Financial Cash Flow Research Articles

Perception of Stakeholders on Factors Responsible for Sports Facilities Defects in Selected Universities in South Western Nigeria

The study assessed the perceptions of stakeholders on factors causing sports facilities defects in selected universities established between 1957 and 1962 in South-West Nigeria by examining the strength of the identified factors responsible for sports facilities’ defects in the selected universities. Data were collected using a structured questionnaire which was administered on sports men and women and maintenance personnel. The study incorporated all the fifteen sports featured at the Nigeria University Games Association (NUGA) competitions. Three federal universities were purposively selected because these have facilities for all the fifteen sports and have hosted national and international sporting events. Data obtained were analysed using frequency distribution, percentages, mean response analysis and factor analysis. Using the mean response analysis, the result showed that the most severe factors responsible for sports facilities’ defects were design deficiencies (3.67), intensity of use (3.53), level of exposure to climatic condition (3.41), inadequate maintenance funding (3.19), vandalism (3.18), moisture (3.17) and inadequate cash flow analysis (3.16). The study recommends that users of the facilities should be carried along at the designs stage to minimize design errors and also adequate fund should be provided to maintenance unit to guarantee adequate maintenance of sports facilities for optimal performance.

PENGARUH ARUS KAS TERHADAP HARGA SAHAM PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA PERIODE 2015-2018

This study aims to analyze the effect of cash flow from operating activities, investment activities, funding activities that have an impact on stock prices and analyze the effect of cash flows from operating activities, investment activities, funding activities simultaneously affecting stock prices. Data analysis methods used are quantitative descriptive analysis and multiple regression analysis.
 Based on the results of a partial test, the effect of cash flow from operating activities on stock prices has a positive and significant effect, thus the first hypothesis is accepted. Based on the results of a partial test between investment cash flow to stock prices, it was found that cash flow from investment activities was not significant, thus the second hypothesis was rejected. Based on the results of a partial test between the cash flows of funding activities against the stock price, it was found that the funding cash flow was not significant. This can be interpreted that the funding cash flow has no effect on stock prices, thus the third hypothesis is rejected. And the results of simultaneous tests prove that there is a simultaneous influence between cash flow operating activities, investment activities and funding activities on stock prices. Thus the fourth hypothesis is accepted.

Determinantes dos fluxos de caixa de financiamento: um estudo iniciado sob a ótica da concentração acionária

Objetivo: Considerando que a literatura indica uma relação entre a captação de recursos externos com a governança corporativa e também entre a governança corporativa e a concentração acionária, este estudo teve por objetivo verificar se a concentração acionária é um determinante dos fluxos de caixa de financiamento, buscando também identificar o impacto de outras determinantes sobre estes fluxos.
 Metodologia: A amostra é composta por 284 empresas não financeiras de capital aberto ativas na BM&FBovespa no ano de 2014. Inicialmente, foi utilizada a regressão linear simples, cuja variável dependente foi o fluxo de caixa de financiamento e a variável independente o controle acionário. Para identificar o impacto de outras variáveis determinantes do fluxo de caixa de financiamento, utilizou-se a regressão múltipla, na qual a variável dependente manteve-se a mesma e as variáveis independentes foram: controle acionário, tamanho da empresa, oportunidade de investimento, fluxo de caixa e despesa de capital.
 Resultados: Verificou-se que a concentração acionária não é um determinante do fluxo de caixa de financiamento, mas que as demais variáveis testadas impactam o referido fluxo com os sinais esperados, com exceção da oportunidade de investimento, para a qual era esperado um efeito negativo, porém verificou-se um efeito positivo. O resultado referente à concentração acionária contraria esperado, pois, com base na literatura, entende-se haver uma relação entre concentração acionária e o nível de governança corporativa, e que quanto maior o nível de governança, maior a facilidade de captar recursos de terceiros.
 Contribuições do Estudo: O trabalho agrega aos demais estudos relativos aos determinantes do saldo de caixa e dos fluxos de caixa realizados no Brasil, visto não ter sido encontrado, na literatura nacional, trabalho com enfoque nos determinantes dos fluxos caixa de financiamento. Além disso, investigou uma variável que não havia ainda sido indicada como uma possível determinante dos fluxos de financiamento.

Análise de sustentabilidade financeira no segmento imobiliário na região nordeste de Belo Horizonte

Este artigo tem como objetivo identificar quais as variáveis que influenciam na sustentabilidade dos negócios empresariais na percepção dos gestores. A sustentabilidade hoje nas empresas é uma ferramenta importante para seu crescimento e sobrevivência no longo prazo. Este estudo analisou como os gestores das imobiliárias trabalham com a sustentabilidade financeira e quais os seus resultados. Utilizou-se, primeiramente, a pesquisa bibliográfica, seguida por uma pesquisa quantitativa onde foi aplicado um questionário as imobiliárias dos bairros Dona Clara e Liberdade na cidade Belo Horizonte/MG. Esta pesquisa mostrou a importância das variáveis de sustentabilidade financeira com: planejamento financeiro, capital de giro e fluxo de caixa e como os gestores utilizam essas variáveis para que seu negócio seja sustentável financeiramente. O resultado desta pesquisa identificou que os gestores têm conhecimento sobre as variáveis que influenciam a sustentabilidade, mas mostrou também paradoxos na utilização destas variáveis.

How Useful Is It for Banks to Analyze Financial Statements

Within the last decades, under the continuous advancement of human commercial civilization, the tide of economic globalization has swept through every corner of the world. Accounting, as a precise “business language”, is in the context of cultural, linguistic and social systems. The disclosure and communication of business information plays a crucial role and is increasingly valued by people from all walks of life. The financial statements, as a major carrier to reflect the financial position, business activities and cash flow of the enterprise, are also affecting the interests of all parties and bearing the extraordinary significance (Berger et al., 2015: p. 2286). Because of this, how to analyze and interpret financial statements has become a topic that needs to be continuously researched and explored in the new century. According to Shopify (2019), financial statements are defined as the accounting form of reflecting on an overall picture of the health of a business, including cash flow statement, the income statement and the balance sheet of the business. It can provide financial position performance and changes for a corporation. Investors or financial workers can uncover financial risk factors from qualitative textual risk disclosures reported in financial statements, especially bank risks.

СОЗДАНИЕ И ТЕСТИРОВАНИЕ ЭФФЕКТИВНОЙ МОДЕЛИ КОРПОРАТИВНОГО КАЗНАЧЕЙСТВА ПАО «ГМК НОРНИКЕЛЬ»

In a constantly changing market economy, the emergence of new competitive areas, organizations often have to deal with a situation when it is necessary to think over an activity strategy for stable functioning. The adopted strategy for the development of the organization and the management decisions associated with it directly affect the competitiveness of the organization, the size of its market share and the quality of its financial results and cash flows. Given the current difficult economic environment caused by the outbreak of the COVID-19 virus, the global economy is in recession due to the restriction or even shutdown of many large and medium-sized companies. In times of crisis, companies are trying to optimize their costs by reducing them and more careful control. In addition to controlling the company's income and expenses, there is an acute problem of controlling cash flows, which are the basis for the normal functioning of any company. Funds fully cover the work of any enterprise at all stages of its life cycle. This is a rather complex category that occupies an important (if not key) place in the activities of any enterprise. Therefore, cash management requires increased attention. Cash in itself is a non-profit asset, therefore the main goal of its management policy is to maintain it at the minimum necessary level, sufficient for the implementation of effective financial and economic activities of the organization. In this regard, one of the most important tasks of the company's financial management is the operational planning of cash management. One of the key tools for such planning is the company's cash flow forecasting model, which reflects the expected cash receipts and payments of the company for the reporting period. The relevance of this study is due to the fact that in a rapidly changing internal and external environment, the key to the success of any enterprise is the constant availability of a clear, detailed management plan for every detail that affects its activities; one of the key details is money. The purpose of this work is to build a dynamic model for forecasting the company's cash flows, which shows the expected cash receipts and payments of the company for the reporting period.

Remuneração de executivos e ciclos de vida organizacional: um enfoque em empresas brasileiras

This study aimed to analyze the remuneration of executives in each phase of the business life cycle. A descriptive, documentary, survey-type study was performed with a predominantly quantitative approach, using a sample of 560 observations across 112 companies. For the definition of the current life cycle phase of each company analyzed, Dickinson’s (2011) methodology was chosen, which classifies the life cycle into the five phases of start-up, growth, maturity, turbulence, and decline, based simultaneously on the signs of the operating, investment, and financing cash flows. The construction of the econometric model was based on Madhani (2012), Ventura (2013), and Koh et al. (2015). The results suggest that the highest level of executive compensation was in the turbulence phase, followed by the growth, decline, and start-up phases, with the lowest level observed in the maturity phase. It was concluded that the level of remuneration paid to the executives of the companies studied herein is related to the organizational life cycle, which corroborates the contingency and agency theories.

The effect of earning information, cash flow components, and financing decision on stock returns: empirical evidence on Indonesia stock exchange

Trading, Service, and Investment sectors show an essential role in the national economy, and they have grown significantly during the past years. They have created many job opportunities in both the formal sector and the non-formal sector. This study aims to analyze the effect of net profit, operating cash flow, financing cash flow and investing cash flow and, financing decisions on stock’s return of service industry listed at Indonesia Stock Exchange (IDX). The analysis was done using the data panel regression. It shows that earning information, operating cash flow, financing cash flow positively affect stock returns. However, investing cash flow and financing decisions (proxy leverage) show a negative effect on the stock's return significantly. Simultaneously, the variables above affect stock return significantly. The implication is that management should pay more attention to financial factors, especially net profit, cash flow, and leverage to increase stock return and the company’s value.

The Triple Helix Frame Contributes to Strategic Innovation in Nearshore Wind Park Ecosystems

This research shows how port authorities in a triple helix context can contribute to strategic innovation with reduction of Levelized Cost of Energy in nearshore wind park ecosystems. The empirical qualitative case study was conducted from September 2017 to June 2018 with a port and a nearshore wind park owner and a logistic business actor operating on land and one operating at sea. Individual interviews and three joint network meetings provided data for the research. The findings reveal that port authorities in triple helix contexts can contribute to strategic innovation through use of the cross-disciplinary trinity of ‘organization’, ‘business model innovation’ and ‘financial cash flow’ to address value creation on project ecosystem level. The findings are summarized in a model for overview on the shift in interest and the basic understanding of flow. It is shown that the triple helix discussions provide a meaningful frame to achieve strategic innovation for competitive advantage of renewable wind energy ecosystem.Keywordsstrategic innovation – ecosystems – renewable energy – offshore wind parks

Effect of Net Cash Flows on Investors' Decisions on Companies Listed in Amman Stock Exchange during the Period of 2001–2017: A Case Study on Industry and Service Sectors

This study aims to estimate the impact of net cash flows on investors' decisions on industrial and service companies listed in the Amman Stock Exchange during the period of 2001–2017. The study is based on data from the accumulated annual reports of the previously mentioned industrial and service companies. The study tests autocorrelation by using the Breusch–Godfrey serial correlation Lagrange multiplier test, and the analysis shows no autocorrelation between the variables of the study. Moreover, the study tests the stability of the variance by using the autoregressive conditional heteroskedasticity test, and the results show the absence of a variation problem among the study variables and models. Thus, they do not suffer from measurement problems. Hypotheses testing through the measurement analysis of the industrial sector show a negative impact of net investment cash flow on investors' decisions. However, net financing cash flow has a positive effect on investors' decisions, while net operation cash flow has no statistically significant effect on investors' decisions. The analysis of the service sector reveals a statistically significant negative effect of net operation cash flow on investors' decisions, whereas net financing cash flow has no effect on investors' decisions. The study concludes with a set of recommendations, the most important of which is the need for companies to pay attention to net investment cash flows to buy companies with fixed assets and to use traditional financing alternatives such as murabaha, musharaka, and Islamic sukuk hedging instruments.

Pengujian Kandungan Informasi Arus Kas Dan Laba Akuntansi Terhadap Return Saham: Studi Pada Perusahaan LQ45

This study aimed to analyze the effect of changes in cash flow from operating activities, cash flows from investing avtivities, cash flow from financing activities and accounting earnings on stock returns in the Indonesian capital market. Research conducted on 15 companies listed in the LQ45 index in the Indonesia Stock Exchange (BEI). Observations were made for 4 years from 2011 to 2014. Data were analyzed using data panel analysis. The results show that operating cash flow and financing cash flow significantly influence stock returns. This means any increase in operating cash flow and in expenditures for financing activities followed by an increase in stock returns. Accounting earnings and cash flows have no significant effect on stock returns, since the accounting information and investment cash flows of the sample companies do not contain relevant information and market anomalies occur due to investor failure to understand accrual information, cash flow, market risk and conservatism.

PENGARUH FINANCIAL DISTRESS, AKTIVITAS OPERASIONAL DAN PROFITABILITAS TERHADAP RETURN SAHAM PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2011-2018

ABSTRACTOne of the mainstay sectors in the Indonesian capital market is the mining sector. Mining companies require large capital to carry out their operations, so many mining companies enter the capital market to obtain investment and strengthen their financial position. The objectives to be achieved from the formulation of the problems that have been described are to determine the partial and simultaneous influence of Financial Distress, Operational Activities and Profitability on Stock Returns on mining companies listed on the Indonesia Stock Exchange in 2011-2018. The population is 41 companies. Samples obtained by purpose sample technique were 4 companies. The independent variables used are Altman Z Score, Operating Cash Flow, Investment Cash Flow, Funding Cash Flow, Net Profit Margin, Return On Equity and Return On Asset, while the dependent variable used is stock returns. In this study, the analytical method used is multiple linear regression analysis method, with the classic assumption test including normality test, multicollinearity test, heteroscedasticity test and autocorrelation test. Hypothesis testing uses the t statistical test and the f statistical test, and the coefficient of determination test. The results of this study indicate that Financial Distress as measured by altman z- score, Operational Activities as measured by AKO, AKI and AKP, Profitability as measured by NPM, ROE and ROA partially or simultaneously does not significantly influence stock returns. The coefficient of determination produces a value of 19.6% which means that stock returns are influenced by Financial Distress, Operational Activities and Profitability by 19.6% while the remaining 80.4% is influenced by other factors not included in the study. Keywords: Financial Distress, Operational Activities, Profitability, Stock Return

Analisis Faktor Determinan Kinerja Keuangan pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

This research is aimed to investigate determinant factors of firm performance especially listed companies at Indonesia Stock Exchange, using Return on Assets (ROA), Return on Equity (ROE), and Market-to-Book Value Ratio (MBR) as dependent variables. Determinants tested are current assets, leverage, cash flow, sales growth, investment in fixed assets, company characteristics, and income tax expense, with liquidity as control.
 Panel data regression is applied using secondary data in this study, with sample of companies with complete and audited annual financial statements for 2012-2017 period which are listed at Indonesia Stock Exchange.
 The results revealed current assets have significant negative effect on firm performance, while cash flow from operating activities, sales growth, and income tax expense significantly influence firm performance in positive. However leverage, investing and financing cash flow insignificantly influence firm performance. Firm characteristic overall has insignificant effect towards ROA and MBR but significantly determine ROE.

Mutual Fund Returns and Their Characteristics: A Novel Approach to Picking Better Performing Actively Managed Funds

Using a survivorship bias-free dataset set of over 4,300 U.S. equity and international equity funds for the period 2000-2018, we examine whether funds chosen based on various fund characteristics in a given year can yield superior performance the following year. We find that a portfolio of funds chosen based on the combination of characteristics of lowest expense ratio, and lowest turnover and highest Sharpe ratio, generates considerably better future performance than the average actively managed fund and the difference in returns is statistically significant. Interestingly, we are unable to confirm the conventional wisdom that the size of a fund or past recent fund cashflows are important drags on portfolio performance.

Liquidity profitability trade-off: Evidence from medium enterprises

Research Question: This paper examines the impact of liquidity on the profitability of the Serbian polluting medium sized enterprises. Motivation: We study the impact of traditional liquidity indicators and indicators based on cash flow on the profitability. In domestic literature, a contribution in the field of financial stability analysis based on cash-flow is rare, consequently we use cash flow indicators as a liquidity measure. Focus of this paper is on the medium sized enterprises in Serbia being the major sources of environmental pollution. Medium-sized enterprises are the main drivers of economic growth. For improving environmental performance and applying technologies and processes that meet environmental requirements, it is necessary the liquidity and profitability improvement. The progress in the area of environmental protection is the relevant part of the accession process of Serbia to the EU. Idea: The idea of this paper was to empirically examine the liquidity profitability trade-off of selected enterprises. The research was conducted using return on assets as the dependent variable, and three liquidity ratios and three cash flow based indicators as independent variables. Data: The financial analysis is based on the sample of 48 polluting medium-sized enterprises for the period 2010-2015. The official financial statements were taken from the Serbian Business Registers Agency. The data are used on an annual basis. Tools: We tested the panel regression model of profitability with the total number of observations being 288. We estimated the unbalanced panel because our dataset had missing values. It is used the standard pooled OLS estimator. Before estimated panel regression model, we did stationarity and cointegration analysis of sample data. Findings: The results of our study show a significant impact of quick liquidity ratio, cash flow operating margin and cash flow investing margin on profitability measured by return on assets. However, there are no significant effects of current liquidity ratio, operating cash flow liquidity ratio and cash flow financing margin on profitability. The conclusions of our paper refer to the selected enterprises in the observed periods. Contribution: This paper contributes both to the literature concerning liquidity and profitability analysis, since we use cash flow indicators as a liquidity measure.

HUBUNGAN INFORMASI SILPA APBD DAN ARUS KAS DENGAN PENGANGGARAN BELANJA MODAL PADA PEMERINTAH DAERAH

This study aims to test and analyze the influence of the SiLPA APBD, Operating Cash Flow, Investment Cash Flow, funding cash flows on capital expenditure budgeting.
 The source of this research data is the district and city financial statements that exist in the NTT provincial government within a period of 5 years, from 2012-2016. This study uses 2 variables, namely independent and bound variables. The independent variable consists of SiLPA APBD information, Operating Cash Flow (CFO), Investment Cash Flow (CFI) and Funding Cash Flow (CFF), while the dependent variable consists of capital expenditure.
 The results of this study are that simultaneously the four independent variables have a significant effect on capital expenditure budgeting, partially the four independent variables also have a significant effect on capital expenditure budgeting and the most dominant is the CFI (X3) or Investment Cash Flow variable.

Cash Flow Statement Analysis between Commercial Banks (With Reference to Himalayan Bank Ltd. and Global IME Bank Ltd.)

Banks are general means of institutions that deal with money. They provide financial resources for the development of the nation. They collect deposits from the people and lend these resources to people who demand investment. This study aims to evaluate and compare cash flows of selected two commercial banks. It helps to find out sources and uses of cash to analyze cash flow performance of Himalayan Bank and Global IME Bank limited. Cash flow statement is a statement which states the cash inflows and outflows of cash. A statement of cash flow reports cash receipts and payments classified according to the major activities: operating, investing and financing during the period. In this paper, a comparative study has been undertaken between two banks Global IME Bank limited and Himalayan Bank Limited. This study has been carried out with analytical research design to analyze the cash flow of two banks. Secondary data were used in this study. The cash flow from operating, investing and financing activities is fluctuating trend. It is also found that operating cash flow is positive and financing cash flow is negative in most of the years. In comparison, the cash flow of HBL has more consistency than GIBL. Both banks have positive Net cash flow except few years. Because of the conflict and political instability, the banking sector has also been affected. In banking industry, it seems that operating expenses are increasing year by year. Therefore, commercial banks should pay good attention to the minimization of operating expenses as possible.

Subjects and effectiveness of tax control

The article deals with the composition of the participants in the monitoring of tax flows and the effectiveness of tax control (control work) in the part of the tax payments. The purpose of the work is to study the effectiveness of tax administration, fees, payments, monitoring of tax and non-tax (financial) flows in the regions of Ukraine by the results of tax control (control and verification measures). The expediency of using the concepts of «tax and non-tax flows» for deepening and possible in the further studies of mathematical description of the trends of changes in the corresponding budget revenues is substantiated. The interaction of control bodies (tax authorities) and taxpayers as subjects of the tax process is generalized. The functions of the controlling bodies (State Fiscal and Customs Service of Ukraine) to ensure the filling of the revenue part of the state and local budgets are considered. The components of monitoring the administration of taxes, fees, payments are investigated. The analysis of tax and non-tax receipts of income (payments) to ensure the formation of state and local budgets is conducted. The data of the main indicators of control work in the oblasts of the western region of Ukraine for 2014-2018 are presented. Important are additional payments to the Consolidated Budget of Ukraine, which are the result of elimination of violations of the tax legislation of Ukraine (underpayment of taxes and other payments, penalties). The study shows the uneven income of this financial (cash) flow. The share of cash accruals in tax revenues of the Consolidated Budget of Ukraine also shows some fluctuations of the tax flows. The article proves that in the Western regions of Ukraine, the number of documentary checks in 2018 decreased by almost 50% compared to 2014, and the amount of additional accrued monetary liabilities in 2018 increased by one third (33.8%). A similar situation is peculiar to Ukrainian economy. This can be seen as an indication of the improvement in the quality of tax activity in these regions.

Development of Financial Supply Chain Management and Supply Chain Finance Model

Expansive economic, production and commercial development today has made businesses and enterprises to have active presence and contribution in network-based and chain economy. Although focusing on this approach has brought some privileges and productivities for the firms which are members of networks and supply chains, it has been accompanied by various problems and complexities for financial crisis management, cash flow and flow capital amount of the foundations and their commercial partners. To overcome such problem, besides developing the concepts of supply chain management and logistics, Financial Supply Chain Management (FSCM) was also promoted to minimize inefficiencies of financial flow in supply chain using financial, engineering and management approaches, and to provide an effective management ground for cash inventory and flow capital all throughout the supply chain by making use of various tools and techniques of supply chain finance and/or SCF. Hence, by changing approach and role of financial services provider from just supplier of financial resources as the commercial partners of economic and commercial firms, it caused that a major part of managerial duties of financial flow of chain enterprises could be defined in collaboration with financial services provider, and they may be executed in a more desirable manner considering the capacities and capabilities of banks and financial institutes. Thus, regarding the significance of financial flow management in the chain and benefitting the principles and fundamentals of research by fact finding and case study, it was tried to present a framework to make use of financial flow management and its principles and fundamentals effectively by reviewing evidences as well as applicable experiences in this area. The present paper emphasized that as logistic services providers are responsible in supply chains to improve inventory level; financial services providers also have the same role concerning liquidity level in the chains. Therefore, by making coordination and integrity in the inventory flows, information and financial flows through supply chain, we can handle financial risks and provide more stable value flow in supply chain till distribution, and create a ground better for materializing objectives of the firms which are members of supply chain. Keywords: Financial Supply Chain Management, Supply Chain Finance, Supply Chain Management, Financial Services Providers. DOI : 10.7176/RJFA/10-1-03

Informative Content of Cash Flows in the Analysis of Risk

The proposed of this paper is to determine the informative content of the cash flows related to the earnings of the process of explaining the firm's risk. The risk proxies used are Mark-to-Book, Market Beta, financial leverage and insolvency risk. The models are solved by the ordinary least square (OLS) using the panel data technique. The population of this study involves companies listed on the Buenos Aires Stock Exchange in the period from 2004 to 2012. The evidence for firms listed in the Buenos Aires Stock Exchange indicates that the Cash Flow Statement shows an additional informative content to the earnings. The operating, investing, and financing cash flows exhibit a differential effect for the different risk proxy; however, the investment cash flows predominate in the risk market.