. Against the backdrop of these ongoing needs for cash is the ever-present risk of extraneous and expeditious demand shocks such as pandemics, terrorist incidents, and surging fuel costs. It is thus an imperative that airlines monitor their operating cash flows closely, especially when considering that many financial performance metrics are accrual-based and do not always paint a completely accurate picture of a firm’s true cash position. This study hypothesized and investigated significant determinants of operating cash flows for publicly-traded US airlines and found a statistically significant relationship between airlines operating cash flows and their total assets, income from operations, and market capitalization; which account for a large proportion of the variance in operating cash flows. This study is imperative to helping airlines understand the major determinants of operating cash flows as they look to recover from the pandemic and increase cash flow as well as maintain robust liquidity and solvency positions to fund an array of variable and fixed costs. Keywords Airlines, Operating Cash Flows, Accruals, Pandemic, Liquidity, Solvency

Techno-economic evaluation of hydrogen and ammonia as energy carriers in a multi-generation system

Green hydrogen is suitable for grid-scale energy storage to increase the penetration of renewable energy, and it is also an alternative to fossil fuels. However, it still suffers from storage problems owing to its low volumetric energy density, embrittlement, and very low boiling point. To improve safety and reduce cost, green ammonia has been proposed as a substitute for hydrogen and has attracted considerable attention. In this study, a multi-generation system was proposed to compare green hydrogen and green ammonia as energy carriers. Four scenarios are discussed and the performances under different energy carriers, constant and time-of-use electricity prices, and on-grid and off-grid operations are compared. The optimal planning of the system was formulated as a mixed-integer linear programming problem and was evaluated using supply and demand profiles hourly over a year. The objective was to maximize profitability, which is reflected by the cumulative cash position and payback period. The results revealed that the hydrogen-based system was superior to the ammonia-based system. In the hydrogen-based scenario, the cumulative cash position was 83.43 MUSD and the payback period was 14 years. The cumulative cash position and payback period were 12.78 MUSD and 22 years, respectively, in the ammonia-based scenario. To improve profitability, it is recommended to increase the capacity for hydrogen/ammonia production and reduce the capacity for backup power generation.

Impacto da posição de caixa na performance das empresas brasileiras em períodos de recessão econômica

Abstract Purpose: This study aims to analyze if, during periods of economic recession, the cash position impacts the performance of Brazilian companies. In addition, it seeks to identify if there are differences in the intensity of such relationships for the different sectors in which companies operate. Originality/value: The appropriate management of a company’s cash position is key for the maintenance of its financial health in the long term. This subject is particularly relevant for emerging countries, such as Brazil, considering the track record of frequent economic recessions. Such economic recessions lead to the deterioration of the companies’ operating results and shortage of credit facilities, negatively affecting the companies’ liquidity. In the last decade, studies have been discussing the relevance of the companies’ cash position to improve their performance in periods of financial constraint. Design/methodology/approach: To develop this study, a sample composed of 200 Brazilian companies listed on B3 was used, grouping information from the period between 2013 and 2016, organized in a balanced dynamic panel. Findings: The results obtained through regressions indicate that there is a positive and statistically significant relationship between cash position and the performance of the companies, measured by the return on assets (ROA) – but not by the market to book ratio –, and it was also identified that the sector in which the company operates has a moderating factor on the intensity of such a relationship.

Determinants of the financial liquidity of local governments: Empirical evidence from Poland

The aim of this paper was to examine the financial, economic and social factors as well as spatial relations influencing the level of the financial liquidity of local governments. In the study research, logistic regression models were applied as well as Moran’s I statistic concerning the spatial autocorrelation on the counties in Poland. According to the data for the period 2018-2020, there were estimated regressions for each year and the longitudinal models. The results of the models’ calculation and validation indicated that they might be used to define the level of liquidity in the local public units, since this liquidity influences the local economic condition and the range of public service delivery. The findings show that the predictors of the cash position have both an internal and an external character. Some of these factors appear constantly and result from the situation of the operating part of the local budget. Hence, the fiscal capacity is crucial in this field and the share of own revenues. A debt burden might also determine the analysed liquidity, as well as the size of the unit, which is in line with the presented findings of other scholars, therefore it is important to constrain the growth of the fixed costs and make the local budget more flexible. On the other hand, the share of students in the population is significant due to the fact this influences the scope of public tasks in the field of education. Thus, the local units have real instruments to manage their financial liquidity, which is mainly affected by the transactions-motive and the precautionary-motive. Analysing the spatial structure on the financial liquidity, there is a weak, negative spatial correlation in this field. The study also revealed the phenomenon of ‘outliers’. To sum up, there are specific fiscal and socio-economic characteristics of the local public units affecting their cash positions, which is also influenced by the spatial structure.

Impact of the cash position on the performance of Brazilian companies during periods of economic recession

Resumo Objetivo: O presente trabalho analisa se, em momentos de recessão econômica, a posição de caixa tem impacto na performance das empresas brasileiras. Além disso, busca-se identificar se há diferenças na intensidade dessa relação para os diferentes setores de atuação das empresas. Originalidade/valor: A adequada gestão da liquidez das empresas é fundamental para a manutenção da sua saúde financeira e para a sua sustentabilidade econômica em longo prazo. Esse tema é especialmente importante em países emergentes, como o Brasil, que tem um histórico de frequentes recessões econômicas. As recessões levam à piora dos resultados operacionais das empresas e à escassez de linhas de crédito e, portanto, afetam negativamente a liquidez das companhias. Na última década, tem sido discutida a importância do uso de caixa pelas empresas para melhorar sua performance em períodos de restrição financeira. Design/metodologia/abordagem: Para desenvolver este estudo, foi utilizada uma amostra de 200 empresas listadas na B3, agrupando informações do período de 2013 a 2016, organizadas em um painel dinâmico balanceado. Resultados: Os resultados obtidos por meio das regressões indicam que há relação positiva e estatisticamente significante entre a posição de caixa e a performance medida pelo ROA (mas não pelo market to book). Identificou-se também que o setor de atuação da empresa modera a intensidade dessa relação.

Working Capital Management and Systems Disruption during the COVID-19 Pandemic: Evidence from South Africa

This study provides a critical analysis of working capital management (WCM) research in South Africa during the COVID-19 pandemic. The COVID-19 pandemic has disrupted every aspect of human life, from health to the economic system. Businesses need to respond swiftly to the extreme changes, and adopt a proactive approach to working capital, to ensure a greater chance of successfully overcoming the many challenges. This research uses five stages to investigate WCM research and critically analyses and proposes ways to deal with WCM during each stage. The first stage deals with the global recession of 2008 and thereafter. The second involves managing working capital during the pandemic; thirdly during extreme change; and fourthly post-pandemic. It concludes with managing working capital in the new economic order. Samples of research outputs for each stage were used for critical analysis through a systematic analysis process. The results show that research into WCM after the 2008 global recession mostly focused on how businesses could mitigate the impact of the crisis itself and buffer themselves against future crises. During pandemics, there are three key steps that should be considered by management teams who seek to stabilise their cash positions. When experiencing extreme changes, such as economic downturns and sudden demand or supply shocks, businesses need to cushion them. Post pandemic working capital research focus is on demand volatility and workforce safety. Finally, in a new economic order, digital transformation shifts as well as effective cash management necessary to alleviate volatile supply chains, are important. The global coronavirus pandemic has produced a humanitarian crisis unlike anything before, with sudden and dramatic disruptions across all industries and markets. This research produces some insight into how to manage the short-term finances of a business during these phases. Keywords: working capital management, systematic review, COVID-19 pandemic, extreme change, new economic order

Law, Money Politics, and Public Preferences in Choosing Regional Head Candidates in Ternate City, Indonesia

In Indonesia, there are still people who are registered as permanent voters but have not exercised their voting rights. This study aims to analyze people's preferences in the implementation of simultaneous regional head elections in Ternate City, as well as the efforts made by the General Election Supervisory Agency to suppress the practice of money politics in the 2024 Simultaneous Regional Head Elections in Ternate City. This research used the anthropological approach which studied the behavior or preferences of society during the simultaneous election of regional heads in Ternate City. This study used a sociological research method, where the author carried out direct observations or research in the field to obtain accurate data to answer the research problems. Results showed that voters in Ternate City tend to become irrational voters during simultaneous regional head elections and most respondents (40%) stated that they chose candidate pairs based on cash compensation, projects, and positions. Then, the General Election Supervisory Agency makes efforts to suppress money politics in the 2014 Simultaneous Regional Head Election in Ternate City by applying the participatory monitoring movement.

ANALISIS LAPORAN ARUS KAS UNTUK MENILAI KINERJA KEUANGAN PADA PT ASHAHIMAS FLAT GLASS TBK SIDOARJO

Cash is a company asset that plays an important role in financing the company's operational activities. The cash flow statement contains information about the actual cash position in operating business activities. with the cash flow ratio we can analyze how the evolution of the company's financial performance from year to year. The purpose of this study was to determine the use of cash flow statements to assess the financial performance of PT. Ashhimas Flat Glass Tbk Sidoarjo, using a qualitative descriptive method. The results showed that the cash flow ratio showed a low number, meaning that the financial performance of PT. Ashhimas Flat Glass Tbk Sidoarjo is in bad condition. increasing the company's liquidity is important for PT. Ashhimas Flat Glass, Tbk Sidoarjo especially in operational activities which are the company's main activities so that in the future the company's financial performance will increase