Changes In Cash Flows Research Articles

Unintended consequences of discrimination litigation caps

AbstractOn July 14, 1992, the U.S. Equal Employment Opportunity Commission (EEOC) implemented a policy that caps punitive damage payouts from discrimination litigation at different employee counts allowing for a “difference‐in‐discontinuities” design. I find that these kink points incentivize firms to restrict their number of employees, which reduces their maximum discrimination litigation exposure to between 40% and 60% of their yearly median revenues. In turn, firm growth decreases for firms below these EEOC thresholds after the implementation of the policy. These firms reduce financing and are not motivated to decrease growth by relative changes in cash flows from discrimination risk exposure.

FINANCIAL STRENGHT ASSESMENT OF FOOTBALL CLUPS: AN INTERNATIONAL COMPARISON

The aim of this research is to evaluate the financial strengths of football clubs comparatively on an international scale. In this regard, the financial strengths of 24 football clubs from six national leagues affiliated with the Union of European Football Associations (UEFA) were examined using the Piotroski F-Score method. During the analysis process, nine financial indicators under the categories of profitability, liquidity-leverage, and operational efficiency for the period 2019-2023 were calculated and scored from 0 to 9. The research concluded clubs exhibit moderate financial strength, indicating investable profile. In terms of average F-Score values, Bayern Munich and Sporting Lisbon emerged as the most successful clubs, while Lazio and AS Roma were identified as the least successful. The evaluation of the nine financial indicators revealed changes in paid-up capital, earnings quality, and cash flows from operating activities as the most successful. Conversely, return on asset, changes in leverage, and changes in gross profit margin were the least successful financial indicators.

Factors that Can Support and Influence the Financial Performance and Value of Go-Public Companies in Indonesia

Introduction: The company's brand equity is one of the important factors to increase the company's cash flow in the future. This study aims to analyze the effect of brand equity on cash flow, the effect of brand equity on capital structure, the effect of cash flow on firm value, and capital structure on firm value. Literature Review: Research by Mendoza, (2017), Skalický, (2016), Sivric et al (2019), Guentherb and Guentherb (2019) state brand equity has a direct relationship with capital structure. Singh and Bansal (2016) examined the impact of financial leverage on firm profitability and firm value. Method: The data analysis method used in this study uses the PLS model and data processing using the WarpPLS (Partial Least Square) program. The study used a sample of consumption subsector companies listed on the Indonesia Stock Exchange in 2015-2019 and met the requirements for calculating the brand value of the Hirose method (2002). Results and Discussion: brand equity has a significant effect on cash flow; brand equity has a significant effect on capital structure, cash flow has an insignificant effect on firm value, capital structure has a significant effect on value. Conclusion: The findings of increasing brand equity have an influence on the company's cash flow which is characterized by an increase in NCFOSA and a decrease in the company's FLD. Increasing brand equity has an impact on capital structure. Changes in cash flow have no effect on firm value. Increased debt in the capital structure has an impact on firm value.

THE ABILITY OF GROSS PROFIT, OPERATING PROFIT, NET PROFIT, AND WORKING CAPITAL IN PREDICTING FUTURE CASH FLOWS (Empirical Study of Companies Listed in the Jakarta Islamic Index)

Users of financial statements make forecasts regarding the future situation of the entity in order to anticipate opportunities and identify potential risks. Gross profit, operating profit, net profit, and working capital are important pieces of information for investors because they allow for the prediction of future cash flows. However, for companies listed on the Jakarta Islamic Index, there is instability in gross profit, operating profit, net profit, and working capital, which leads to changes in cash flow. The research is of an associative quantitative nature, with a research population consisting of 50 companies listed on the Jakarta Islamic Index from 2019 to 2022. By using a purposive sampling technique, a sample of 24 companies was obtained, resulting in a total sample size of 96 samples over the span of 4 years. The data used is secondary data, collected through the official IDX website at www.idx.co.id. The analytical method employed is multiple linear regression. The findings of the study indicate that gross profit and working capital have a significant impact on the ability to predict future cash flows. However, operating profit and net profit do not possess the same predictive power. Furthermore, the study reveals that gross profit, operating profit, net profit, and working capital collectively contribute to the prediction of future cash flows with an impressive explanatory power of 89.3%. Keywords: gross profit, operating profit, net profit, working capital, future cash flow

Economic and statistical methods of estimating and forecasting the enterprise production activity and realization of oilseed crops

Enhancing food security of Kazakhstan, increasing food products is one of the priority tasks of the country’s economic policy. The processing industry is one of the most important links of the agro-industrial complex as a whole, being an integral part of the country’s food security. The processing industry provides the population with quality food products, income from the sale of products, as well as jobs. Therefore, it is necessary to pay special attention to its qualitative development and efficiency improvement by means of economic and statistical methods of evaluation and forecasting of enterprise activity. The research was performed at the micro level in the districts of Kostanay region. A number of typical farms of the region engaged in production of grain legumes and oilseed crops, processing of oilseed crops and sale of finished products were involved. The article considers economic and statistical methods of estimating the change in cash flows from the sale of oilseed linen, as well as forecasting the transformation of sales revenue up to 2026. The work presents several new aspects of the study, including adaptation to government subsidies and market demand, characterisation of the life cycle stage of the company, application of statistical analysis, and a detailed economic sense and methodological calculation of the company’s financial health. The following research methods were applied in the article: statistical method of dynamic series, interval level of the series of dynamics of cash receipts, absolute growth at prices and base values, considered the impact of unaccounted factors, growth and acceleration rates by chain and base method. As a result, the data of the study showed the instability of changes in cash from the sale of oilseed linen.

Analisis Prediksi Praktik Shenanigans Pada Laporan Keuangan

This study aims to show directly how changes in receivables, revenue manipulation and audit committee effectiveness impact operational cash flow in publicly traded state-owned companies listed on the Indonesia Stock Exchange from 2020-2022. To understand the correlation between independent and dependent variables, this research uses quantitative methods. This study uses secondary data in the form of financial reports of publicly traded state-owned companies listed on the IDX in the 2020-2022 period by applying a purposive sampling method. There are 16 companies that can meet the criteria, resulting in a sample size of 46 data. The results of this research prove that the change in receivables variable has a negative and significant effect on operational cash flow. Meanwhile, income manipulation has a positive and significant effect on operational cash flow, and audit committee effectiveness has a positive and significant effect on operational cash flow.

Pengaruh Laba Kotor, Laba Operasi, dan Laba Bersih terhadap Perubahan Arus Kas

This study aims to provide empirical evidence regarding the effect of gross profit, operating profit, and net profit on changes in cash flow by examining each variable. This type of research is associative research with a quantitative approach method. The population in this study are companies listed on the Bursa Efek Indonesia in 2019-2021. The sample in this study was collected based on the purposive sampling technique, totaling 295 companies. The data source comes from www.idx.co.id. Data analysis technique using multiple linear regression. The results of this study are: (1) Gross profit partially has a significant effect on changes in cash flows in companies listed on the Bursa Efek Indonesia seen from the t-Statistic value -3.378030 with a Prob value. 0.0009 <0.05, (2) Operating profit partially has a significant effect on changes in cash flows in companies listed on the Bursa Efek Indondesia seen from the t-Statistic value of 3.673210 with a Prob value. 0.0003 <0.05, (3) Net profit partially has a significant effect on changes in cash flows in companies listed on the Bursa Efek Indonesia seen from the t-Statistic value of 2.349851 with a Prob value. 0.0197 < 0.05, (4) Simultaneously, gross profit, operating profit, and net profit have a significant effect on changes in cash flows in companies listed on the Bursa Efek Indonesia seen from the value of the F-statistic 9.830041 with the value of Prob(F-statistic ) 0.000000 < 0.05. Through the description that has been mentioned, it can be concluded that gross profit, operating profit, and net profit partially each have a significant effect on changes in the company's cash flow, and simultaneously gross profit, operating profit, and net profit have a significant effect on changes in cash flow company.
 Keywords: Gross Profit, Operating Profit, Net Profit, Changes in Cash Flow.

Quantifying the financial value of building decarbonization technology under uncertainty: Integrating energy modeling and investment analysis

The built environment accounts for approximately 40% of global emissions. The evaluation of returns linked to investments in building decarbonization is impeded when confronted with uncertainties surrounding future energy prices, building emission regulations, and real estate market conditions. This paper develops an integrated framework that combines energy modeling with investment analysis to support the adoption of decarbonizing technologies under a context of uncertainty. The integrated framework includes projections of costs and benefits associated with the adoption of technology (i.e., changes in rental cashflows, vacancy rates, maintenance and energy costs) under a wide range of potential pathways of the energy markets and regulatory environment, and local real estate market demand for green buildings using Monte Carlo simulations. Additionally, this paper develops the approach to investigate the potential value of flexibility in designing for building electrification (i.e., the ability to fully electrify gas heating systems at a later year). We illustrate the use of this approach in a case study of a new office building in New York City, faced with design choices between natural gas and electrified heating systems. We consider 10,000 scenarios changing future greenhouse emission penalties, investments in the local electric grid, local real estate market conditions and energy prices. In approximately 60 percent of simulations, the most profitable decision for the building owner is to adopt a natural gas-powered heating system. However, adopting a building design that provides a building the flexibility to fully electrify at a later date is more profitable than a natural gas-heating building in 96 percent of scenarios. A sensitivity analysis shows that the most influential parameter in the valuation of a design option is the size of the green premiums associated with improved energy efficiency.

Pengaruh Laba Kotor, Laba Operasi, dan Laba Bersih terhadap Peruhaban Arus Kas: Studi Empiris pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2021

This study aims to provide empirical evidence regarding the effect of gross profit, operating profit, and net profit on changes in cash flow by examining each variable. This type of research is associative research with a quantitative approach method. The population in this study are companies listed on the Bursa Efek Indonesia in 2019-2021. The sample in this study was collected based on the purposive sampling technique, totaling 295 companies. The data source comes from www.idx.co.id. Data analysis technique using multiple linear regression. The results of this study are: (1) Gross profit partially has a significant effect on changes in cash flows in companies listed on the Bursa Efek Indonesia seen from the t-Statistic value -3.378030 with a Prob value. 0.0009 <0.05, (2) Operating profit partially has a significant effect on changes in cash flows in companies listed on the Bursa Efek Indondesia seen from the t-Statistic value of 3.673210 with a Prob value. 0.0003 <0.05, (3) Net profit partially has a significant effect on changes in cash flows in companies listed on the Bursa Efek Indonesia seen from the t-Statistic value of 2.349851 with a Prob value. 0.0197 < 0.05, (4) Simultaneously, gross profit, operating profit, and net profit have a significant effect on changes in cash flows in companies listed on the Bursa Efek Indonesia seen from the value of the F-statistic 9.830041 with the value of Prob(F-statistic ) 0.000000 < 0.05. Through the description that has been mentioned, it can be concluded that gross profit, operating profit, and net profit partially each have a significant effect on changes in the company's cash flow, and simultaneously gross profit, operating profit, and net profit have a significant effect on changes in cash flow company.
 Keywords: Gross Profit, Operating Profit, Net Profit, Changes in Cash Flow

Pengaruh Arus Kas, Laba, Arus Kas Investasi, Arus Kas Operasi dan Arus Kas Pendanaan (Literature Review Manajemen Keuangan)

An investor in investing always expects high stock returns. Therefore, investors must be able to assess which companies have good performance. Stock returns are a matter of great concern to investors considering the level of profit that investors will enjoy from their investments. Financial reports, especially those related to information on changes in cash flows, accounting profit, investment cash flows, funding flows and operating cash flows are important information that investors can use to assess company performance. This study aims to determine whether the information for investors to make investment decisions is reflected in the stock returns to be obtained. This study is also intended to determine which performance measures have the most significant influence on stock returns. Information that is often used by investors in considering investment decisions in increasing stock returns is net income, cash flow, funding and operating cash flow. Writing this article aims to build a hypothesis of the influence between variables to be used in further research. This article discusses the effect of stocks on cash flow, accounting profit, operating cash flow, investment cash flow and funding cash flow, an introductory literature study on financial management.

Financial statements fraud identifiers

Contemporary research among fraud professionals indicates that organizations lose 5% of revenues from fraud every year which makes the research in this area and the derivation of fraud detection models very important. The purpose of the article is to develop a new accounting tool that will help companies and investors in prompt fraud detection and prevention which can finally result in the preservation of financial stability as well as more efficient capital allocation. In this context the main objective of the research is to test the significance of some financial statements positions’ relations that has not been used in the previous research using the dataset from SEC AAERs presented and included in Bao et al.’s research as well as to combine them with existing ones and consequently develop new financial statement fraud detection model. Another objective consists of presenting some of the most significant and contemporary research in the field of financial statement fraud detection models and comparing their quality using the ROC analysis. Research results were generated by using the SMOTE algorithm and logistic regression analysis on the dataset of 146,045 cases for a period from 1982 to 2014 and point out five independent variables used by Bao et al. The financial statement fraud detection model comprised of change in free cash flow, percentage of soft assets, sale of common and preferred stock, change in cash sales, and change in receivables shows a sufficient level of discriminant power with 67% area under ROC curve. The model derived could be used as a starting point for fraud detection preventing the significant losses the company and stakeholders could face.

ORGANIZATION OF ACCOUNTING AND ANALYSIS IN THE MANAGEMENT OF HIGHLY LIQUID ASSETS OF LARGE ENTERPRISES

The work provides a theoretical justification of the theoretical and methodological approaches to the accounting and analytical display of highly liquid assets. Based on the materials of reliable accounting reports of a large chemical enterprise, the basic principles of accounting organization and accounting policy of JSC "DNIPROAZOT" were determined. The accounting form (automated) and accounting registers are characterized. The formation of accounts for accounting of assets made it possible to establish the movement of assets and their transformation from medium liquid assets to highly liquid assets. Thus, journals of economic transactions for December 2020 were created based on the materials of the accounting registers. The main stages of the accounting and analytical display of the movement of assets (medium liquid) at the enterprise have been established. In particular, the reflection of the formation in the accounting of finished chemical products is presented: the a priori stage of such formation is the write-off of production stocks in production, having previously recorded them as purchased from suppliers. The structural and logical scheme of the accounting process made it possible to objectively form and evaluate the transformation of assets from production costs to a certain condition in the form of finished products on account 261 and to follow the moment of formation of highly liquid assets. In the process of forming a journal of business operations for the sale of finished products, the principles of forming accounts receivable and turning it into a highly liquid asset in the form of cash flow are determined.
 In the work, a study of the assessment of dynamic changes in cash flows based on the financial statements of a chemical enterprise was carried out. Characterized receipts and expenditures of cash flows (highly liquid assets) for the period 2018-2020. The expediency of the analysis of dynamic and structural changes in cash flows has been proven. The dynamics and structure of spending cash flows were evaluated. Certain regularities have been established regarding the efficiency of cash flows at a large chemical enterprise. Thus, analytical conclusions were made regarding the liquidity and solvency of cash flows for various types of activities: operational, financial, and investment. A certain assumption regarding the methodology of cash flow analysis (highly liquid assets) is substantiated and the need for its improvement is proven.

Will Predicting the Change in Cash Flow from Operations in the International Corporations Indicate Secured Financial Growth?

Will Predicting the Change in Cash Flow from Operations in the International Corporations Indicate Secured Financial Growth?

DYNAMIC ECONOMIC AND MATHEMATICAL OPERATING MODEL OF FINANCIAL FLOWS OF A COAL PRODUCER

Given the challenging conditions of sanctions and uncertain external economic environment, it is essential for coal producers to project their economic health in the short and long term. This purpose requires to have forecast tools with respect to the development of an enterprise and its future financial flows under various initial conditions and the impact of negative external environment factors. This study aimed to develop a tool for dynamic assessment of financial flows of a coal producer in form of an economic and mathematical operating model. The framing methods for this model are based on the cash flow pattern of an enterprise, including proceeds from the sale of products, receivables, payables and production costs, as well as loan repayments. The model accounts for the time value of money and is dynamic, as it allows to estimate the balance of cash flows for several periods (months, quarters, years) ahead. The dynamic model is based on the assessment of the input financial parameters of a coal producer, the determination of the rules of cash flow management, the calculation of the changes in cash flows for the period concerned and the calculation of the financial parameters of a coal producer at the end of the period under consideration. The model allows to estimate the financial flows of a coal producer for several future periods with different input data. The dynamic model allows to assess the financial condition of a coal producer against the background of the changing financial flow management rules in conditions of uncertainty and Western and US sanctions. The application of the model in planning the performance of coal producers will optimize financial flows and create an effective plan of the enterprises’ activities in complex and unstable economic conditions. The proposed model may be further developed to clarify and account for disrupting factors and to computerize dynamic modeling.

Assessment of Economic Efficiency, Effects and Risks of Digitalization Projects of Garment Industry in Russia

To increase production efficiency at industrial enterprises, various digital technologies have recently been used, which have various effects: reduction of time, money, material costs, reduction of the production cycle, productivity growth. This study aims to analyze and evaluate the efficiency of the digitalization of garment production, determine the effects and risks of a digitalization project. The digitalization project was carried out using the radio-frequency identification technology to monitor the sequential processes of garment making.This study tests a hypothesis that the use of digital technologies leads to a reduction in time losses and an increase in labor productivity. During the study, the time of the production process was measured. Further on, the possible reduction of time losses due to the introduction of digital technology under the conditions of existing production capacities is calculated. Time losses were used for additional production, which leads to a change in the company's cash flows. As a result, the performance indicators of the investment project were calculated, and its risks were assessed using sensitivity analysis.The theoretical significance is in determining the economic indicators that are affected by the introduction of digital technology in the garment industry. The introduction of the radio-frequency identification technology makes it possible to monitor the parameters of the production process, which helped to reduce time loss by 50%, decrease the labor intensity of the product and increase the productivity of the enterprise's personnel by 30%. The implementation of digitalization projects has risks for companies. To minimize possible risks that could arise, sustainable mitigating solutions were proffered.

Introduction to the Industry Audit

In the article, the author considers the following topics: introduction to the audit of accounting financial statements in a construction organization, description of the role of audit in ensuring the correct assessment of the financial activities of the organization. Features of accounting in a construction organization, overview of the main elements of accounting statements, such as balance sheet, profit and loss statement, statement of changes in capital and cash flow. The importance of the audit approach in the process of auditing financial statements, explaining why the audit approach is important for achieving audit objectives. Accounting audit techniques in a construction organization, review of various methods that auditors can use to determine the reliability of accounting statements. Processing of audit results, consideration of what to do when an auditor discovers errors or deficiencies in accounting statements, discussion of measures taken to improve financial reporting in the future, current trends in accounting audit in a construction company. The study of innovative methods and approaches used in the audit of financial statements of organizations focused on construction.

The Impact of Stock Price Analysis on Cash Flow, Sales Growth and Net Income on a Company’s Performance: A Survey Study on Coal Mining Companies Listed on Indonesia’s Stock Exchange

This study focuses on cash flow, sales growth and net income as the main aspects investigated to determine how the three aspects impact stock prices within the studied companies. Based on this point, this paper sought to determine the impact of cash flow, sales growth, and net profit on stock prices in the Coal Mining Companies listed on Indonesia’s Stock Exchange from 2012 to 2017. The study used an analytical method, applying a descriptive analysis approach to verify the results. The population in this study were five coal mining companies listed on the Indonesian Stock Exchange from a list of those considered real coal mining companies. The data considered was for six years, ranging from 2012 to 2017. The sample used was purposive sampling, considering certain criteria required to establish an appropriate sample for the study. The authors later used the analytical method of multiple linear regression for data analysis. The results of hypothesis testing in this study indicate that: changes in cash flow have a significant positive effect on stock prices, changes in sales growth have a significant positive influence on stock prices, and changes in net income have a significant positive effect on the stock price in the coal mining companies listed on the Indonesian Stock Exchange.

Inventories – Fair Value in the Form of Materials, Goods and Finished Products

An important issue when making a management decision is how to get a real idea of the value of the company’s stock. The importance of the problem is dictated by several facts: 1. In this way, it should be assessed what money is blocked in material stocks; 2. How these assets affect the state’s trade turnover and from there the state’s economy as a whole. The influence that these assets indicate on the value of the enterprise’s capital is also significant on the credit adequacy, as well as on the cost price of the enterprise’s final products. There are different types of values for different purposes – market value, fair value for accounting purposes, fair value for tax purposes, fair value for appraisal purposes. When compiling its financial statements, the enterprise complies with the principles of “materiality – the enterprise presents separately each significant group of articles of a similar nature. Aggregation of amounts for articles of a similar nature is allowed when the amounts are immaterial or the aggregation is done for the purpose of achieving greater clarity. The amount per item is material if the omissions and incorrect presentation of the position could influence the economic decisions of users made on the basis of the financial statements, or would lead to a violation of the requirement for a true and fair presentation of the property and financial situation, financial results from activity, changes in cash flows and in equity”.

Relevance of Earnings Value, Book Value, and Operating Cash Flow in Manufacturing Companies in Indonesia

Research aims: This study examines the value relevance of accounting information consisting of earnings information, book values, and operating cash flows after Indonesia uses the full convergence of IFRS Financial Accounting Standards.Design/Methodology/Approach: The value relevance test was conducted using Ohlson's (1995) pricing model and Easton and Harris' (1991) return model. The valuation model test employed two regression equations, i.e., testing the relationship between earnings information and book value with stock prices and then testing the relationship between earnings information, book value, and cash flow with stock prices. In addition, the return model testing was performed to examine the relationship between earnings information and earnings changes with stock returns and the relationship between cash flow and cash flow changes with stock returns. The research sample was 105 manufacturing companies, with a research period from 2016 to 2019.Research findings: The test results with the pricing model approach revealed that earnings and cash flow had value relevance, while book value had no value relevance. This study’s results suggest that earnings and cash flow information are helpful for investors in making investment decisions. Moreover, the test results with the return model approach also uncovered those earnings, changes in earnings, and changes in operating cash flows had value relevance while operating cash flows, on the other hand, had no value relevance.Theoretical contribution/Originality: The utilized two models complement each other, and this study provides empirical evidence for standard setters who can renew beliefs about how much accounting information is reflected in stock prices in Indonesia, especially the manufacturing sector, after the full convergence of IFRS Financial Accounting Standards is applied.

Economic Feasibility, Benefits and Challenges of On-Farm Artisanal Cheese Making in South Africa

There is limited information regarding artisanal cheese making that can help entrepreneurs evaluate business opportunities and make realistic business decisions. The objective of this study was to assess the economic feasibility, benefits and challenges of on-farm artisanal cheese making. A model was designed to evaluate the economic feasibility of processing hard pecorino-style cheese and soft fresh ricotta on four different smallholder farms. The study assumed a small-scale family-owned business with an average herd size of 10 lactating cows, using 80 L of raw milk a day to make cheese. Projected Cash Flow Statement was used to determine the economic feasibility of cheese making. Sensitivity analysis was conducted using a factor of 10% to determine the changes in net cash flows by varying the milk volume, cheese selling price and both. The positive projected cash flow after the sensitivity analysis for the four farms ranged from $24,073.84 to $33,783.5. The breakeven quantity for the four farms ranged from 325.82 kg to 357.88 kg per year.Overall, the results show that artisanal cheese making is economically viable under the given model assumptions. However, the major challenge noted is that most farmers lack knowledge in terms of the processing techniques, market opportunities and production costs involved in cheese making. Access to this information by small-scale milk producers is vital in considering cheese making as a business.