The impact of cash flow management versus accruals management on credit rating performance and usage

2019 ◽  
Vol 54 (4) ◽  
pp. 1163-1193
Author(s):  
Eliza Xia Zhang
2014 ◽  
Vol 21 (2) ◽  
pp. 170-189 ◽  
Author(s):  
Tarek Zayed ◽  
Yaqiong Liu

Purpose – Construction projects are well known for their complexity and ambiguity. These projects carry out higher risk than traditional ones because they entail high capital outlays and intricate site conditions. Poor financial management of these projects may lead to bankruptcy; therefore, effective cash flow management is essential. Although the peculiar characteristics of construction projects, the accuracy of cash flow forecasting has been a long lasting problem. The paper aims to discuss these issues. Design/methodology/approach – Many unforeseen factors affect the cash flow forecasting of construction projects. Therefore, the objective of the presented research in this paper is to examine the impact of these factors on contractor's cash flow. A model has been established by integrating analytic hierarchy process and simulation to examine the impact of various factors on cash flow. Data on the selected factors have been collected through questionnaires from various agencies in North America and China. Findings – Results show that the most significant factors are: change of progress payment, payment duration, financial position of the contractor, project delays, and poor planning. It also shows that the effect of cash inflow factors varied approximately from 9.7 to 16.3 percent with a mean value of 12.4 percent. Research limitations/implications – The implementation of the developed models are limited to few case study projects in testing the models. However, the developed models and framework are sound for future improvement. They are considered as a major step toward a broader cash flow planning. Practical implications – The developed methodology and models play essential roles in decision-making process. Originality/value – The developed model is expected to help contractors realistically forecast project cash flow under uncertainty. This may lead to more dependable and professional cash flow management, which might substantially reduce failures in construction business.


2022 ◽  
Vol 955 (1) ◽  
pp. 012007
Author(s):  
B Setiyono ◽  
S I Wahyudi ◽  
H P Adi

Abstract The Randugunting Dam, located in Blora Regency, is planned to have a capacity of 10.40 million m and is expected to irrigate an area of 630 Ha, providing a raw water supply of 0.15 m/second. The construction activity of the Randugunting Dam is one of the construction works that has been affected by the Covid-19 pandemic, namely cash flow is hampered. Therefore we need an analysis of cash flow management scenarios and determining strategies for handling the impact of the pandemic on implementation. The data used in this study is the result of interviews with the project implementation team for the Randugunting Dam construction, and data on the project cost budget. Cash flow management analysis is carried out by applying 3 scenarios, namely: scenario 1 (fixed time), scenario 2 (slowed down time), and scenario 3 (accelerated time). The analysis was carried out with the help of the Microsoft Project 2010. The determination of the handling strategy in this study used the DSS (Decision Support System) method, and the SWOT (Strength, Weakness, Opportunity, and Threat). The results of the study chose scenario 3, which is to speed up the time of 6 months. Acceleration is done by increasing the working time. The annual cost required is higher than scenario 1 (fixed time) and 2 (delayed time by 7 months), but the building is completed faster and can be used immediately. The strategy generated by SWOT analysis is Diversity Strategy and produces 8 (eight) strategies. Diversity Strategy is a strategy by maximizing internal strength factors (S), namely increasing the internal capabilities of project implementers and avoiding external threat factors (T), especially related to the Covid-19 pandemic.


Author(s):  
Muhammad Adil Keerio ◽  
Arifa Bano Talpur ◽  
Tooba Ameen ◽  
Meer Hassan Mari

Purpose: The study examined the impact of cash flow management practices on Pakistani cement firm’s financial performance with comparison of Indian cement sector’s selected firms. Methodology: The Pooled OLS Regression is applied with the Help of EViews software. The data collection is from official websites of the concerned companies from 2009 to 2018 with help of secondary source. The multiple regressions, Random Effect Model and Fixed effect models are used for the analysis of data and confirmed with Husman test. Findings: The finding of this study for both selected countries indicated the influence of cash flow management practices wherein both countries cement producing companies shows significant impact on firm’s performance but in terms of Pakistan Return on Assets have no impact on firm’s Profitability. Implications: Therefore, after a careful analysis study recommended that cement manufacturing companies must reevaluate their practices of managing cash flows in order to generate more profitability and generate enough cash to meet their obligations.


2020 ◽  
Vol 6 (1) ◽  
pp. 39
Author(s):  
Mohd Fisal Ishak ◽  
Kartina Alauddin ◽  
Mohd Shahrol Hafiz Ibrahim

Payment in the Malaysian construction industry has generally been an issue of concern. Late and non-payment problem is endemic in construction and needs to be addressed. The aim of this study is to investigate the issues related to late and non-payment based on the building materials suppliers’ perspective. Questionnaires were distributed to suppliers of building materials in the Klang Valley. Findings from the study shows the main cause of late and non-payment is the paymaster’s poor financial management while the main effect of late and non-payment is problem with the cash flow.  The most recommended possible solution to cope with the issue is for the paymaster to conduct training on financial and cash flow management to the management team in the company.  


1976 ◽  
Vol 102 (4) ◽  
pp. 615-627
Author(s):  
Kenneth F. Reinschmidt ◽  
Walter E. Frank

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