Cash Value Research Articles

Green credit policy and corporate cash holdings: Evidence from China

AbstractIn 2012, China implemented a green credit policy (GCP) that restricts bank credits to heavily polluting firms. Using a difference‐in‐differences research design, we find that polluting firms increased their cash reserves by 9.5% after the GCP's issuance relative to non‐polluting firms. We also document that the GCP significantly reduces firms' access to bank finance but increases the value of cash. Cross‐sectional analysis shows that the increase in cash holdings is more significant for firms with greater financial constraints, firms with more investment opportunities, and high‐tech companies. Overall, our findings are consistent with a constraint explanation: when external financing is restricted, firms retain more cash to meet future investment needs.

To Investigate the Mechanical Properties of Concrete by Partial Replacement of Cement with Ceramic Tiles Waste Powder and Addition of Jute Fiber

Abstract: The need for natural and non-renewable resources has grown as a result of the continuing development of society and human endeavours. As a result, the amount of industrial solid waste products kept growing. The most widely used man-made material in the world, concrete, has generated a lot of interest as a potential method for recycling solid waste. About the same amount of CO2 is produced during the manufacture of 1 tonne of Portland cement. The cement sector is thought to be responsible for 5% to 8% of yearly global greenhouse gas emissions. The use of waste materials in our current concrete can lessen the environmental pollution. Put the scenario in a critical state employing alternate approaches and come up with a better material recycling solution. As additional cementitious materials, a variety of by-products, including fly ash, slag, and silica fume, are successfully used every day in the manufacturing of concrete (SCM). According to the research it has been found that about 150 million tons of ceramic have been produced per year. From that total production, around 25% to 35% has become waste material without recycling from the ceramic industry at present. The ceramic powder has various advantages such as cost - saving, energy Saving and reduces the hazards materials to the environment. Ceramic waste can be used in concrete to increase the compressive strength and physical and chemical properties of concrete. It has been established that the addition of evenly distributed, tightly spaced Fibers to concrete will significantly enhance its static and dynamic properties and act as a crack arrester. Concrete that has been reinforced with fibrous material, or fiber-reinforced concrete (FRC), has a higher structural stability. It is important to note that jute is sometimes referred to as the golden fibre owing to its high cash value and its colour. It improves the shear and punching resistance of concrete, aid in recovering post-cracking strength losses, increases the toughness and become an effective way for reinforcement. In this experimental work, partial replacement of cement by ceramic tiles waste powder by percentages of 0%, 15%, 20%, 25% and 30% with expansion of Jute Fiber at different rate as 0%, 0.25%, 0.50%, 0.75% and 1.0% are done to make sustainable concrete. All specimens were cured for 7days and 28 days before testing. From the study it has been observed that the test results shows optimum proportion for concrete mix and are within acceptable limits.

Product market competition and the value of corporate cash: An agency theory explanation

In this paper, we document the effect of product market competition on cash value and provide evidence supporting the agency discount mechanism. Using the regulation-induced IPO suspensions in China as shocks to product market competition, we find that reduced competition threat, induced by competitors' IPO delay, decreases incumbent firms' value of cash reserve. The effect of IPO suspension on cash holding is more pronounced for companies with severe agency problems and loose governance mechanisms but not statistically different across high and low predation threats. Furthermore, we show that the marginal value of cash increases when IPO restarts, and our baseline results hold in both a large sample and a matched sample of firms. Our paper contributes to the literature by providing the plausibly causal effect of product market competition on cash value and an explanation from the perspective of competition's disciplinary role in mitigating managers' slack.

Pandemi Covid-19 Dan Kas Di Tangan

This study aims to test whether the impact of the Covid-19 pandemic has an effect on increasing company’s cash on hand. The data used in this study are secondary data in the form of annual financial reports for the 2019-2020 period and information disclosure reports related to the impact of the 2020 Covid-19 pandemic on manufacturing companies listed on the Indonesia Stock Exchange. The method used to determine the data sample is purposive sampling technique. This research is a descriptive study with a quantitative approach, and uses data analysis techniques in the form of multiple linear regressions. The results obtained indicate that the impact of the Covid-19 pandemic has a negative effect on changes in the increase in the value of cash in the company. The findings of this study are expected to be considered for investors and potential investors regarding the return on their investment decisions for manufacturing companies affected by the crisis, namely the Covid-19 pandemic. Another expected benefit is to add to the literature in the academic field that discusses the impact of the Covid-19 pandemic on changes in the increase in cash on hand in manufacturing companies listed on the Indonesia Stock Exchange.
 
 Keywords: Covid-19 pandemic, Covid-19 Pandemic Impact, Cash on Hand, Manufacturing Companies

Most recent, modal, or median heroin purchase: Does it matter when estimating market size?

BackgroundAssessing the size of illicit drug markets is an important activity of many government agencies; however, the expenditure-based method for estimating market size relies on the relatively untested assumption that the cash value of the most recent purchase is representative of the average purchase amount. Using panel data, we test the representativeness of the most recent, modal and median purchase compared to the average purchase amount. MethodsData were drawn from a prior study that collected daily transaction-level purchase data from a sample of 120 people who were using heroin regularly. The same study participants completed two distinct two-week waves of data collection, separated by six months. T-tests and bootstrapping were used to detect differences within each wave between the average cash value of participant heroin purchases and the cash value of their most recent, modal and median heroin purchases. ResultsIn both waves, we found (a) no evidence that the expected value of the most recent purchase differs from the expected value of the average purchase, and (b) the expected values of the modal and median purchases are smaller than the expected value of the average purchase. These results imply that estimates of total market size based on the modal or median purchase will suffer from a significant downward bias, but that estimates based on the most recent purchase will be unbiased. ConclusionsWe provide evidence in support of using the most recent (but not the modal or the median) purchase to estimate market size for heroin.

The effects of financial constraints on the market value of cash in a mandatory dividend context

AbstractThis article aims to shed light on the effects of financial constraints on the value shareholders attribute to cash holdings in firms listed on the Brazilian stock exchange, where corporate law determines that publicly listed companies set aside part of their annual profits for dividend payments. While prior empirical literature provides evidence that cash holdings are more valuable for financially constrained companies than for their unconstrained counterparts, we cannot support the hypothesis that the market value of cash increases as obtaining access to external funds becomes more difficult. Our analysis also reveals that constrained companies do not hold significantly higher cash savings than their unconstrained peers. This last result, in turn, is not in line with the precautionary motive for having cash. Moreover, although the principal argument for adopting mandatory dividend rules in Brazil was to increase the protection of minority shareholders, we observe that the contribution of cash holdings to firm value is still small in Brazil, especially in dual‐class companies, because investors expect cash holdings to be partly consumed as private benefits due to the presence of significant agency problems. This research is relevant because it serves as an additional step in understanding how a legal mechanism established by a government to protect investors affects the contribution of cash holdings to firm value. Governments that intend to adopt mandatory dividend rules to safeguard the cash‐flow rights of minority shareholders can use our findings to make better decisions regarding whether to enforce compulsory dividend payments.

The disciplinary role of product market competition on cash holding

This paper provides evidence supporting the disciplinary role of product market competition on cash holding. We use the regulation-induced IPO suspensions in China as shocks to product market competition. With a generalized difference-in-difference design, we find that reduced competition threat induced by rivals' IPO suspension increases incumbent companies' cash level by 1.0 percentage points. The effect of IPO suspension on cash holding is weakened when the product market is highly competitive before suspensions and more pronounced for companies with severe agency problems and loose governance mechanisms. Furthermore, we document that the marginal value of cash reduces during IPO suspension, and companies' cash level decreases when IPO restarts. Our paper contributes to the literature by providing the plausibly causal effect of product market competition on cash holding and an agency explanation from the perspective of competition's disciplinary role in mitigating managers' slack.

Does the market value the accounting expertise of chief financial officers? Evidence from the market value of cash holdings

AbstractThis study investigates whether and how equity investors value the accounting expertise of chief financial officers (CFOs) in managing cash assets. Using hand‐collected CFO data of S&P 1500 firms from 1999 to 2015, we find that the stock market places a higher value on cash assets when firms replace a non‐accountant CFO with an accountant CFO. Specifically, the market value of an additional dollar of cash increases by 92 cents following such CFO turnovers. Moreover, we find that the positive effect of CFOs’ accounting backgrounds on the market value of cash is particularly evident for firms in low growth industries and firms with weak corporate governance. Our evidence highlights efficient cash management as an important channel through which accountant CFOs contribute to firm value.

Pengelolaan Nilai Tunai Dalam Surplus Underwriting Di Agen Rinto Prudential Syariah Wonosobo

Sharia insurance is one of the products of Islamic Financial Institutions that currently exist among the public today. However, limited public knowledge often causes misunderstandings between the community and insurance participants so that many of them think they are losing money when investing their money for insurance. Whereas in reality, those who invest their funds in insurance products actually get two benefits at once, namely insurance coverage benefits and long-term investment benefits. Therefore, before buying an insurance product, it is necessary to learn more about what insurance product to buy and how to manage the investment. Is the product purchased in accordance with the provisions of the Shari'a or not. Here the author provides an overview of several life insurance products at Prudential Syariah Wonosobo related to investment in more detail. This study uses a field research method where the author conducts research and collects data directly to the research location with qualitative data analysis methods. The results of this study indicate that based on the source of funds and their management, the cash value in this underwriting surplus is in accordance with the theories and concepts in fiqh muamalah, free from elements of usury, gharar and maisir. A clear separation of funds and profit sharing is the hallmark of this sharia insurance.

The impact of a healthy checkout intervention on fruit and vegetable 'micro-pack' purchases in New Mexico.

Produce sold as plastic-wrapped packs of two to four individual items (i.e., produce micro-packs) that are low cost and placed at checkout may appeal to shoppers with budget constraints and provide a second chance to purchase items available elsewhere in the store. This study examined the impact of an intervention that placed produce micro-packs at checkout and promoted them in grocery stores across New Mexico, USA. This quasi-experimental study placed produce micro-packs at checkout end-caps in thirteen stores (group 1), with eight stores serving as controls (group 2) from 1 July 2019 through 31 January 2020 (first phase). The intervention was extended to group 2 stores from 1 February 2020 through 30 June 2020 (second phase). Cashiers were directed to upsell the micro-packs to Special Supplemental Nutrition Program for Women, Infants, and Children recipients who had unspent cash value benefits for produce purchases. Twenty-one grocery stores across New Mexico. Twenty-one produce items sold as micro-packs in stores from July 2019 through June 2020. A random effects model showed that the daily sales of micro-packs increased by 47 % during each intervention period. Group 2 stores had lower sales than group 1 stores during the first phase of the intervention. Once extended to group 2 stores, sales of micro-packs in those stores increased and sales in group 1 stores continued at the higher level. Placing produce micro-packs at checkout may increase produce sales and support health promotion efforts by public and private stakeholders.

Pragmatic Nonviolence: Working toward a Better World

Pragmatic Nonviolence: Working toward a Better World

Adolescent and young adult preferences for financial incentives to support adherence to antiretroviral therapy in Kenya: a mixed methods study.

IntroductionTo develop a patient‐centred financial incentive delivery strategy to improve antiretroviral treatment adherence in adolescents and young adults (AYA) living with HIV in Kisumu, Kenya, we conducted a mixed methods study exploring preferences.MethodsA discrete choice experiment (DCE) and focus group discussion (FGD) were conducted simultaneously to identify preferences for five incentive delivery strategy features: value, eligibility, recipient, format and disbursement frequency. We used consecutive sampling to recruit AYA (14–24 years) living with HIV attending three health facilities in Kisumu, Kenya. We calculated mean preferences, willingness to trade, latent class membership and predictors of latent class membership. The FGD explored preferred incentive features, and, after deductive and inductive coding, qualitative findings were triangulated with DCE results.ResultsTwo hundred and seven AYA living with HIV (46% 14–17 years, 54% 18–24 years; 33% male sex, 89% viral load <50 copies/ml) were recruited to the study (28 October–16 November 2020). Two distinct preference phenotypes emerged from the DCE analysis (N = 199), 44.8% of the population fell into an “immediate reward” group, who wanted higher value cash or mobile money distributed at each clinic visit, and 55.2% fell into a “moderate spender” group, who were willing to accept lower value incentives in the form of cash or shopping vouchers, and accrued payments. The immediate reward group were willing to trade up to 200 Kenyan Shillings (KSH)—approximately 2 US dollars (USD)—of their 500 KSH (∼5 USD) incentive to get monthly as opposed to accrued yearly payments. The strongest predictor of latent class membership was age (RR 1.45; 95% CI: 1.08–1.95; p = 0.006). Qualitative data highlighted the unique needs of those attending boarding school and confirmed an overwhelming preference for cash incentives which appeared to provide the greatest versatility for use.ConclusionsProviding small financial incentives as cash was well‐aligned with AYA preferences in this setting. AYA should additionally be offered a choice of other incentive delivery features (such as mobile money, recipient and disbursement frequency) to optimally align with the specific needs of their age group and life stage.

Costs, Reach, and Benefits of COVID-19 Pandemic Electronic Benefit Transfer and Grab-and-Go School Meals for Ensuring Youths’ Access to Food During School Closures

School meals are associated with improved nutrition and health for millions of US children, but school closures due to the COVID-19 pandemic disrupted children's access to school meals. Two policy approaches, the Pandemic Electronic Benefit Transfer (P-EBT) program, which provided the cash value of missed meals directly to families on debit-like cards to use for making food purchases, and the grab-and-go meals program, which offered prepared meals from school kitchens at community distribution points, were activated to replace missed meals for children from low-income families; however, the extent to which these programs reached those who needed them and the programs' costs were unknown. To assess the proportion of eligible youths who were reached by P-EBT and grab-and-go meals, the amount of meals or benefits received, and the cost to implement each program. This cross-sectional study was conducted from March to June 2020. The study population was all US youths younger than 19 years, including US youths aged 6 to 18 years who were eligible to receive free or reduced-price meals (primary analysis sample). Receipt of P-EBT or grab-and-go school meals. The main outcomes were the percentage of youths reached by P-EBT and grab-and-go school meals, mean benefit received per recipient, and mean cost, including implementation costs and time costs to families per meal distributed. Among 30 million youths eligible for free or reduced-price meals, grab-and-go meals reached an estimated 8.0 million (27%) and P-EBT reached 26.9 million (89%). The grab-and-go school meals program distributed 429 million meals per month in spring 2020, and the P-EBT program distributed $3.2 billion in monthly cash benefits, equivalent to 1.1 billion meals. Among those receiving benefits, the mean monthly benefit was larger for grab-and-go school meals ($148; range across states, $44-$176) compared with P-EBT ($110; range across states, $55-$114). Costs per meal delivered were lower for P-EBT ($6.46; range across states, $6.41-$6.79) compared with grab-and-go school meals ($8.07; range across states, $2.97-$15.27). The P-EBT program had lower public sector implementation costs but higher uncompensated time costs to families (eg, preparation time for meals) compared with grab-and-go school meals. In this economic evaluation, both the P-EBT and grab-and-go school meal programs supported youths' access to food in complementary ways when US schools were closed during the COVID-19 pandemic from March to June 2020.

California WIC Participants Report Favorable Impacts of the COVID-Related Increase to the WIC Cash Value Benefit.

The United States Department of Agriculture approved an increase to the Cash Value Benefit (CVB) for the purchase of fruits and vegetables issued to participants receiving an eligible Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) food package. In order to understand satisfaction, perceptions, and the overall impact of additional benefits for fruits and vegetables at the household level, a qualitative study consisting of structured phone interviews was conducted with families served by WIC in Southern California from November to December 2021 (n = 30). Families were selected from a large longitudinal study sample (N = 2784); the sample was restricted by benefit redemption and stratified by language and race. WIC participants were highly satisfied with the CVB increase, reporting increased purchasing and consumption of a variety of fruits and vegetables. Respondents noted the improved quality and variety of fruits and vegetables purchased due to the increased amount. Findings are expected to inform policy makers to adjust the CVB offered in the WIC food package with the potential to improve participant satisfaction and increase participation and retention of eligible families with benefits from healthy diets supported by WIC.

Does a country's environmental policy affect the value of small and medium sized enterprises liquidity in the energy sector?

AbstractCash management is important for energy SMEs, which, differently from large firms, face severe financial constraints and need to seize growth opportunities to ensure their survival. This paper, analyzing a large sample of European energy SMEs, finds a positive effect of holding a buffer of cash on firm performance. It shows that a stock of cash allows energy firms to prevent negative contingencies and/or achieve valuable growth patterns and investments. Moreover, considering that the energy industry is involved in environmental sustainability policies promoted by national governments, we find that complying with environmental regulations reduces the value of cash. Countries that pay more attention to environmental issues provide energy SMEs with growth opportunities and financial support, reducing the need to hold a stock of cash. A key implication is that, in a context with high environmental concern, energy SMEs have more financial flexibility to guarantee their growth with positive externalities for the energy sector.

Analisis Proses Pengajuan Klaim Nilai Tunai Penuh Melalui Sistem Asuransi Syariah pada PT Asuransi Jiwa Syariah Bumiputera Cabang Medan

PT Asuransi Jiwa Syariah Bumiputera is one of the companies engaged in insurance by adhering to sharia principles. Claiming is the process of asking for guarantees or rights for losses suffered by the insured to the insurance company. This reseaarch is a research wiith qualitative method. The purposse of thiis study is to explaine how the procedure for submitting Full Cash Value at PT Asuransi Jiwa Syariah Bumiputera Medan Branch. From the result’s of the study, it is known thaat the procedure for submitting Full Cash Value at PT Asuransi Jiwa Syariah Bumiputera is quite simple, if the customer who submits a claim has submitted a complete claim application and submitted the documents required by PT Asuransi Jiwa Syariah Bumiputera, the claim will be approved. PT Asuransi Jiwa Syariah Bumiputera Medan Branc already has an informatiion system to manages data and transaction for submitting existing Full Cash Value Claims. However, the implementation is efficient, because there are still submissions made manually and using the media.&#x0D; Keywords: Application Process, Claim, Insurance

The effect of mandatory IFRS adoption on the value of cash: The case of Canada

AbstractThis paper presents evidence that Canada's 2011 adoption of IFRS improved Canadian firms' access to external financing. We use a matched sample of Canadian and US firms and find that the marginal value of cash decreased significantly in Canadian firms following mandatory IFRS adoption in Canada. The post‐IFRS decrease in the marginal value of cash is most evident for firms that have a larger number of similar firms in non‐Canadian IFRS regimes. This is consistent with IFRS creating a uniform set of accounting standards that lowers the information costs of cross‐border financing. We also find larger IFRS‐related decreases in the value of cash for firms with high growth potential and low availability of internal cash.

Effectiveness of monitoring, managerial entrenchment, and corporate cash holdings

We develop a dynamic model of a firm in which cash management is partially delegated to a self-interested manager. Shareholders trade off the cost of dismissing the manager with the cost of managerial discretion over the use of liquid funds. An improvement in corporate governance quality may have a positive or a negative effect on levels and values of cash balances, depending on the source of the improvement. While a reduction of managerial entrenchment results in lower cash balances and mostly higher marginal cash values, we demonstrate that the opposite is true when the monitoring of managerial actions becomes more effective. A managerial asset substitution problem produces a novel hump-shaped relation between the firm's liquidity levels and the collective propensity of shareholders and managers to reduce cash flow risk. We also discuss the firm's risk management strategies as well as derive implications of the presence of an investment opportunity, debt financing, and shareholder activism.

The Proper Treatment of Cash Holdings in DCF Valuation Theory and Practice

Abstract The discounted cash flow (“DCF”) model is widely used for valuing corporate assets. But valuable assets that do not generate cash flows will be missed by the DCF approach. Because cash interest income is generally not included in the projected net cash flows of operating assets, the value of cash is regarded as a non-operating asset whose value must be added to the DCF enterprise value. Unfortunately, it has become standard practice on Wall Street and for the courts to exclude some amount of cash from non-operating assets on the basis that it will be used to finance the immediate operations of the business. The exclusion of so-called “operating” or “working-capital” cash is widely accepted as necessary and is recommended in virtually all valuation texts and treatises. We disagree and show that all cash should generally be added as a non-operating asset, except in unique circumstances where “wasting cash” is not earning a fair market return. We explain that excluding operating cash is correct only if either the interest income on cash is included in the net cash flows projections used to compute DCF value, or if the specific (near-term) operating expenses that will be covered by operating cash are excluded from the net cash flow projections. In either case, the full economic benefits of owning operating cash are fully reflected in the DCF enterprise value of the company, causing the DCF value to be higher by the exact amount of operating cash that is excluded. We call this the symmetry principle of operating cash. In practice, neither condition is normally met, so that all cash should generally be treated as a non-operating asset.

The Effects of the Degree of Internationalization on the Market Value of Cash

In this paper, we advance the literature on cash holdings and international business by analyzing whether the degree of internationalization influences the value investors place on cash holdings in Latin American companies. Consistent with the research hypothesis, we find strong and robust evidence that investors do not perceive the cash holdings of multinational corporations from Latin America or Multilatinas as providing greater benefits relative to the cash of their domestic peers. As a consequence, we document that investors do not place a higher value on the cash of Multilatinas than on that of Latin American domestic companies, despite the fact that the former has higher growth opportunities. This paper is an important step in understanding Latin America and the multinational corporations from this region. Furthermore, our research has implications for managers of multinational corporations that have subsidiaries in countries with valuable growth opportunities, but the risk of cash expropriation is substantial due to the poor protection of shareholders rights. Finally, our study also highlights the relevance of considering the mandatory disclosure of foreign cash, in location and amount, to improve efficiency in stakeholder decision-making and also to advance the understanding the effects of foreign cash on Multilatinas' investment decisions.