The impact of cost structure on supply chain cash flow risk

2017 ◽  
Vol 55 (22) ◽  
pp. 6624-6637 ◽  
Author(s):  
Chih-Yang Tsai
Keyword(s):  
Supply Chain ◽  
Cash Flow ◽  
Cost Structure ◽  
Cash Flow Risk ◽  
The Impact

scholarly journals Analysis on financing structure and default probability of listed companies

2021 ◽  
Vol 292 ◽  
pp. 02032
Author(s):  
Xiangyun Luo ◽  
Miao Luo
Keyword(s):  
Cash Flow ◽  
Default Risk ◽  
Listed Companies ◽  
Mediating Effect ◽  
Default Probability ◽  
Probability Of Default ◽  
Financing Structure ◽  
Debt Default ◽  
Cash Flow Risk ◽  
The Impact

This paper studies the relationship between the financing structure and the probability of default of A-share listed companies from 2001 to 2020. The purpose is to prevent the occurrence of default and ensure the healthy development of various industries. It is found that the higher the proportion of external financing is, the higher the probability of default is. The impact of debt financing on default risk is higher than equity financing. In addition, this paper tests the mediating effect of cash flow risk, and the effect of financing structure on debt default probability is heterogeneous among regions and enterprises. These findings show that enterprises must control their financing structure, optimize the allocation of resources, prevent cash flow risk, reduce the probability of debt default, so as to make various industries flourish and optimize the industrial structure.

Cash Hedging in a Supply Chain

2019 ◽  
Vol 65 (8) ◽  
pp. 3928-3947 ◽  
Author(s):  
Panos Kouvelis ◽  
Xiaole Wu ◽  
Yixuan Xiao
Keyword(s):  
Supply Chain ◽  
Cash Flow ◽  
Cost Reduction ◽  
Cash Flows ◽  
Market Size ◽  
Flexibility Effect ◽  
Internal Funds ◽  
Cash Flow Volatility ◽  
The Cost ◽  
The Impact

We study hedging cash-flow risks in a supply chain where firms invest internal funds to improve production efficiencies. We offer a decomposition framework to capture the cost-reduction and flexibility effect of hedging. It allows us to understand how a firm’s hedging choice depends on its supply chain partner’s decision, and how such interaction is affected by supply chain characteristics such as market size, cash-flow volatility, and correlation. When firms’ cash flows are independent of each other, they are more likely to hedge with a larger market size. When cash flows are correlated, the impact of market size and volatility on firms’ hedging decisions presents multiple patterns, contingent on whether their risks amplify or offset each other. This paper was accepted by Gustavo Manso, finance.

scholarly journals Construction Cash Flow Risk Index

2021 ◽  
Vol 14 (6) ◽  
pp. 269
Author(s):  
Hasan Mahmoud ◽  
Vian Ahmed ◽  
Salwa Beheiry
Keyword(s):  
Risk Factors ◽  
Construction Industry ◽  
Cash Flow ◽  
Construction Projects ◽  
Risk Index ◽  
Relative Importance ◽  
Capital Projects ◽  
Cash Flow Forecasts ◽  
Cash Flow Risk ◽  
The Impact

As investment increases in capital projects, financial risks increase, and cash flow prediction and control become more paramount. Higher risks could hinder project performance and increase the chances of failure in multiple aspects of a project. While there are models that aim to assess and forecast risks in the construction industry, none present a technique to include the impact of risks on a project’s cash flow. Therefore, cash flow forecasts tend to exceed the actual cash flow of a project due to inaccurate risk assessment. Thus, this paper presents the Cash Flow Risk Index (CFRI) development process quantifying the impact of risks on a project’s cash flow from an owner’s perspective. To that end, the study explored the literature to identify the risk factors that might impact a construction projects’ cash flow and uncovered 44 factors. The study also validated and consolidated these factors to build a CFRI via a Delphi exercise, which reduced the factors from 44 to 36. In further iterations, the 36 factors were also shared with 32 construction industry professionals to rate their relative importance on a five-point Likert scale, from which relative importance index and weights were obtained. As a result, the CFRI was developed to measure the impact of different risk factors on a typical construction project’s cash flow.

scholarly journals Internal Control, External Audit and Corporate Cash Flow Risk

2021 ◽  
Vol 292 ◽  
pp. 02016
Author(s):  
Wanting Liu ◽  
Qianyu Zhao ◽  
Gang Fu
Keyword(s):  
Cash Flow ◽  
Internal Control ◽  
Listed Companies ◽  
Governance Mechanisms ◽  
High Quality ◽  
External Audit ◽  
External Resources ◽  
External Governance ◽  
Cash Flow Risk ◽  
The Impact

Based on the sample of A-share listed companies in Shanghai and Shenzhen from 2014 to 2019, this paper empirically tests the impact of internal control and external audit on corporate cash flow risk and the interaction between the two in affecting cash flow risk. The results show that high-quality internal control and external auditing can independently reduce corporate cash flow risks, and the two play a substitute effect in this process. The research conclusions expand the impact of the company’s internal and external governance mechanisms on cash flow risks, and are of great significance for companies to effectively use internal and external resources to prevent and manage cash flow risks.

Cash flow risk in dual-channel supply chain

2014 ◽  
Vol 53 (12) ◽  
pp. 3678-3691 ◽  
Author(s):  
Fuguo Zhao ◽  
Desheng Dash Wu ◽  
Liang Liang ◽  
Alexandre Dolgui
Keyword(s):  
Supply Chain ◽  
Cash Flow ◽  
Dual Channel ◽  
Dual Channel Supply Chain ◽  
Cash Flow Risk

scholarly journals The Impact of Bullwhip Effect on the Cash Flow in Two-Parallel Supply Chain Systems with the Competition Effect

2022 ◽  
Vol 2022 ◽  
pp. 1-21
Author(s):  
Xingji Chen ◽  
Jing Zeng ◽  
Xigang Yuan
Keyword(s):  
Supply Chain ◽  
Market Share ◽  
Cash Flow ◽  
Demand Function ◽  
Bullwhip Effect ◽  
Sensitivity Coefficient ◽  
Competition Effect ◽  
Forecasting Accuracy ◽  
Relationship Of ◽  
The Impact

While considering the competition effect and market share, this study discusses how the cash flow bullwhip effect (CFBE) is impacted in two-product and two-parallel supply chain systems by comparing the situation that it has one kind of product in two-level supply chain (SC). Specifically, the study aimed to examine two-product and two-parallel SC systems that include two suppliers and two retailers. Assuming that the demand function is a linear relationship of price self-sensitivity coefficient and price cross-sensitivity coefficient, which is an AR(1) process, two retailers share the demand. After that, the quantitative equation of the CFBE was deduced from two-product and two-parallel SC systems. Finally, we get the condition that the competition effect and the market share increase or decrease the CFBE, which was in contrast to the situation without the competition effect and the market share. The paper suggested that the manager can cooperate with their partner if two products are substitutable. On the other hand, the firm should improve the forecasting accuracy of the customer’s demand and improve the service quality so that it can increase the market share and reduce the CFBE in two-parallel SC systems.

The Impact of a Potential Public/Private Initiative on a Defined Region of the South Suburban Chicago Metropolitan Area

2019 ◽  
pp. 14-32
Keyword(s):  
Supply Chain ◽  
Economic Impact ◽  
Impact Analysis ◽  
Census Data ◽  
Economic Benefits ◽  
Local Economy ◽  
Market Area ◽  
State And Local ◽  
The University ◽  
The Impact

The university is considered one of the engines of growth in a local economy or its market area, since its direct contributions consist of 1) employment of faculty and staff, 2) services to students, and supply chain links vendors, all of which define the University’s Market area. Indirect contributions consist of those agents associated with the university in terms of community and civic events. Each of these activities represent economic benefits to their host communities and can be classified as the economic impact a university has on its local economy and whose spatial market area includes each of the above agents. In addition are the critical links to the University, which can be considered part of its Demand and Supply chain. This paper contributes to the field of Public/Private Impact Analysis, which is used to substantiate the social and economic benefits of cooperating for economic resources. We use Census data on Output of Goods and Services, Labor Income on Salaries, Wages and Benefits, Indirect State and Local Taxes, Property Tax Revenue, Population, and Inter-Industry to measure economic impact (Implan, 2016).

Sign in / Sign up

Export Citation Format

Share Document