Timberland transaction costs and due diligence: a literature review and assessment of research needs

2020 ◽  
Vol 22 (2) ◽  
pp. 199-210
Author(s):  
A. Hiegel ◽  
J. Siry ◽  
P. Bettinger ◽  
B. Mei
Keyword(s):  
Literature Review ◽  
Transaction Costs ◽  
Investment Decisions ◽  
Cash Flows ◽  
Future Research ◽  
Research Needs ◽  
Due Diligence ◽  
Market Participants ◽  
Common Event ◽  
Future Cash Flows

In the last three decades, purchases and sales of large timberland estates have become a common event worldwide. Timberland investments generally entail the purchase of land containing (or suitable for growing) merchantable timber in order to obtain future cash flows and an appreciation in the value of the entire estate. This review documents many of the critical steps involved in a comprehensive due diligence of investable timberland estates, and illustrates the sources and components of the transaction costs involved. Detailed insights into the processes involved in assessing potential timberland transactions and how market participants conduct these transactions are presented. These are followed by the discussion of implications of these findings for investment decisions and the assessment of pertinent research needs. This review attempts to create a framework to discuss and investigate the relevant costs of the due diligence process. Since almost no forestry due diligence literature was discovered, future research may then build upon this framework.

FINANCIAL DERIVATIVES - INTEREST RATE SWAP

2004 ◽  
Vol 10 (3-4) ◽  
pp. 161-168
Author(s):  
Zoran Ivanović ◽  
Elvis Mujačević
Keyword(s):  
Cash Flows ◽  
Basic Form ◽  
Over The Counter ◽  
Interest Rate Swap ◽  
Market Participants ◽  
Forward Contract ◽  
Financial Derivative ◽  
Future Cash Flows ◽  
Interest Payments ◽  
Rate Swap

Swap as a portfolio of forward contract is a financial derivative traded on the over-the-counter market. In its basic form, swap is based on the exchange of future cash flows between two market participants in accordance with the agreed terms. The cash flows that are exchanged are the interest payments and in some circumstances even the notional amount, and transactions are carried out in a period of two to thirty years. Swaps first appeared in 80's, and have evolved from back-to-back loans.

scholarly journals The comparability of IFRS statements of cash flows in Poland. The influence of national regulations

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 149-166
Author(s):  
Edyta Łazarowicz
Keyword(s):  
Literature Review ◽  
Research Methods ◽  
Financial Reporting ◽  
Financial Statements ◽  
Listed Companies ◽  
Cash Flows ◽  
Future Research ◽  
National Accounting ◽  
Accounting Rules ◽  
Statement Of Cash Flows

This paper analyses the comparability of the structure and content of IFRS consolidated statements of cash flows within Polish listed companies and the influence of national accounting rules on these statements. Two research methods have been used: a literature review and an analysis of the content of financial statements. It has been found that there are small differences in the structure and content of IFRS consolidated statements of cash flows in Poland. The results indicate that the options in IAS 7 and the lack of an obligatory format of the IFRS statement of cash flows do not significantly reduce the comparability of these statements in Polish practice. Moreover, it has been observed that Polish listed companies follow national regulations only in some aspects for which IAS 7 provides options or has no regulations at all. The findings of this study may be relevant for standard setters, in particular, the current IASB Primary Financial Statements project, for users of financial reporting, and for academics for future research.

Design for remanufacture: a literature review and future research needs

2011 ◽  
Vol 19 (17-18) ◽  
pp. 2004-2014 ◽  
Author(s):  
G.D. Hatcher ◽  
W.L. Ijomah ◽  
J.F.C. Windmill
Keyword(s):  
Literature Review ◽  
Future Research ◽  
Research Needs ◽  
Design For Remanufacture

Conservatism in Accounting Part I: Explanations and Implications

2003 ◽  
Vol 17 (3) ◽  
pp. 207-221 ◽  
Author(s):  
Ross L. Watts
Keyword(s):  
Earnings Management ◽  
Cash Flows ◽  
Unintended Consequences ◽  
Future Research ◽  
Managerial Behavior ◽  
Financial Reports ◽  
Accounting Regulation ◽  
Shareholder Litigation ◽  
Future Cash Flows ◽  
Important Evidence

This paper is the first in a two-part series on conservatism in accounting. Part I examines alternative explanations for conservatism in accounting and their implications for accounting regulators. Part II summarizes the empirical evidence on conservatism, its consistency with alternative explanations, and opportunities for future research. The evidence is consistent with conservatism's existence and, in varying degrees, the various explanations. Conservatism is defined as the differential verifiability required for recognition of profits versus losses. Its extreme form is the traditional conservatism adage: “anticipate no profit, but anticipate all losses.” Despite criticism, conservatism has survived in accounting for many centuries and appears to have increased in the last 30 years. The alternative explanations for conservatism are contracting, shareholder litigation, taxation, and accounting regulation. The evidence in Part II suggests the contracting and shareholder litigation explanations are most important. Evidence on the effects of taxation and regulation is weaker, but consistent with those explanations playing a role. Earnings management could produce some of the evidence on conservatism, but cannot be the prime explanation. The explanations and evidence have important implications for accounting regulators. FASB attempts to ban conservatism in order to achieve “neutrality of information” without understanding the reasons conservatism existed and prospered for so long are likely to fail and produce unintended consequences. Successful elimination of conservatism will change managerial behavior and impose significant costs on investors and the economy in general. Similarly, researchers and regulators who propose the inclusion of capitalized unverifiable future cash flows in financial reports should consider the costs generated by their proposal's effect on managerial behavior.

scholarly journals Investment sensitivity and managerial decision making behaviour of Indian firms

2013 ◽  
Vol 61 (7) ◽  
pp. 2157-2162
Author(s):  
Pankaj Kumar Gupta ◽  
Jasjit Bhatia
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Information Structure ◽  
Imperfect Information ◽  
Investment Decisions ◽  
Theoretical Models ◽  
Cash Flows ◽  
Agency Conflicts ◽  
Managerial Decision ◽  
Future Cash Flows

Contemporary models of the financial theory support the proposition that the stock prices should be fundamentally a reflection of the discounted value of earnings. Accordingly the investors and analysts should base their expectations on the expected future cash flows that are logically correlated or have a carry over effect vis-ŕ-vis present stream of cash flows. This logically implies that the managers would have an incentive to manipulate investor’s expectation of future cash flows. The zeal to maximize the firm’s value based on market capitalization is expected to have a detrimental effect on the investment decisions leading to sub optimality. Given the imperfect information structure and market pressures, the Indian firms suffer from mispricing and as such the conventional robust theoretical models of agency conflicts cannot be refuted. This motivates us to examine the interrelation ship between the concerns for valuation and investment sensitivity. We use a sample statistics of selected listed firms that represent the CNX Nifty Index and test for the dependence of the investment behavior of the firm, on the sensitivity of the firms’ share prices to its current cash flow represented by surprise earings. We use the earnings response coefficient (ERC) framework proposed by Ball and Brown (1968) for 11 key industries in India. We find that the surpise in accounting earnings announcements is negatively associated with abnormal stock returns and the investment decisions taken by the firms are negatively sensitive to changes in investment opportunities.

scholarly journals Megaprojects, Gentrification, and Tourism. A Systematic Review on Intertwined Phenomena

2021 ◽  
Vol 13 (22) ◽  
pp. 12827
Author(s):  
Marcus Hübscher
Keyword(s):  
Systematic Review ◽  
Literature Review ◽  
Inner City ◽  
Point Of View ◽  
Future Research ◽  
Research Needs ◽  
Brownfield Sites ◽  
Global North ◽  
The Uk ◽  
The U.S

Within the neoliberal context of today’s urbanism, a growing number of inner-city megaprojects aim to transform brownfield sites—accompanied by gentrification and tourism. However, there is no systematic review exploring the interplay between these phenomena. This paper aims to systemize the existing scientific contributions by means of a literature review. Using different databases, a total number of 797 scientific documents have been identified. After several screening steps, a final set of 66 studies was included in the review. I present an analysis from a quantitative and a qualitative perspective, exploring bibliometric aspects, concepts, methods, and relevant lines of discussion. The area studied is a relatively young and emerging field. Within the discussion, there is a strong dominance of countries located in the global north, with Spain, the UK, and the U.S. at the forefront. From a methodological point of view, qualitative and mixed methods are mostly applied. The discussion of megaprojects, gentrification, and tourism has an important descriptive focus, with main topics such as planning, justice, and motivations. There are considerable conceptual deficits, as one-quarter of the studies do not clearly explain their methods. Future research needs to find ways to enable knowledge transfer to planning practice.

The Due Diligence Process

2011 ◽  
pp. 1-46
Author(s):  
Stephen J. Andriole
Keyword(s):  
Literature Review ◽  
Portfolio Management ◽  
Investment Decisions ◽  
Chief Information Officers ◽  
Venture Capitalists ◽  
Due Diligence ◽  
Alternative Technology ◽  
Technology Investment ◽  
Reduce Risk ◽  
Business Technology

As suggested in the preface, due diligence is a process designed to reduce uncertainty and increase the likelihood of productive investments. The focus here is on technology due diligence, or the process by which technology investment decisions are vetted to maximize impact and reduce risk. Research around technology due diligence is sparse. There are only a few analyses and case studies that look at the nuances of due diligence generally and technology due diligence specifically. A literature review reveals very few formal analyses of the overall process, though there are some useful sources, such as Gordon (1996), Harvey and Lusch (1995), Lajoux (2000), Perry and Herd (2004); a few on portfolio management, such as Weill and Aral (2006), and macro trends in business technology (Andriole, 2005). Some analyses have been applied to venture capital due diligence (McGrath, Gunther, Keil, & Tukiainen, 2006), and some in the much larger context of business technology alignment (Prahalad & Krishnan, 2002). As noted in the Preface, very few have focused on technology due diligence. None have focused on technology due diligence from the three intersecting perspectives discussed here. The most relevant discussions for this book focus on merger and acquisition (M&A) due diligence, such as Cullinan, LeRoux, and Weddigen (2004), Breitzman and Thomas (2002), Bing (1996), Lajoux and Elson (2000), Howson (2003), and Perry and Herd (2004). Others focus on venture investing and the due diligence process that some venture capitalists apply (Camp, 2002; Zacharakis & Meyer, 1998). Still others focus on very specific aspects of due diligence—like patents (Panitch, 2000) and, as noted above, very few focus on technology due diligence (Marlin, 1998). This chapter discusses technology due diligence. It first describes the criteria that can be used by Chief Information Officers (CIOs), Chief Technology Officers (CTOs), hardware and software vendors, and venture capitalists (VCs) to vet alternative technology decisions. It then turns to the processes by which due diligence projects can be organized.

scholarly journals Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows and Earnings?

2009 ◽  
Vol 84 (3) ◽  
pp. 893-935 ◽  
Author(s):  
Steven F. Orpurt ◽  
Yoonseok Zang
Keyword(s):  
Cash Flow ◽  
Direct Method ◽  
Cash Flows ◽  
Balance Sheets ◽  
Market Participants ◽  
Future Performance ◽  
Forecasting Performance ◽  
Earnings Forecasting ◽  
Future Cash Flows ◽  
Stated Purpose

ABSTRACT: Motivated by recent FASB, IASB, and CFA Institute comments, we explore the predictive value of direct method cash flow disclosures. A primary stated purpose of the direct method is to better forecast future performance. To examine this purpose, we first document that direct method line items, such as cash received from customers, are not reliably estimable using income statements and either balance sheets or indirect method statements of cash flows. When these stimation (articulation) errors are included in cash flows and earnings forecasting models, forecasting performance significantly improves. In addition, employing a future ERC (FERC) methodology, we find evidence suggesting that market participants utilize direct method disclosures for their stated purpose: to better forecast future operating performance. After conducting several tests for self-selection concerns, we conclude that the direct method is valuable to investors when forecasting future cash flows and earnings.

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