scholarly journals Financing the Enterprise

2021 ◽  
pp. 69-79
Author(s):  
Jean-Pierre Jeannet ◽  
Thierry Volery ◽  
Heiko Bergmann ◽  
Cornelia Amstutz
Keyword(s):  
Cash Flow ◽  
External Financing ◽  
Family Resources ◽  
Financial Policies ◽  
Personal Savings ◽  
The Many ◽  
Financial Practices

AbstractThis chapter examines the many different pathways company founders and successors pursued to finance their businesses, as well as the financial practices adopted to assure the longevity of the companies. Describing frugal beginnings such as setting up in garages and old factory buildings to start, the chapter deals with the bootstrapping mentality and experience with tapping family resources or personal savings. SME experience with leveraging external financing are reported. Finally, the chapter concludes with experiences of SMEs financing themselves internally, such as based upon cash flow and applying conservative financial policies.

scholarly journals THE EFFECT OF FINANCIAL CONSTRAINT MODERATION IN CASH FLOW SENSITIVITY TO EXTERNAL FINANCING OF MANUFACTURING COMPANIES

2020 ◽  
Vol 10 (1) ◽  
pp. 65
Author(s):  
Abu Hasan Ahmad ◽  
Maria Adventia Mentari Mayang Cardicna
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Order Theory ◽  
Debt Financing ◽  
Financial Constraint ◽  
External Financing ◽  
Manufacturing Companies ◽  
Short Term ◽  
Flow Sensitivity ◽  
Cash Flow Sensitivity

This study aims to test the pecking order theory by looking at the level of cash flow sensitivity as a source of internal financing for all types of external financing (debt and equity). This testing also considering the financial constraint variable as moderation. The data used are the financial statements of manufacturing companies listed on the Indonesia Stock Exchange in 2014 - 2018. The dependent variable is all types of external financing (debt and equity). Debt financing is divided into two forms, short-term debt financing and long-term debt financing. While the independent variable is cash flow. The results obtained is that cash flow does not substitute all types of external financing, and the highest cash flow sensitivity occurs in short-term debt financing. The next result is that financial constraint strengthen the sensitivity of cash flow to debt and equity financing

The Sensitive Dynamic Study of Business Investment Decision-Making on Cash Flow

2011 ◽  
Vol 403-408 ◽  
pp. 394-399
Author(s):  
Zhe Fan Piao ◽  
Mei Rong Ni
Keyword(s):  
Cash Flow ◽  
Factor Model ◽  
Investment Decision ◽  
External Financing ◽  
Manufacturing Companies ◽  
Flow Sensitivity ◽  
Investment Decision Making ◽  
Cash Flow Sensitivity ◽  
Euler Model ◽  
Financial Market Development

This study bases on investment - cash flow related theories and Euler model, references to the research of Forbes(2003) and Jaewoon Koo(2005), exports investment- cash flow sensitivity and impact factor model , makes 77 of China's listed manufacturing companies as a sample, uses the empirical to analyze (I/K)i,t-1,(S/K)i,t, (CF/K)i,t, and also to analyze whether external financing , corporate nature (whether are state-owned enterprises), the degree of financial market development, the period around the financial crisis, the effect (fi+d)thave an impact on investment - cash flow. The empirical results show that although China's listed companies as a whole show a strong investment - cash flow sensitivity, this phenomenon is not just caused by financing constraints, trade-off theory or agency problems, but by the type of the company.

The Effect of Cash Flow Stability and Financial Policies on Brand

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Ghodratollah TALEBNIA ◽  
Fatemeh FADAEIYAN
Keyword(s):  
Cash Flow ◽  
Flow Stability ◽  
Financial Policies

scholarly journals Financial Constraints and Financial Crises: The Case of Portuguese Listed Companies

2018 ◽  
Vol 9 (2) ◽  
pp. 64
Author(s):  
Luísa Pereira ◽  
Armando Silva ◽  
Sónia Nogueira Silva
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Cash Flow ◽  
Financial Constraints ◽  
External Financing ◽  
General Index ◽  
Efficient Measure ◽  
Final Sample ◽  
Recent Financial Crisis ◽  
Higher Sensitivity

The purpose of this study is to analyze the degree of financial constraints faced by the companies included on the Portuguese Stock General Index when accessing to external financing, especially after the beginning and during the most recent financial crisis that affected the world financial markets from 2007. According to this aim, a longitudinal database is collected from the SABI database and was analyzed under panel data methodology. The final sample is panel data of 430 firm-year observations, related to 43 companies, during the period 2006-2015.In line with previous literature, our results provide evidence that the payout ratio is an efficient measure of the degree of financial constraints; companies that pay out less (or no) dividends display higher sensitivity of the investment to the cash flow. Moreover, we also found that the investment sensitivity to cash flow intensifies immediately after and during the most recent financial crisis.

Financial Development and the Cash Flow Sensitivity of Cash

2006 ◽  
Vol 41 (4) ◽  
pp. 787-808 ◽  
Author(s):  
Inder K. Khurana ◽  
Xiumin Martin ◽  
Raynolde Pereira
Keyword(s):  
Financial Development ◽  
Cash Flow ◽  
Financial Constraints ◽  
Cash Holdings ◽  
Cash Flows ◽  
External Financing ◽  
Firm Level ◽  
Investment Projects ◽  
Flow Sensitivity ◽  
Cash Flow Sensitivity

AbstractPrior research posits that market imperfections and the lack of institutions that protect investor interests create a divergence between the cost of internal and external funds, thereby constraining firms' ability to fund investment projects through external financing. Financial constraints force firms to manage their cash flows to finance potentially profitable projects. A related stream of research documents that financial constraints due to costly external financing are more pronounced in underdeveloped financial markets. We examine the influence of financial development on the demand for liquidity by focusing on how financial development affects the sensitivity of firms' cash holdings to their cash flows. Using firm-level data for 35 countries covering about 12,782 firms for the years 1994–2002, we find the sensitivity of cash holdings to cash flows decreases with financial development. We also consider additional implications of firms' cash flow sensitivity of cash with respect to firm size and business cycles. Overall, we provide new cross-country evidence of the role of financial development on financial constraints.

External financing may buoy Tunisia's economy

2015 ◽  
Keyword(s):  
Economic Activity ◽  
Oil Prices ◽  
Coalition Government ◽  
External Financing ◽  
Content Type ◽  
National Budget ◽  
Industrial Action ◽  
Breathing Space ◽  
The Government ◽  
The Many

Subject Prospects for the Tunisian economy since the formation of the coalition government. Significance Headwinds to the Tunisian economy are emerging from many directions: industrial action, a security-related shock to tourism and poor rainfall are all providing significant resistance to government efforts to stimulate economic activity. A great deal of focus will turn to how the government handles the many economic and security disruptions it faces. Impacts The decline in global oil prices gives the government some modest breathing space for the national budget. It should also lay the groundwork for longer-term subsidy reduction. However, it will not provide much of a boost to the economy since it is not directly passed through to businesses and consumers.

How Do Firms Allocate Internal Cash Flow? The Effect of Misvaluation and Costly External Financing

2011 ◽  
Author(s):  
Xin Chang ◽  
Sudipto Dasgupta ◽  
George Wong
Keyword(s):  
Cash Flow ◽  
External Financing ◽  
Internal Cash Flow

The Study on Relationship between Financing Constraints and Investment-Cash Flow Sensitivity in Chinese Listed Companies

2011 ◽  
Vol 268-270 ◽  
pp. 1844-1849
Author(s):  
Chang Chun Li
Keyword(s):  
Cash Flow ◽  
Logistic Regression Model ◽  
Listed Companies ◽  
Financial Data ◽  
Financing Constraints ◽  
External Financing ◽  
Flow Sensitivity ◽  
Chinese Listed Companies ◽  
Cash Flow Sensitivity ◽  
The Relationship

This paper uses the financial data of all Chinese listed companies to construct two indexes that reflect the degree of external financing constraints faced by firms, using logistic regression model and multiple discriminate analyses respectively. Second, the author examines the relationship between financing constraints and the investment-cash flow sensitivity using OLS regressions. This paper provides evidence that the relationship between financing constraints and investment-cash flow sensitivity is monotonic, which is consistent with the findings of FHP(1988).

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