Cash Stream Research Articles

SIGNALLING THEORY STUDY: PREDICT FUTURE CASH FLOWS WITH EARNINGS AND CASHFLOWS IN CONSUMER GOODS INDUSTRIES BEFORE PANDEMIC ERA

This study aims to determine which of the cash flows and earnings have a better ability to predict future cash flows in the two years after the study period. This research was conducted on consumer goods industries listed on the Indonesia Stock Stock Trade in 2016 – 2019 employing a purposive examining procedure. (Dechow, Kothari, & Watts, 1997) found that earnings have a better ability to predict future cash flows than operating cash flows themselves. Another study conducted by (Dahler & febrianto, 2007) utilizing numerous straight relapse models found that operating cash streams for the current year have a better ability than profit in anticipating future working cash streams for both bunches of companies that have positive and negative benefits. Utilizing the same model, this study concludes that earnings have a better ability to predict future cash flows than cash flows themselves. However, cash flows still have a significant ability to predict future cash flows. In expansion, this consider too succeeded in demonstrating that profit has an incremental capacity to anticipate future cash streams.

Determinants of Corporate Cash Holdings in Textile Sector of Pakistan

This study analyzes the impact of tools used for cash holding in the textile sector of Pakistan for the period of 14 years (2005-2018). The tools consist of firm dimension, influence, capital expenditure, expansion opportunity, liquidity, cash stream and cash stream instability and extra expenditure. Unbalanced dynamic panel data is engaged for empirical estimation. For estimation of consistent result active panel information i-e Two-step scheme widespread process of moments is used. System generalized method of moments (GMM) design estimation reveals that compact dimension control, capital expenses, cash stream, cash stream instability and extra dummy affect cash holdings positively while liquidity and growth opportunities affect cash holdings negatively. Lagged cash is used as an instrumental variable and its positive implication (coefficient) reveal that the prior year reserve of cash have a significant impact on the current year and, suggesting these companies have a target level of cash. The academic implication indicates that larger companies in the textile sector retain more cash and easy access to diversify and advance sophisticated technology projects and furthermore will compete in the open market economy.

Role of Latecomers’ Imitation in Overtaking Industry Leaders under Schumpeterian Competition

Since Schumpeter emphasized the importance of innovation for latecomers to leapfrog and overtake industry leaders, strategy research has viewed innovation as the primary impetus for leadership change. On the other hand, imitation in this literature has been portrayed as a strategy by which a latecomer can narrow the gap with, but not surpass, leaders. Thus far, little research has examined whether imitation can help latecomers with disadvantageous positions catch up with and eventually overtake leaders. By employing a computational model, we find that latecomers who pursue innovation alone are unlikely to overtake leaders, whereas latecomers who mix innovation and imitation are more likely to do so. When the latecomer allocates all its R&D budget to innovative R&D, it is likely to run out of capital quickly and be unable to continue to invest in R&D. A mix of innovation and imitation better maintains a steady cash stream, helping the latecomer continue to invest in R&D and thereby leaving room for leapfrogging opportunities.

Between Prudential Regulation and Shareholder Value: An Empirical Perspective on Bank Shareholder Equity (2001-2017)

Abstract We analyse the effects of changes in regulatory capital requirements under Basel III on the dynamic evolution of bank shareholder equity over time. Evidence from managerial and regulatory reports shows that bank shareholder equity stands between micro-prudential regulatory capital requirements and managerial pursuit of equity economising strategies. Shareholder value strategies see shareholders as the equity investment remuneration recipients. Micro-prudential regulators, in turn, address them as equity investment providers. With opposing cash streams, one orientation puts the other to a test. The article visualises this conflict by analysing the actual shareholder contribution to the bank equity position in nine case studies of European financial institutions between 2001 and 2017; our evidence-based financial analysis applies an innovative method to data directly extracted from financial statements, in order to measure this equity position evolution and assess bank equity dynamics in light of revised regulatory capital requirements and persistent assurance of shareholder value thriving in managerial reports. The choice of in-depth analysis of a sample of relevant case studies overcomes the absence of detailed data on changes in bank equity in existing databases.

Between Prudential Regulation and Shareholder Value: An Empirical Perspective on Bank Shareholder Equity (2001-2015)

We analyse the effects of changes in regulatory capital requirements under Basel III on the dynamics of bank shareholder equity. Evidence from managerial and regulatory reports shows that bank shareholder equity stands between Basel III regulatory capital requirements and managerial pursuit of equity economising strategies. Shareholder value strategies see shareholders as the equity investment remuneration recipients. Regulators, in turn, address them as equity investment providers. With opposing cash streams, one concept put the other to a test. The paper visualises this conflict by analysing the actual shareholder contribution to the bank equity position in nine case studies of European financial institutions between 2001 and 2017; our empirical financial analysis applies an innovative method to data extracted from financial statements, to measure these equity position evolutions and assess bank equity dynamics in light of revised regulatory capital requirements and persistent assurance of shareholder value thriving in managerial reports. The choice of in-depth analysis of a sample of relevant case studies overcomes the absence of detailed data on changes in bank equity in existing databases.

LEGAL DILEMMAS OF STREAMING PROPERTY TAX LOGIC

Taxes have the property that they constitute a stream because they are paid by subtracting parts of various other streams generated by business entities. When paying tax, they must pay part of their income - in the case of direct tax or expenditure - in the case of indirect tax; we count both volumes as economic categories called streams. These tax characteristics are called the tax logic stream. The conclusion about the flow of tax is in fact trivial, but fraught with serious consequences - not always noticed. Since the tax itself is a stream, firstly, in its creation as a category of public finances, one should always determine the right reference to the value of some other stream; it should be created in relation to this other stream, for example in terms of income, because only the stream is an effective source of income. The tax is a cash stream and only to the cash flow must be referred.

English

Citrus is one of the most diversified and economically important fruit commodities grown in more than 142 countries in diversified environmental conditions. Potentially it is grown in subtropical to tropical climates between 40° North-South latitude. It has distinctive sensorial, physico-chemical and nutritional characteristics along with unique medicinal value and economic importance. After grapes it stands on 2 rank contributing over 70 million tons per annum and occupies 1 position in terms of trade revenue of fresh fruits (FAO, 2012). Citrus group is most diversified having wide range of cultivars. By inheritance it is the most challenging fruit to improve its genetics or varietal behavior because of complicated breeding and reproductive biology which frequently inhibit its sexual hybridization and zygotic segregation (Grosser et al., 2000). Citrus trees are vigorous, tall and columnar and can be characterized as ever green plants ideally grown in Mediterranean Hemisphere. These are white flowering plants having numerous long, slender, ascending and virtually thorn less shoots. Its dense foliage consists of medium, large broad lanceolate complete leaves. Citrus fruit is non-climacteric in nature and ripens on the tree. It is poorly chilling resistant and unable to tolerate cold climate (<3°C) in the field, however it gives satisfactory response in hot climate regions (Malik, 1994). The productivity and quality of citrus fruit depends upon the implementation of integrated crop management practices in which all biotic (rootstock, cultivar, insect pest and disease management) and abiotic (climate, site, soil, irrigation and nutrition management) factors are necessarily involved (Iglesias et al., 2007). Kinnow Mandarin is the most flavored and aromatic citrus member predominantly grown in Pakistan but is unable to fetch the competitive earning because of certain quality, safety and storage problems. Low quality, poor presentation, high seed number, mono-culture, squeezed supply window and zero certified nonconventional (integrated and organic) production can be the potential factors of its poor penetration and low earning in high value markets (PHDEC, 2014). Most of the intimidating factors can be addressed and resolved effectively through transitioning the conventional production system into integrated and organic (Ioannis et al., 2004). Non-conventional such as integrated and organic Kinnow production can be the easiest and shortest approach to improve fruit yield or quality, product safety and ultimately high cash stream in national revenue. In current scenario, in Pakistan very low per unit earning has compelled growers to replace the old conventional farming with some advance Pak. J. Agri. Sci., Vol. 53(1), 7-15; 2016 ISSN (Print) 0552-9034, ISSN (Online) 2076-0906 DOI: 10.21162/PAKJAS/16.4953 http://www.pakjas.com.pk

Branding the Right: The Affective Economy of Sarah Palin

Branding the Right:The Affective Economy of Sarah Palin Laurie Ouellette (bio) In April 2010, Saturday Night Live announced the launch of the Sarah Palin Network. Impersonating the former Alaska governor and 2008 Republican vice presidential candidate, comedian Tina Fey pitched the new television channel as the logical extension of her commentator gig with Fox News and her TLC reality program, Sarah Palin's Alaska. Poking fun at Palin's hokey right-wing populism and media saturation strategies, Fey promised TV viewers propagandistic made-for-television movies, game shows like Tea Party Wheel of Fortune and Are You Smarter Than a Half-Term Governor?; reality competitions like Dancing with the Real Stars: America's Small Business Owners; a renegade cops-and-robbers drama featuring Todd Palin on a snowmobile; and a public affairs program geared to ordinary people called Elites, in which C-SPAN-like footage of "smarty pants experts" is redubbed with the teacher's monotonous voice from the Charlie Brown cartoons. The hilarity of the skit hinged on the uncanny possibility of an actual Sarah Palin Network. Given the extent to which Palin's overnight celebrity was channeled into a lucrative brand across print, television, film, and digital media platforms, the prospect of an entire network devoted to perpetuating—and profiting from—the unlikely politician from Wasilla is not so far fetched. Since entering the national spotlight as John McCain's running mate, Palin has built a pop culture franchise around her campaign image of an average hockey mom whose approach to how the nation should be governed combines kitchen-table economics and the rugged self-reliance ascribed to the Alaskan frontier. From the outset, her self-billing as a Washington outsider has been fashioned against the malfeasance of the "media elite." Upon accepting the vice presidential nomination at the 2008 Republican National Convention, Palin dismissed journalists who questioned her qualifications as "snobs who look down their noses at ordinary Americans and are out of touch with [End Page 185] their major concerns."1 In subsequent speeches, interviews, and tweets, she pitched herself as an authentic representation of "real" America against the "lamestream" media and pretentious, big-city elites, who favor big government and other evils. To be sure, the media also perpetuated this spin on Palin, playing up her folksiness and articulating her deficiencies as a professional ruler in class-coded cultural and geographical terms. Venues from SNL to the New York Review of Books have delighted in reiterating Palin's nasal working-class accent, grammatical mishaps, chain-store tastes, carnivorous appetites (she's fond of moose and caribou), and penchant for "faux-genteel cuss words like dang, heck, darn, geez, bullcrap, and bass-ackwards."2 Palin ups the ante by channeling the mockery into the purported authenticity of her homegrown political brand. In fact, while she defines her political persona in opposition to the media elite, Palin's enduring visibility since the 2008 election evidences a strategic mastery of both old and new media forms. Well before Palin disappointed her fans by declining to run in the 2012 presidential primary, a long exposé in New York magazine called "The Revolution Will Be Commercialized" suggested that her motivation for branching into popular media was largely financial. Accompanied by graphics that render Palin in the image of Ford, Pepsi, Chevron, and other brand-name logos, the article explains that Palin turned to memoir writing because she was earning $125,000 per year and was plagued by debt; she eventually landed a $7 million deal with HarperCollins. Her best-selling book, Going Rogue: An American Life (2009), was followed by America by Heart: Reflections on Family, Faith, and Flag (2010), and former campaign aides were hired to plan book tours with "all the trappings of a national political campaign."3 When the demands of her new cash stream clashed with her day job as governor (and with Alaska's public-sector ethical regulations), she resigned. When Palin subsequently signed a three-year contributor contract with Fox News worth an alleged $1 million per year, she set up a television studio in her home in Wasilla, Alaska. Shortly thereafter she coproduced Sarah Palin's Alaska with Mark Burnett of Survivor...

The Shadow Banking System and its Legal Origins

The global financial crisis cannot be understood without closely analyzing the development and the failure of the shadow banking system. Shadow banking, in turn, cannot be understood without examining how law shaped it. This article provides a definition of the shadow banking system and describes the critical role law and legal change played in shaping it. The shadow banking system describes a web of financial instruments (asset-backed securities, credit derivatives, money market mutual funds, repurchase agreements) that connected commercial and household borrowers to investors in capital markets. This system differs, however, from traditional bond markets and is marked by six features: - institutions serving a critical intermediation role;- the pooling of financial assets and risks;- “structuring,” or the unbundling and re-bundling of cash streams and risks from financial assets;- maturity transformation;- the creation of assets with theoretically low risk and high liquidity that have many of the features of “money”; and- opacity.This system provided many of the core economic functions of banking, including supplying credit while offering investors theoretically liquid and stable investments (similar to bank deposit accounts). Yet the system escaped bank regulation. This system ultimately experienced the same types of liquidity and solvency crises as banks, causing massive economic damage. The article explores how regulatory arbitrage, deregulation (broadly construed), and legal subsidies midwifed the birth of the shadow banking system and fostered its growth.

AMC Non-Performing Assets Disposal with CDO in China

With analyzing the characteristics about Asset Management Company non-performing assets (NPAs) disposal, this article discussed the AMC’s non-performing assets with securitization disposal. Simultaneously, the AMC assets CDO multiple tranches structure was designed according to AMC reality in China. And the key problems in the CDO structure such as cash stream, credit lifting were discussed. Finally, the Monte Carlo method was applied to price the AMC’s non-performing assets CDO, which offered a guidance of the AMC’s non-performing assets disposal in practice theoretically.

Analisis Kelayakan Pendirian Proyek Stasiun Radio Guna Mengetahui Profit Maksimum

Elegibility study is research about could or not a invest project can do well and can give profit level which is suitable or can be use economically. To determine how competend or not the building a project that is seen from some of aspects which support the project building and this project can be success. The research object here was PT. Radio Mitra Suara Batu place in Wukir Number 4 Batu City. This company was active in information service which wish to conduct extention of business by building a new station with different format than other radio station there ever made by this company. Therefore, before company built a new radio station it must do some elegibility study first. In order to not have come too par unintentionally big investing capital for the project which due not profit. Aspect to be studied for example: First, market aspect which determine market segmentation and market plan. Second, technical and production aspect which determine project location, production capacity, needed facility, kind of technology that is use and project layout. Third, management aspect which determine organitation structure, job description, employee needed and work scheduling. Fourth, finance aspect which determine total invest, remains value, decrease value, earnings projection, incoming ang outgoing cash stream and Rate of Return value as standart of project elegibility. Fifth, industrial environmental aspect which determine which supplier one to be chose and how emulation industrially is similar. Sixth, economic, social and political aspect will be known impact from project building and way to overcome. Seventh, aspect of law will support legality of building of project from facet punish. To maximize earning using Linier Programming method. Sum up earnings with Linier Programming method is Rp6,222,420.00/day and Rp186,672,600.00/month and this value there are difference Rp2,400,00/month that is smaller than manual calculation.

Risk-adjusted value allocation for (non-traded) assets with performance ratios

We propose a new valuation principle for possibly non-traded assets based on an implicit definition of a benchmark. The valuation principle allows taking (default and shortfall) risk constraints explicitly into account. The resulting risk-adjusted value functional is monotonic, positively homogeneous, partially concave and allows for an additive allocation of risk-adjusted values of non-traded assets in a portfolio. The valuation principle is applied to the problem of hedging and pricing in incomplete markets. Furthermore, accounting for non-traded assets is considered and we derive a risk-adjusted balance sheet for non-deterministic cash streams.

The Positive Net Present Value: An Erroneous Criterion? A Note (La Valeur Actuelle Nette Positive: Un Critere Errone? Une Note)

This note questions the significance of a positive net present value. It presents the problem of non-diversifiable risk and the consideration of specific (but non-diversifiable) risk in investment decisions. After highlighting the significance of this criteria, we will try to shed some light on this matter, especially by suggesting a correction of specific risk in cash streams.

The Determinations of Equity Value with Stochastic Term Structure of Discount Factors

This paper discusses equity valuation on a per share basis and in a stochastic term structure of discount factors framework. The value of equity has been explicitly expressed in a no-growth component, which is proxied by either capitalised next period earnings or open book value, and growth components, which links short term performance of book value and growth rates of earnings performance adjusted by market systematic risk. Consistent with asset pricing theory discounting risk-adjusted future cash stream bases on short term interest rate rather than risk-adjusted cost of capital. The growth value is shown to be a function of retention rate and persistence of returns on earnings retained and the market risk. The constant dividend growth model and Ohlson and Juettner (2000) are special cases if one assumes that the interest rate is constant and the future investment opportunities have the same risk as the existing business. In a constant earnings growth setting, it is shown that only when return on equity is greater than a risk adjusted rate of return should the firm increase the retention rate, and the implied risk premium is positively linked to the systematic market risk in a nonlinear fashion.

Coherent risk measures and good-deal bounds

The relation between coherent risk measures, valuation bounds, and certain classes of portfolio optimization problems is established. One of the key results is that coherent risk measures are essentially equivalent to generalized arbitrage bounds, named “good deal bounds” by Cerny and Hodges (1999). The results are economically general in the sense that they work for any cash stream spaces, be it in dynamic trading settings, one-step models, or deterministic cash streams. They are also mathematically general as they work in (possibly infinite-dimensional) linear spaces.

The library creates cash stream by publishing own books

The library creates cash stream by publishing own books

Coherent Risk Measures, Valuation Bounds, and (My,p)-Portfolio Optimization

This paper presents a general theory that works out the relation between coherent risk measures, valuation bounds, and certain classes of portfolio optimization problems. It is economically general in the sense that it works for any cash stream spaces, be it in dynamic trading settings, one-step models, or even deterministic cash streams. It is mathematically general in the sense that, the core results are established for (possibly infinite-dimensional) linear spaces. The valuation theory presented seems to fill a gap between arbitrage valuation on the one hand and single agent utility maximization or full-fledged equilibrium theory on the other hand. Coherent valuation bounds strike a balance in that the bounds can be sharp enough to be useful in the practice of pricing and still be generic, i.e., somewhat independent of personal preferences, in the way many coherent risk measures are somewhat generic.

Higher Order Forward Rate Agreements and the Smoothness of the Term Structure

This paper proposes linear higher order conditions on the term structure that allow to compute valuation bounds for any deterministic cash stream. Starting from bounds on the forward rate curve and its derivatives, which are nonlinear in the discount factors, we derive linear conditions that are only slightly less restrictive than the nonlinear conditions. The linearization of the term structure constraints has two advantages. First, the valuation bounds can be computed by highly developed LP solvers. Second, the constraints have an economic meaning as auxiliary cash streams. Thus, price discrepancies can be (1th'Sily translated into profitable trading strategies. Depending on the choice of the constraints on the forward rate curve the valuation bounds for cash streams can be very wide or very close. Arbitrage bounds are a special case of our general valuation bounds. On the other end of the extreme, the valuation bounds on the term structure itself behave like quadratic splines in the forward rate curve if the third order parameters are chosen in a restrictive way. The higher order conditions on the term structure are related to extremal event statistics of short-term interest rates. This puts the resulting valuation bounds conceptually dose to risk measures like value at risk. In fact, the proposed method is an example of a coherent risk measurre in a sense slightly more general as in the seminal paper by Artzner, Delbaen, Eber, and Heath (1998). Methods that calibrate a single price system to observed prices abound. Needed are valuation bounds that are based solely on economic assumptions. The valuation bounds under the linear higher order conditions on the term structure generalize arbitrage bounds and provide a sharper method when the arbitrage principle is too weak.

Higher Order Forward Rate Agreements and the Smoothness of the Term Structure

This paper proposes linear higher order conditions on the term structure that allow to compute valuation bounds for any deterministic cash stream. Starting from bounds on the forward rate curve and its derivatives, which are nonlinear in the discount factors, we derive linear conditions that are only slightly less restrictive than the nonlinear conditions. The linearization of the term structure constraints has two advantages. First, the valuation bounds can be computed by highly developed LP solvers. Second, the constraints have an economic meaning as auxiliary cash streams. Thus, price discrepancies can be easily translated into profitable trading strategies. Depending on the choice of the constraints on the forward rate curve the valuation bounds for cash streams can be very wide or very close. Arbitrage bounds are a special case of our general valuation bounds. On the other end of the extreme, the valuation bounds on the term structure itself behave like quadratic splines in the forward rate curve if the third order parameters are chosen in a restrictive way. The higher order conditions on the term structure are related to extremal event statistics of short-term interest rates. This puts the resulting valuation bounds conceptually (albeit not mathematically) close to methods like value at risk. Methods that calibrate a single price system to observed prices abound. Needed are valuation bounds that are based solely on economic assumptions. The valuation bounds under the linear higher order conditions on the term structure generalize arbitrage bounds and provide a sharper method when the arbitrage principle is too weak.

Financial Systems in Continuous Time: Modelling Cash Stream

Despite the emphasis on securities rather than on cash streams in general financial theories, the concept of cash stream remains useful in modelling realistic financial decision problems. The paper presents a unified view on cash stream modelling, valid in both continuous and discrete time, in the standard analytical framework of Schwartz distributions. Abstract cash stream spaces are defined by stipulating certain general properties, and are then identified as some well-known Lebesgue lattices of measures on the real line. All basic financial notions such as discounting or preference ordering carry over to the general case, and the linear decision problems become instances of infinite-dimensional linear programming.