Cash Flow Ratios’ and Liquidity Ratios’ Analysis of Selected Listed Companies in Sri Lanka

This paper examines the nature of interaction between Kida’s model, the cash flows (operating, investing, financing) and the size. It covers the period between 2013 and 2014 based on annual financial statement of Palestinian listed companies in Palestine Stock Exchange. In order to test the hypotheses of the study, the researcher used independent samples T-test. The results show that we accept all null hypotheses, so Kida’s model does not distinguish between high and low cash flow (operating, investing, financing) and the size. Other results show that the model is unable sometimes to predict the failure of companies.

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An empirical research study on investment expenditure & cash flow based on growth differences of listed companies: Evidence from China

2011 International Conference on Management Science & Engineering 18th Annual Conference Proceedings ◽

10.1109/icmse.2011.6070052 ◽

2011 ◽

Author(s):

Li Yan-xi ◽

Liu Ling ◽

Chen Ke-jing ◽

Li Ning

Keyword(s):

Empirical Research ◽

Cash Flow ◽

Research Study ◽

Listed Companies ◽

Investment Expenditure ◽

Growth Differences

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Dividend policy determinants of Sri Lankan firms: a triangulation approach

Managerial Finance ◽

10.1108/mf-03-2018-0096 ◽

2019 ◽

Vol 45 (1) ◽

pp. 2-20 ◽

Cited By ~ 4

Author(s):

H. Kent Baker ◽

N. Jayantha Dewasiri ◽

Weerakoon Banda Yatiwelle Koralalage ◽

Athambawa Abdul Azeez

Keyword(s):

Sri Lanka ◽

Survey Data ◽

Cash Flow ◽

Dividend Policy ◽

Hybrid Approach ◽

Secondary Data ◽

Free Cash Flow ◽

Primary Data ◽

Sri Lankan ◽

Content Type

PurposeThe purpose of this paper is to identify the dividend policy determinants of Sri Lankan firms and why they pay dividends.Design/methodology/approachThe study uses several quantitative approaches to investigate dividend determinants using market (secondary) data of 190 Sri Lankan firms and 1,330 firm-year observations. Dividend determinants are also identified using survey (primary) data from 141 of the 190 firms. Triangulation is then used to facilitate validation of the data through cross-verification from two data sources.FindingsAnalysis of the market data reveals that firm size, industry impact, corporate governance, free cash flow, earnings, past dividends, profitability, investment opportunities, net working capital, concentrated ownership structure and investor preference represent the most important dividend determinants. Survey data confirm these findings. The evidence supports the pecking order, signaling, free cash flow, catering and outcome theories using both secondary and primary data and the bird-in-the-hand theory using survey data.Research limitations/implicationsThe findings are useful not only for corporate decision makers in establishing an appropriate dividend policy but also for shareholders in making investment decisions. Because the current study is limited to Sri Lanka, future researchers should study the same phenomenon in other countries using the triangulation approach.Originality/valueThis study provides a hybrid approach to dividend policy research by using both primary and secondary data in a single study. It is the first dividend study in Sri Lanka to use a triangulation approach.

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Sources of origin of operating cash flows in Polish listed companies

Kwartalnik Nauk o Przedsiębiorstwie ◽

10.5604/01.3001.0010.7452 ◽

2017 ◽

Vol 45 (4) ◽

pp. 69-76

Author(s):

Edyta Mioduchowska-Jaroszewicz

Keyword(s):

Cash Flow ◽

Capital Market ◽

Intangible Assets ◽

Listed Companies ◽

Cash Flows ◽

Investment Expenditure ◽

Research Hypothesis ◽

Operating Cash Flows

The aim of the article was to conduct a research on the origin of operating cash flows in Polish listed companies. The main objective of the article was to investigate the level of depreciation and its use in the operating cash flows of companies operating on the Polish capital market. The first was to examine and analyse that depreciation is the main source of the cash flow from businesses. The second hypothesis was a complement to the first hypothesis and concerned the examination of whether 100% of the depreciation was transferred to the investment expenditure. The results of the study presented in the article on depreciation in operating cash flows as the main source of operating cash have been positively confirmed. The average depreciation level ranges from 31% to 47%. The rela-tionship between investment expenditures and depreciation was also examined. Research shows that depreciation is wholly attributable to investment expenditures related to the acquisition of property, plant and equipment and intangible assets, or its value exceeds expenditure. This situation positively confirms the second research hypothesis that depre-ciation is used as investment expenditure.

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Investment-cash flow sensitivity and financial constraints: evidence from Pakistan

South Asian Journal of Global Business Research ◽

10.1108/sajgbr-08-2015-0054 ◽

2016 ◽

Vol 5 (3) ◽

pp. 403-423 ◽

Cited By ~ 4

Author(s):

Yasir Riaz ◽

Yasir Shahab ◽

Robina Bibi ◽

Shumaila Zeb

Keyword(s):

Panel Data ◽

Financial Markets ◽

Cash Flow ◽

Market Integration ◽

Financial Constraints ◽

Generalized Method Of Moments ◽

Listed Companies ◽

Developed Countries ◽

Content Type ◽

Cash Flow Sensitivity

Purpose The purpose of this paper is to provide new insights about investment-cash flow sensitivities (ICFS) as a representative of financial constraints, by examining panel data consisting of 288 listed firms in Pakistan. Design/methodology/approach This study uses a panel data methodology and first difference generalized method of moments to control the problems of heterogeneity and endogeneity. By five different criteria, estimations are made for full and pre-classified sub-samples. Sargan test and Arellano-Bond serial correlation statistic are used for identification and validation of instruments and model. Findings According to the results, the ICFS has increased monotonically with the level of financial constraints. Further, the results depict that ICFS for the constrained group is much higher as compared to the unconstrained group. Overall, the result illustrates positively significant ICFS. Practical implications This study confirms signs of imperfections in the capital market, which leads to financial markets inaccessibility preceded by high under-investment costs and low social and economic development. Thus, proper policy designing and instigation are necessary for the subsidies, taxation, and foreign direct investment and later for financial market development and promotion of private corporate investment. Originality/value Previous studies have mostly focused on developed countries where large listed companies work in well-developed financial markets and do not face severe financial constraints because of the greater market integration (Bekaert et al., 2011, 2013) and superior investor protection laws (Djankov et al., 2008; La porta et al., 1998). However, this study focuses on listed companies from the emerging Pakistani market, which will bring forth the interesting aspects of ICFS and will enhance the existing literature effectively.

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