THE RELATIONSHIPS OF CASH FLOWS: EVIDENCE FROM LATVIAN COMPANIES

The paper deals with the subject of relationships among the different cash flows, as well as earnings, of a company. The aim of the paper is to establish the direction and strength of mutual relationships between different cash flow measures, as well as with earnings, and to provide recommendations for the prediction of future cash flows and earnings. The methods of the research include content analysis, the calculation of relative indicators, average and median measures, as well as regression and correlation analysis. There is an empirical study of the data of 52 Latvian companies, which has resulted in testing the hypotheses put forward and substantiated in the paper. A typical Latvian enterprise relies on the operating cash flow to create the investing cash flow and does not need to rely on the external sources of financing. The author concludes that investment does pay, and, based on the assessment of results of the developed model, the investing cash flow should be used in cash flow prediction, while it should not be used in earnings prediction. The increase in financing cash flow causes a company investments to increase.

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Kemampuan Laba dan Arus Kas Operasi dalam Memprediksi Laba dan Arus Kas Masa Depan

E-Jurnal Akuntansi ◽

10.24843/eja.2018.v23.i01.p04 ◽

2018 ◽

pp. 80

Author(s):

Frans AP Dromexs Lumbantoruan ◽

I Gusti Ngurah Agung Suaryana

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Flow Property ◽

Multiple Linear Regression Analysis ◽

Cash Flows ◽

Future Earnings ◽

Analysis Technique ◽

Operating Cash Flow ◽

Future Cash Flows

This study aims to determine the ability of earnings and operating cash flows in predicting earnings and future cash flows. This research was conducted on property and real estate companies listed on the Indonesia Stock Exchange. The samples used by 20 companies with 40 observations. The sampling was done by nonprobability samplingmethod with purposive samplingtechnique. The analysis technique used is multiple linear regression analysis. Based on the result of the analysis, earnings influences in predicting future earnings. Likewise, earnings and operating cash flow have an effect in predicting future cash flows. However, operating cash flow is not influential in predicting future earnings. Keywords: profitability, cash flow, property

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The usefulness of operating cash flow information: Does format matter?

Corporate Ownership and Control ◽

10.22495/cocv10i1art4 ◽

2012 ◽

Vol 10 (1) ◽

pp. 44-52 ◽

Cited By ~ 2

Author(s):

Shadi Farshadfar

Keyword(s):

Cash Flow ◽

Indirect Method ◽

Direct Method ◽

Cash Flows ◽

Indirect Methods ◽

Flow Information ◽

Operating Cash Flow ◽

Future Cash Flows ◽

Direct And Indirect Methods ◽

Level Analysis

This study investigates whether the direct method of presenting cash flows from operations is superior to the indirect method in its ability to forecast future cash flows. It also considers the effect of industry characteristics on the relative usefulness of direct and indirect methods of cash flow presentation. The study, which uses a sample of Australian firms, finds that both the direct and indirect methods improve the forecast of future cash flows. However, the indirect method of reporting cash flows from operations is more relevant than the direct method in predicting future cash flows. Evidence from the industry-level analysis overall reinforces the main results.

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The Incremental Usefulness Of Income Tax Allocations In Predicting One-Year-Ahead Future Cash Flows

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v23i4.1378 ◽

2011 ◽

Vol 23 (4) ◽

Author(s):

Benjamin P. Foster ◽

Terry J. Ward

Keyword(s):

Cash Flow ◽

Income Tax ◽

Financial Statements ◽

Cash Flows ◽

Financial Accounting ◽

Font Size ◽

Long Time ◽

Operating Cash Flow ◽

One Year ◽

Future Cash Flows

<h2 style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in; mso-hyphenate: none; tab-stops: center 3.25in;">Interperiod income tax allocation has been a hotly debated financial accounting issue for a long time.  Critics of interperiod tax allocation frequently question the usefulness of the extra information, particularly considering the FASB’s decision usefulness approach stated in its Conceptual Framework.  This study extends the research of Cheung et al. (1997) and Krishnan and Largay (2000) by using the ability to predict future taxes paid and future cash flow as criteria to evaluate the usefulness of interperiod tax allocation. This study extends previous research by examining not only whether interperiod tax allocation included in financial statements is useful, but also by examining whether such information is incrementally useful beyond taxes paid. For predicting future taxes paid and operating cash flow, our analyses provides little evidence that interperiod tax allocation information included in financial statements adds incremental predictive value beyond taxes paid as reported on the cash flow statement.</h2>

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The Effect of Firm Size on Predictability Future Cash Flows Using Earnings and Operating Cash Flows

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v9i1.10795 ◽

2017 ◽

Vol 9 (1) ◽

pp. 90

Author(s):

Nasrollah Takhtaei ◽

Hassan Karimi

Keyword(s):

Cash Flow ◽

Firm Size ◽

Small Firms ◽

Stock Exchange ◽

Cash Flows ◽

Working Capital ◽

Operating Cash Flows ◽

Relative Ability ◽

Operating Cash Flow ◽

Future Cash Flows

The aim of this research is to investigate earnings relative ability, operating cash flow, and two traditional criteria of cash flow, that is, net earnings plus depreciation and operating working capital in predicting operating future cash flows. Further, the effect of firm size on the ability to predict these criteria is investigated in this research. The sample firms contain listed companies in Tehran Stock Exchange (TSE) over the period 2005-2009. The results show that net earnings relative to operating cash flows and its traditional criteria have greater ability to predict future cash flows in small firms whereas operating cash flows compared with other criteria are better predictors in big firms. Results indicate thatthe predictability of all models increases considerably when firm size increases.

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Analisis Kemampuan Informasi Laba dan Arus Kas dalam Memprediksi Arus Kas Masa Depan

Berkala Akuntansi dan Keuangan Indonesia ◽

10.20473/baki.v5i2.21400 ◽

2020 ◽

Vol 5 (2) ◽

pp. 132

Author(s):

Miranti Pangestu

Keyword(s):

Cash Flow ◽

Sampling Method ◽

Stock Exchange ◽

Cash Flows ◽

Net Income ◽

Earnings Information ◽

Service Companies ◽

Flow Information ◽

Operating Cash Flow ◽

Future Cash Flows

The purpose of this study is to examine whether earnings information or cash flow information can predict future cash flows in service companies in Indonesia. The sample determined in this study, using the purposive sampling method, produced 145 companies listed on the Indonesian Stock Exchange in 2015-2017, with a total of 435 observations. In this study, multiple regression analysis techniques are used. The results shown by the t-test are partially significant net income. In this case, net income is a predictor of future cash flows. Whereas cash flow information namely operating cash flow, investing cash flow, and funding cash flow do not affect the future cash flow

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The Effect of Accrual Quality and Operating Cash Flows on Future Cash Flows in the Basic Industry and Chemical Sectors

Asian Journal of Advanced Research and Reports ◽

10.9734/ajarr/2021/v15i330380 ◽

2021 ◽

pp. 46-59

Author(s):

Amanda Shofia ◽

Wiwik Utami

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Cash Flows ◽

Accrual Quality ◽

Basic Industry ◽

Operating Cash Flows ◽

Operating Cash Flow ◽

Future Cash Flows ◽

Positive Effect

This study aims to analyze the effect of accrual quality and operating cash flow on future cash flows. Accrual quality in this study is measured by the accruals-working capital approach, referring to Dechow and Dichev [1] and Francis et al. [2], cash flow is measured by the ratio of operating cash flows to assets. The population of this research is the Basic Industry and Chemical sector companies listed on the Indonesia Stock Exchange for the period 2014-2018. The samples were determined using purposive sampling which resulted in 144 firms year came from 32 companies. The results of this study showed that there is a significant positive effect the accrual quality and operating cash flow on future cash flows. Management should manage the company's operating cash flow efficiently, and simultaneously improve the quality of the company's accruals which will be a positive signal for investors creditors.

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Study on Companies from the Energy Sector from the Perspective of Performance through the Operating Cash Flow

Energies ◽

10.3390/en14123667 ◽

2021 ◽

Vol 14 (12) ◽

pp. 3667

Author(s):

Claudia Diana Sabău-Popa ◽

Luminița Rus ◽

Dana Simona Gherai ◽

Codruța Mare ◽

Ioan Gheorghe Țara

Keyword(s):

Labor Productivity ◽

Cash Flow ◽

Stock Exchange ◽

Average Duration ◽

Significant Negative Correlation ◽

Cash Flows ◽

Energy Sector ◽

Or Management ◽

Operating Cash Flow ◽

The Impact

In this paper we analyzed the link between companies’ performance, in terms of cash and income, and the labor productivity or management rates, in case of the companies from the energy sector listed on the Bucharest Stock Exchange. We focused on the energy sector because of the impact that its expansion has on the evolution of economies around the world and because of its dynamics in the sense of gradually shifting to the use of energy from renewable sources. We have used panel regression models to analyze the operating cash flow and the profitability rates and the determination of a causal or dependency relationship with labor productivity or management rates. The results of this study show a significant negative correlation between operating cash flows and the average duration of stock rotation, and no correlation between productivity and the operating cash flow. Instead, the average duration of stock turnover does not at all influence the profitability rates, and productivity is always significant for the return on assets, ie forthe return on equitywith a positive coefficient, as expected. The gap between the average duration of payment of suppliers and the average duration of receivables does not significantly influence neither the cash flow nor the rates of return.

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PENGARUH PERUBAHAN KOMPONEN LAPORAN ARUS KAS, PERUBAHAN LABA KOTOR, DAN PERUBAHAN SIZE PERUSAHAAN TERHADAP EXPECTED RETURN SAHAM

Jurnal Riset Akuntansi dan Keuangan ◽

10.21460/jrak.2011.71.32 ◽

2011 ◽

Vol 7 (1) ◽

pp. 39

Author(s):

Serly C ◽

Astuti Yuli Setyani

Keyword(s):

Data Analysis ◽

Linear Regression ◽

Cash Flow ◽

Stock Exchange ◽

Cash Flows ◽

Gross Margin ◽

Expected Return ◽

Flow Changes ◽

Operating Cash Flow ◽

Observation Period

The purpose of this study was to examine the effect of changes in thecomponents of cash flows (operating cash flow changes, investment cashflow changes , cash flow funding changes), changes in gross profit,and change the size of the company toward expected return stock ofmanufacturing companies which go public in Indonesia Stock Exchange. The number of companies studied as many as 84 companies listed in Indonesia Stock Exchange with the observation period from 2004 to 2008. The technique used in the data analysis is the technique of multiple linear regression. Results of the study showed that only cash flow operations changes ,investment cash flow changes and gross margin changes that showed significantly influence against expected return stockKata kunci: expected return, size, arus kas operasi, arus kas investasi, laba kotor

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ARUS KAS, CASH HOLDING, KENDALA PENDANAAN DAN INVESTASI DI INDONESIA

AdBispreneur ◽

10.24198/adbispreneur.v3i2.19003 ◽

2019 ◽

Vol 3 (2) ◽

pp. 169

Author(s):

Risal Rinofah

Keyword(s):

Cash Flow ◽

Financial Constraints ◽

Average Rate ◽

Cash Flows ◽

Cash Holding ◽

Investment Level ◽

Show Evidence ◽

The Impact ◽

A Company ◽

Positive Effect

ABSTRACTThis study aims to detect Cash Flow, Cash Holding and Financial Constraints effect on investment decisions of companies in Indonesia. Some of the previous studies outside Indonesia show evidence of the impact of cash flows and financial constraints on it’s investment level.Using Multiple Regression and Logistic Regression model, on five years data observation shows that cash flow and cash holding have a positive effect on investment level. Interaction test shows the effect of cash flow on investment in financially constrained different from financially unconstrained companies. In other words, the average rate of investment changes caused by the level of cash flow is the same for both companies. While the effect of cash holding on investment, no different in the company that financially constraint and financially unconstraint company.The contribution of this research is to provide insight to the parties related to the importance of cash flow and cash holding to the investment of a company. Based on the results it can be concluded that companies that have cash flow and high cash holding have greater investment opportunities, especially in companies that have problems in finding sources of funding. ABSTRAKPenelitian ini bertujuan untuk mendeteksi pengaruh Arus Kas, Cash Holding dan Kendala Finansial terhadap keputusan investasi perusahaan di Indonesia. Beberapa penelitian sebelumnya di luar Indonesia menunjukkan bukti ada pengaruh Arus Kas dan Kendala Keuangan pada tingkat investasi.Dengan menggunakan model Regresi Berganda dan Regresi Logistik, pada pengamatan data selama lima tahun menunjukkan bahwa Arus Kas dan Cash Holding berpengaruh positif terhadap tingkat investasi. Uji interaksi menunjukkan pengaruh Arus Kas terhadap investasi pada perusahaan yang mengalami kendala pendanaan berbeda dengan perusahaan yang tidak mengalami kendala pendanaan. Dengan kata lain, tingkat rata-rata perubahan investasi yang disebabkan oleh tingkat arus kas adalah sama untuk kedua perusahaan. Sedangkan pengaruh Cash Holding terhadap investasi, tidak berbeda pada perusahaan yang mengalami kendala pendanaan maupun tidak.Kontribusi dari penelitian ini adalah untuk memberikan wawasan kepada pihak-pihak yang terkait dengan pentingnya arus kas dan Cash Holding untuk investasi perusahaan. Berdasarkan hasil tersebut dapat disimpulkan bahwa perusahaan yang memiliki Arus Kas dan Cash Holding yang tinggi memiliki peluang investasi yang lebih besar, terutama pada perusahaan yang memiliki masalah dalam mencari sumber pendanaan.

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The Influence of Future Cash Flow Predictions on Profits in Companies Listed on the Indonesia Stock Exchange

International Journal of Seocology ◽

10.29040/seocology.v2i1.19 ◽

2021 ◽

pp. 026-033

Author(s):

Titik Purwanti

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Cash Flows ◽

Net Income ◽

Purposive Sampling ◽

Future Cash Flow ◽

Operating Profit ◽

Food And Beverage ◽

Future Cash Flows

This research was conducted to determine the effect of future cash flow predictions on profits (gross profit, operating profit, and net income) in food and beverage companies listed on the Indonesia Stock Exchange. The method used in this research used purposive sampling with a population of food and beverage companies listed on the Indonesia Stock Exchange for the period 2016-2018. The samples in this research were 19 companies. The results obtained indicate that the operating profit variable has a partial effect on future cash flows, while the net income variable and the gross profit variable do not partially affect future cash flows. Simultaneously, gross profit, operating profit and net income have an effect on future cash flows.

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