Investment-cash Flow Research Articles

Do Political connections influence investment decisions? Evidence from India

The study examines the associations between political connections, cash flows, and firm investments of Indian firms. Using a sample of 1,953 listed firms on the National Stock Exchange from 2009 to 2021, we investigate how political connections benefit financially constrained firms. We use both donation and promoter channels of political connections as a proxy for political connection. Our analysis shows that politically connected firms' investment cash flow sensitivities are lower than that of politically non-connected firms. Subsequently, we observe that politically connected, financially constrained firms do not rely heavily on internal cash for investments.

Investment–cash flow sensitivity and investor protection

AbstractWe examine the role of country‐level legal investor protection (i.e., shareholder and creditor protection) on firm investment–cash flow sensitivity (ICFS). Using underexplored research data on investor protection across 21 countries and working with a conservative empirical design, we extend prior literature on the relation between investor protection and ICFS and provide new evidence on how these country‐level attributes interact to explain a firm's ICFS. We find that either the strong legal protection of minority shareholders or the strong legal protection of creditors reduces the sensitivity of investment to internal cash flow. However, in countries with strong levels of both minority shareholder and creditor protection, ICFS increases. Our results remain robust after controlling for several alternative explanations. The results support the argument that overregulation arises when policymakers increase investor protection at levels that lead firms to avoid external sources of finance, hampering firm investment. Our findings suggest that countries face a regulatory trade‐off such that increasing investor protection (either shareholder or creditors protection) enhances financial markets efficiency, but excessive regulation can indeed lead to financial markets inefficiencies.

ANALISIS PENGARUH ARUS KAS OPERASI, ARUS KAS INVESTASI & LABA AKUNTANSI TERHADAP RETURN SAHAM PADA PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA


 
 
 
 
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 This study aims to determine the effect of operating cash flow, investment cash flow and accounting profit on stock returns in banks listed on the Indonesia Stock Exchange.
 This research is an associative type with the research instrument in the form of a list of tables consisting of operating cash flow, investment cash flow, net income and share price of PT. Bank Rakyat Indonesia, Tbk, PT. Bank Negara Indonesia, Tbk , PT, State Savings Bank, Tbk and PT. Bank Mandiri, Tbk. The population in this study were all banks listed on the Indonesia Stock Exchange from 2014-2020 as many as 43 companies. The sample used is 4 state-owned banks listed on the IDX in 2014-2020. The sampling technique used is purposive sampling. Data collection techniques in the form of documentation and literature study. The data analysis technique used classical assumption test, multiple linear regression analysis, multiple correlation coefficient, determination test, t test and f test.
 Simultaneously operating cash flow, investment cash flow and accounting profit together have a significant effect on stock returns in banks listed on the Indonesia Stock Exchange.
 
 
 
 
 Kata Kunci: Operating Cash Flow, Investment Cash Flow, Accounting Profit, Stock Return
 
 
 
 

Pengaruh Return Saham Terhadap Kepemilikan Institusional Sebagai Variabel Moderating Pada Perusahaan Manufaktur Terdaftar Di BEI

The study aims to examine the influence of return on assets, operating cash flow, financing cash flow, investment cash flow, economic value added, residual income, market value added, debt to equity ratio, to return stock with institusional ownership as a moderating variable. The population in this study is a manufacturing company in Indonesia Stock Exchange period of 2015 – 2019. By using purposive sampling method, the sample number 52 manufacturing company with 208 observations. By using multiple regression analysis, the results showed simultaneously or synchronously (test F) return on assets, operating cash flow, financing cash flow, investment cash flow, eonomic value added, residual income, market value added, debt to equity ratio positive and significant effect on return stock. Partially return on assets and cash flow funding positive and significant impact on the return of shares, while operating cash flow, investment cash flow, economic value added, residual income, market value added, and debt to equity ratio has no significant effect on return stock. Test results residual indicate that institusional ownership is not able to moderate the influence of return on assets, operating cash flow, financing cash flow, investment cash flow, economic value added, residual income, market value added, and debt to equity ratio on return stock to manufacturing company in Indonesia Stock Excahnge 2015 – 2019.

Pengaruh Perubahan Arus Kas dan Profitabilitas Terhadap Return Saham Sebelum dan Selama Pandemi Covid-19 (Studi Pada Sektor Transportasi dan Logistik Yang Terdaftar Di Bei Periode 2017-2020)

This study intend to determine the effect of changes in cash flow and profitability on stock returns in transportation and logistics sector companies listed on the Indonesia Stock Exchange for the 2017-2020 period. This research method is a quantitative method with the data source used is a documentary in the form of the company's financial statements. The data analysis method used descriptive statistical analysis, classical assumption test, multiple regression analysis, and hypothesis testing. Based on the test results, operating cash flow, investment cash flow, funding cash flow, return on assets, return on equity, and earnings per share simultaneously have an effect on stock returns. Investment cash flow partially has a negative and significant effect on stock returns. Return on equity has a positive and significant effect on stock returns, while operating cash flow, funding cash flow, return on assets, and earnings per share have no partial effect on stock returns.

PENGARUH LAPORAN ARUS KAS OPERASI, INVESTASI, PENDANAAN DAN LABA AKUNTANSI TERHADAP TINGKAT LIKUIDITAS PADA PT. SEMEN INDONESIA Tbk. TERDAPAT DI BURSA EFEK INDONESIA TAHUN (2013-2020)

Abstract This research uses PT. Semen Indonesia Tbk. Which is listed on the Indonesia Stock Exchange (BEI) in the period 2013-2020. The data used is quantitative data obtained from the Indonesia Stock Exchange website www.idx.co.id. The population in this study amounted to 32 and sampling technique is time series. The purpose of this research is to prove empirically the influence of operating cash flow statements, investments, funding and accounting profit on liquidity level. From the analysis results show that based on testing simultaneously by using the test F all variables research operating cash flows, investment cash flows, cash flow financing, and accounting profit. By looking at the value of the influence of Fcount 6.536 and Ftabel 2.95 where Fcount is greater than Ftable 6.536 2.95 and its influence level with Sig value 0.001 means less than 0.05. Based on partial test of t-test only operating cash flow which has no effect to see the value of influence where the value Tcount = 0.726 and Ttable = 1.699 which means Tcount is smaller than Ttable 0.726 1.699 and the level of influence with significance value 0.474 which means greater than Level of significance of 0.05.

Return Saham: Suatu Tinjauan dengan Arus Kas

Investors do their investment in a company to get a chance for optimum stock return. Therefore investors need to determine a company that has good value using the cash flow information. The stock return obtains the payment received for its ownership and changes in the market price divided by the initial market price. Investors are giving more attentionto the company that have the cash flows’ stability and the optimum return of their invesment. This stock return allows investors to compare the expected returns provided by various investments at the various rate of return. This study aims to examine the effect of cash flow on stock returns. The population of this study is property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2020. The sample is obtained by the purposive sampling method with 109 companies that match with the criteria. The results show that operating cash flow affects stock returns, meanwhile investment cash flow and funding cash flow do not affect stock returns.

Leverage and Investment Cash Flow Sensitivity: Evidence from Muscat Securities Market in Oman

This article investigates the investment cash flow sensitivity (ICFS) and the effect of leverage on the firms’ ICFS by using data from 66 non-financial companies from Muscat Securities Market, Oman for a 7-year period from 2013 to 2019. We used a dynamic panel investment model based on the Euler equation approach and ran dynamic panel regressions using the dynamic panel system generalized method of moments (GMM). We run two regressions: first, testing the sensitivity of investment to the availability of the internal funds; second, testing the effect of firms’ leverage levels on the sensitivity of investment to cash flows. The results showed a significant sensitivity of investment to cash flows for the sample companies. The positive coefficient for the cash flow variable indicates the presence of financing constraints. The results showed that leverage has a significant effect on the ICFS of the companies, indicating that the companies with higher leverage have ICFS.

Comparative analysis of portfolio investment: world and domestic practice

Object: To assess and analyze portfolio investment cash flows in various countries of the world.Methods: Generalization, comparative analysis, dynamics of cash flow indicators.Results: In recent years, there has been a sharp increase in sustainability-related activity in global equity markets. In a number of countries, measures were taken to strengthen public policies aimed at promoting sustainable development, which led to an outflow of portfolio investments in 2018. However, the pandemic has made significant adjustments to the cash flows of portfolio investments in the countries of the world, primarily in developed countries. As a result of the analysis, it was found that 2020 began to be characterized by negative indicators of the volume of portfolio investments.Conclusions: Capital markets play an important role in the global investment chain. Portfolio investment is the third largest source of external finance for developing countries, and established capital markets practices can guide the sustainable development approach of investing countries around the world.

Pengaruh Arus Kas Investasi, Arus Kas Pendanaan, Arus Kas Operasi dan Laba Bersih terhadap Dividen Kas pada Perusahaan Properti

This study aims to determine the effect of investment cash flow, funding cash flow, operating cash flow, and net income on cash dividends in property companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period. This research method is descriptive quantitative. The total population is 60 companies and by using purposive sampling technique, there are 12 companies, and the year of research observation (5) is five years and is obtained from the IDX. Data analysis in the form of multiple linear regression. The results showed that the results of the T test, namely, a) the investment cash flow variable to cash dividends had a t value, namely t-count < t-table, namely -2.659 <1.684 and a significant value of 0.012 <0.05; b) the variable of funding cash flows to cash dividends has a t value of t-count < t-table which is 1.459 <1.684 and a significant value of 1.154 > 0.05; c) operating cash flow variable to cash dividend has a value of t, namely t-count < t-table, namely 0.691 < 1.684 and the significant value is 0.494 > 0.05; d) the variable net income to cash dividends has a value of t, namely t-count < t-table, namely -4.250 <1.684 and the significant value is 0.000 <0.05. The results of the F test showed that the f-count value >f-table was 7.148>2.449 and the significant value was 0.00<0.05. In conclusion, the variables of investment cash flow and net income have a partial and significant effect on cash dividends. Meanwhile, funding cash flow and operating cash flow have no partial and significant effect on cash dividends. Simultaneously, investment cash flow, funding cash flow, operating cash flow, net income have a significant effect on cash dividends.
 Keywords: Investment Cash Flow, Operating Cash Flow, Funding Cash Flow, Cash Dividend, Profit and Loss

REPORT ANALYSIS OF CASH FLOWS IN THE REGIONAL GOVERNMENT OF BOALEMO DISTRICT

The aim to be achieved in this research is to know in-depth about the results of the analysis of cash flow reports in the local government of Boalemo Regency.
 In this study, researchers used quantitative research types. From the research population above, samples were taken from the 2017-2018 cash flow statement in the Regional Government of Boalemo Regency. The method used in this paper is descriptive quantitative using cash flow ratios.
 The results showed that the analysis of aruskas reports in the local government of Boalemo district was seen from: 1) from the results of the analysis of the Operational Cash Flow Ratio data after the analysis there was an increase of 5.5%, this explains that the Regional Government of Boalemo Regency has a good financial performance with an increase in the average increase; 2) from the results of the data analysis of the investment cash flow ratio, after the analysis was carried out there was an increase of 4.9%. Looking at the data shows that the average increase is good from 2017 to 2018. So that the Regional Government of Boalemo Regency is able to manage related cash management aimed at acquiring and disposing of fixed assets and other investments in cash; 3) from the data analysis, the Funding Cash Flow Ratio after the analysis is down to 4.6%. In financing cash flow reflects the demand and cash disbursements related to long-term loans; 4) from the results of the analysis of the Transitoris Cash Flow Ratio data, after the analysis, the value is still fixed or balanced by 2.6%. From these results it can be explained that cash flow from transitor activities reflects cash receipts and disbursements to the Regional Government of Boalemo Regency in government funding.

Transparency of agriculture companies: rationale of responsible investment for better decision making under sustainability

Purpose. The purpose of the article – to explore transparency under sustainability among agricultural companies in Ukraine (company “Kernel”) and the Czech Republic (company “Agrofert”) with further recommendations and implications related to reporting.
 Methodology / approach. Qualitative estimations of sustainability transparency are based on Sustainability Transparency Index (STI) calculations. Methodology of this index is based on binary estimations of a number of transparency criterions including links to sustainability information; existence of sustainable development policy; availability of sustainability and SDG reports; disclosure according to ESG criteria and specifics SDGs as well as other relevant goals related to SDG and sustainable development.
 Results. Sustainability transparency from 2016 till 2019 in Agrofert and Kernel was almost the same. But since 2019 after Kernel introduced a number of steps to increase its transparency the situation has changed dramatically. STI index has increased from 32 in 2019 to 80 in 2021. STI values for Agrofert were unchanged in 2020 (the latest available period of analysis). As a result, Kernel’s financial results and indicators have demonstrated significant improvement both absolute and relative. For example, net profit increased by more than 1000 %, investment cash-flow by 100 %, ROE – by 500 % and ROIC by 140 %.
 Originality / scientific novelty. New empirical results based on qualitative estimations of sustainability transparency for the agriculture companies from different countries are provided. Current study covers the existing research gap, proved by bibliometric analysis tool, for instance in pure academic discussion in measurement, comparison and benchmarking of agricultural companies’ transparency for the responsible investment purpose. Recommendations for sustainability transparency improvement are proposed. They are intended on better perception of sustainability ideology and incorporation of ESG/SDG criterion by agriculture companies in Ukraine and especially Czech Republic, levelling the informational asymmetry and moral risks for their investors and create better investment rationale for decision making under sustainability. 
 Practical value / implications. The most efficient steps include the following ones: development and implementation of sustainability policy; emergence of specific reports based on ESG criteria; implementation of SDGs in activity of the company with further prioritization of these criteria within two groups. Further study in this field might be devoted to sustainability transparency comparison for agriculture companies in different branch in Ukraine and Czech Republic. Spreading the scope and sample of research allows making cross-industries STI benchmarking analysis.

Transparency of agriculture companies: rationale of responsible investment for better decision making under sustainability

Purpose. The purpose of the article – to explore transparency under sustainability among agricultural companies in Ukraine (company “Kernel”) and the Czech Republic (company “Agrofert”) with further recommendations and implications related to reporting.
 Methodology / approach. Qualitative estimations of sustainability transparency are based on Sustainability Transparency Index (STI) calculations. Methodology of this index is based on binary estimations of a number of transparency criterions including links to sustainability information; existence of sustainable development policy; availability of sustainability and SDG reports; disclosure according to ESG criteria and specifics SDGs as well as other relevant goals related to SDG and sustainable development.
 Results. Sustainability transparency from 2016 till 2019 in Agrofert and Kernel was almost the same. But since 2019 after Kernel introduced a number of steps to increase its transparency the situation has changed dramatically. STI index has increased from 32 in 2019 to 80 in 2021. STI values for Agrofert were unchanged in 2020 (the latest available period of analysis). As a result, Kernel’s financial results and indicators have demonstrated significant improvement both absolute and relative. For example, net profit increased by more than 1000 %, investment cash-flow by 100 %, ROE – by 500 % and ROIC by 140 %.
 Originality / scientific novelty. New empirical results based on qualitative estimations of sustainability transparency for the agriculture companies from different countries are provided. Current study covers the existing research gap, proved by bibliometric analysis tool, for instance in pure academic discussion in measurement, comparison and benchmarking of agricultural companies’ transparency for the responsible investment purpose. Recommendations for sustainability transparency improvement are proposed. They are intended on better perception of sustainability ideology and incorporation of ESG/SDG criterion by agriculture companies in Ukraine and especially Czech Republic, levelling the informational asymmetry and moral risks for their investors and create better investment rationale for decision making under sustainability. 
 Practical value / implications. The most efficient steps include the following ones: development and implementation of sustainability policy; emergence of specific reports based on ESG criteria; implementation of SDGs in activity of the company with further prioritization of these criteria within two groups. Further study in this field might be devoted to sustainability transparency comparison for agriculture companies in different branch in Ukraine and Czech Republic. Spreading the scope and sample of research allows making cross-industries STI benchmarking analysis.

Financial Constraints and Investment Financing Decisions among Indian Firms in Post Sub Prime Crisis Era

The study investigated the sources of investment financing by Indian non-financial companies and the extent of dependency on internal funds to finance their investment projects since the U.S. Sub-prime mortgage crisis. A balanced panel of 359 firms for the period of 2006-2020 was estimated by GMM, Fixed Effect, Random Effect and OLS Pooled technique for three groups of firms. The result indicated that internal funds were highly important for all categories of firms. Further, higher investment cash flow sensitivity for the smaller firms demonstrated that these firms did not have easy access to capital markets compared to larger firms despite significant reform measures in the Indian financial market since 1991.

Pengaruh Earning Per Share, Investing Cash Flow dan Economic Value Added terhadap Harga Saham pada Sub Sektor Otomotif dan Komponen yang Terdaftar di Bursa Efek Indonesia Periode 2015-2020

The stock price is a form of public trust in the company's performance. Stock prices are influenced by two factors, namely fundamental factors or factors related to the performance of a company and market factors (trust of investors and potential investors), factors that are determined from external to the company. The purpose of this study is to determine the effect of Earning Per Share (EPS), Investing Cash Flow (ICF), and Economic Value Added (EVA), on Stock Prices in Automotive and Component Sub-Sector Companies Listed on the Indonesia Stock Exchange for the 2015-2020 period. The population used in this study were 13 companies, and the sample was 5 companies using purposive sampling technique with the criteria set by the author. The analysis used is multiple linear regression analysis method. Based on the results of simultaneous testing, it is obtained that the variables Earning Per Share, Investing Cash Flow and Economic Value Added simultaneously have a very strong influence on the Stock Prices of Automotive and Component Sub-Sector Companies listed on the Indonesia Stock Exchange, so that the first hypothesis is proven and accepted. While the partial test results Earning Per Share has a positive and significant effect on stock prices, Based on the result of the study assisted SPSS software, the regression equation Z Score Y = 8,003E-18 + 0,838X1 – 0,131X2 – 0,057X3 + e Simulations the independent variables have a significant effect on the dependent variable which is indicated by fcount > ftabel and patially has a positive effect. R square 92,6% and rest 7,4% explain other variable outside research model

PENGARUH ARUS KAS TERHADAP LIKUIDITAS PERUSAHAAN PADA PERUSAHAAN YANG TERDAFTAR DI BEI

This research was conducted with the aim of empirically testing whether or not there is an influence of cash flows from operating activities, cash flows from investing activities and cash flows from financing activities on company liquidity in the consumer goods industry sub-sector which is listed on the IDX (Indonesian Stock Exchange). The data collection method used is documentation. Data analysis techniques using quantitative descriptive analysis. And data collection technique is to use documentation. The results of this study are that partially cash flows from operating activities have no effect on company liquidity while cash flows from investing activities and cash flows from financing activities have an influence on company liquidity. Simultaneously operating cash flow, investment cash flow and funding cash flow have an influence on company liquidity.

THE EFFECT OF CHANGES IN ACCOUNTING PROFIT AND CASH FLOW COMPONENTS ON STOCK RETURNS INPLANTATION SUBSECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE 2017-2020

This study aims to determine the effect of changes in accounting earnings, operating cash flows, investment cash flows, funding cash flows on stock returns. The sample in this study were 10 plantation sub-sector companies listed on the Indonesia Stock Exchange in 2017-2020. The sampling technique used is purposive sampling. The analysis technique used in this research is multiple linear regression. Based on the results of the simultaneous test of accounting profit variables, operating cash flows, investment cash flows, funding cash flows have a significant effect on stock returns. While partially there are three variables that have a significant effect on stock returns, namely accounting profit, operating cash flow, funding cash flow, while the investment cash flow variable has no significant effect on stock returns. The close relationship that occurs between the variables of accounting profit, operating cash flow, investment cash flow, funding cash flow to stock returns is moderate, with Adj R square of 0.181 or 18.1% while the remaining 81.9% is explained by other variables that are not included. in this research.

Analisis Kelayakan Investasi Pengembangan Perumahan Subsidi di Kabupaten Aceh Tamiang

The construction of subsidized housing projects continues to increase every year. This development must be in line with the benefits received by developers of subsidized housing, especially regarding investment costs, which need to be analyzed for suitability based on the benefits obtained. The developers need to make a decision in allocating the amount of funds they currently have, with the aim of gaining profits and increasing that value in the future. The technical aspect determines that the developers have carried out development in accordance with the standards set by the government. Analysis of housing investment needs to be carried out, including from the technical and financial aspects, to find out how much benefit has been obtained from the housing business that has been going on so far. The review of the technical aspects includes the height of the subsidized house building, the Basic Building Coefficient (BBC), the Building Floor Coefficient (BFC) and the accessibility of the location. Furthermore, the analysis of financial aspects using the Net Present Value (NPV) and Benefit Cost of Ratio (BCR) methods. From the results obtained, the construction of Mutiara Residence II Housing in Aceh Tamiang Regency has met the requirements from the technical aspect with a building height of 15 m, BBC and BFC 30% as well as accessibility close to the city center, offices, houses of worship and health centers, with mileage less than 10 minutes. The feasibility of the financial aspect is calculated using the NPV and BCR methods with NPV 0 and BCR 1, so the cash flow for proper investment and meets to be implemented for the development of subsidized housing development. The return on investment obtained ranges from 8% to 10%. From the results of the projection for the development of subsidized housing development using sensitivity analysis, an addition of 20% was carried out on certain elements, it was found that from a financial aspect it was still adequate and feasible to add 20% with the selling price in accordance with government regulations which increased every year.

The effect of ownership structure on investment decisions under exogenous shocks

AbstractResearch Question/IssueWe assess how ownership concentration influences the sensitivities of expansion investments and maintenance investments to changes in a firm's cash flow. We find the causal effect by exploiting the exogenous variation in the price of a firm's product. We also evaluate whether state versus private ownership affects the impact of ownership concentration on investment–cash flow sensitivities.Research Findings/InsightsUsing detailed data from 134 major copper mines operating in 29 countries over a 17‐year period, we show that a more concentrated ownership increases the sensitivity of expansion investments to changes in a firm's cash flow, while we do not detect a significant effect for maintenance investments. We also find that state ownership negatively moderates the effects of ownership concentration on the expansion investment–cash flow sensitivity.Theoretical/Academic ImplicationsThe findings improve our understanding of ownership structures and show the nuances of these structures when different ownership features are combined in the assessment of investment sensitivities.Practitioner/Policy ImplicationsThe asymmetric effects of ownership structures on different investment sensitivities call for a more fine‐grained analysis of incentives, benchmarking, and information disclosure policies. This issue is especially relevant in state‐owned enterprises (SOEs) and in firms with a low ownership concentration.

Effect of debt structure concentration on the investment–cash flow sensitivity of Brazilian companies

PurposeThis paper aims to analyze whether a relationship exists between the debt structure concentration and investment–cash flow sensitivity of Brazilian companies.Design/methodology/approachThe study is based on a sample of 500 Brazilian firms (337 unlisted and 163 listed) in the 10-year period from 2010 to 2019 analyzed according to the investment–cash flow sensitivity model.FindingsThe results show evidence that companies with more concentrated debt structures tend to have lower investment sensitivity to internal cash flow. In other words, firms with a greater concentration of debts tend to have less investment–cash flow sensitivity. In general, the results are robust to (1) variation of the debt concentration proxy and the independent variable; (2) the control of fixed effects in different dimensions and (3) use of estimator for endogeneity treatment, i.e. two-stage least squares (2SLS) and generalized method of moments (GMM).Originality/valueVarious studies have investigated whether specific financing sources reduce financial constraints, but few have addressed the relationship between debt concentration and these constraints. Besides this, to the best of the authors’ knowledge, no previous study has investigated the mentioned relationship in a sample of unlisted firms. This analysis is relevant since the effects of financial constraints tend to be stronger on companies that have restricted access to the capital market.