Accruals, cash flows and earnings in european privately held firms

2013 ◽

pp. 133

Author(s):

Borja Amor Tapia ◽

María Teresa Tascón Fernández

Keyword(s):

Cash Flow ◽

Cash Flows ◽

Previous Literature ◽

Private Firms ◽

Publicly Traded ◽

Private Companies ◽

Public Firms ◽

Publicly Traded Firms ◽

Privately Held Firms ◽

Privately Held

Este trabajo examina las propiedades de los ajustes al devengo, los flujos de caja y los resultados en las empresas europeas no cotizadas. A partir de varias hipótesis sobre la persistencia de losresultados y sus componentes, encontramos que las empresas no cotizadas parecen comportarse de forma diferente a la evidencia encontrada previamente sobre las empresas cotizadas. Lasdiferencias son significativas cuando los ajustes al devengo son extremos, dado que la persistencia del ROA y de los flujos de caja siguen patrones de comportamiento distintos a los encontrados en las empresas estadounidenses cotizadas. Pero contrariamente a nuestrashipótesis, las diferencias en la persistencia no son significativas cuando las empresas no cotizadas publican resultados positivos frente a resultados negativos. This paper examines the properties of accruals, cash flows and earnings in European privately held firms. We start from several hypotheses about the persistence of earnings and its components, finding that private companies seem to behave in a different manner than the publicly traded firms tested in previous literature. As hypothesized, differences are significant when accruals are extreme, though in European private firms, persistence of ROA relative to cash flow follows a different pattern than in US public firms. But contrary to our expectations, differences in persistence are not significant when companies report positive versus negative earnings.

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Information asymmetry in CSR reporting: publicly-traded versus privately-held firms

Sustainability Accounting Management and Policy Journal ◽

10.1108/sampj-12-2018-0333 ◽

2020 ◽

Vol 11 (1) ◽

pp. 207-232 ◽

Cited By ~ 1

Author(s):

L. Emily Hickman

Keyword(s):

Information Asymmetry ◽

Global Reporting Initiative ◽

Publicly Traded ◽

Private Companies ◽

Content Type ◽

Public Firms ◽

Csr Reporting ◽

Reporting Decisions ◽

Privately Held Firms ◽

Privately Held

Purpose This paper aims to investigate the motivations behind the publication of corporate social responsibility (CSR) reports, and particularly the effect of information asymmetry between firms and their owners. Design/methodology/approach A natural experiment contrasting the CSR reporting of private vs public firms is used to test whether the degree of information asymmetry is a significant factor in the decision to publish CSR reports. Using a hand-collected sample of the 239 largest US private companies matched with publicly-traded firms, the effect of these inherently different information environments on CSR reporting is tested through logistic regression. Factors suggested by stakeholder and legitimacy theories are tested for their differential impact on private vs public firms’ decisions to publish a CSR report. Findings Results indicate that private firms are less likely to publish a CSR report than similar public firms. Public firms also follow Global Reporting Initiative guidelines more frequently, consistent with signaling report quality to dispersed investors. A subsample of private companies facing greater information asymmetry is found to be similar to public firms in their reporting behavior, reinforcing the link between information asymmetry and CSR disclosure. Further analysis suggests that non-owner stakeholders play an important role in private companies’ CSR reporting decisions. Practical implications In addition to accounting and governance scholars, the findings should interest private firm managers preparing for an initial public offering (IPO), as the evidence suggests that CSR reporting is used to communicate information to dispersed investors. The insight into reporting motivations should be useful to accountants engaged in CSR consultation and assurance. Social implications With the growing attention paid to the CSR performance of firms, demonstrated by the growth in socially responsible investing, the study provides evidence that effective communication of CSR information to investors may play a key role in CSR-engaged firms’ disclosure strategies. Originality/value To the best of the author’s knowledge, this study is the first to analyze the CSR reporting decisions of a large sample of publicly-traded and privately-held firms. The results add to our understanding of what motivates firms to publish CSR reports, highlighting the importance of information asymmetry between the firm and its owners.

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Does the CEO effect on performance differ in private versus public firms?

Strategic Organization ◽

10.1177/14761270211018183 ◽

2021 ◽

pp. 147612702110181

Author(s):

Timothy J. Quigley ◽

Francesco Chirico ◽

Massimo Baù

Keyword(s):

Firm Performance ◽

Private Firm ◽

Matched Pair ◽

Future Research ◽

Publicly Traded ◽

Public Firms ◽

Firm Profitability ◽

Public Firm ◽

Privately Held Firms ◽

Privately Held

Scholars have long debated the effect CEOs have on firm performance, including a focus on how their effect shifts across industries, national settings, and time. Unexplored, however, is the possibility that the CEO effect might differ in publicly traded versus privately held firms. Drawing on a unique longitudinal sample of both publicly traded and large, privately held Swedish firms from 1997 to 2013, we replicate and build upon prior CEO effects studies and find that private-firm CEOs have a greater effect on firm performance, for good or for ill, than do their public firm counterparts. Our results are strengthened after controlling for industry, firm profitability, and size in a matched-pair sample. We discuss the implications and potential future research stemming from these findings.

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Analyzing the figures of consolidated statement of cash flows of the world's biggest publicly traded oil and gas corporations

Economic Analysis Theory and Practice ◽

10.24891/ea.19.6.1101 ◽

2020 ◽

Vol 19 (6) ◽

pp. 1101-1120

Author(s):

O.V. Shimko

Keyword(s):

Public Sector ◽

Cash Flow ◽

Oil And Gas ◽

Cash Flows ◽

Annual Reports ◽

Capital Expenditures ◽

Publicly Traded ◽

The Public ◽

Statement Of Cash Flows ◽

Oil And Gas Companies

Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.

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Do Publicly Traded Firms Price Differently from Private Firms?

SSRN Electronic Journal ◽

10.2139/ssrn.269492 ◽

2001 ◽

Cited By ~ 1

Author(s):

Ernesto Schargrodsky

Keyword(s):

Private Firms ◽

Publicly Traded ◽

Publicly Traded Firms

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Valuation And Market Timing In Private M&A Transactions

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v1i8.3032 ◽

2011 ◽

Vol 1 (8) ◽

Author(s):

Ted Azarmi ◽

Florian Eisele ◽

Christine Haecker

Keyword(s):

Market Timing ◽

Point Of View ◽

Font Size ◽

Private Companies ◽

Maximum Price ◽

Business Conditions ◽

Privately Held Firms ◽

Time Required ◽

The Right ◽

Privately Held

The objective of this case is to teach and initiate a classroom discussion about the optimal market timing for the sale of a mid-cap privately held firm.  The discussion is facilitated by a real world case example that focuses on the sale of a Little Rock, AK based plastic injection molding company with approximately $20 million in revenues. Theoretical and practical issues central to receiving maximum price in relation to selling at the right time are addressed.  Considered are the desired time to close the deal from the owner’s point of view, the time required for successful completion of the sale process, business conditions in this industry, firm-specific business conditions, and ability of agents to time this market.   This case also discusses various reasons for the sale of private companies and the effect of respective sale motives on the placement of these firms.  Principally, the retirement decision by the owners of small privately held firms as the most frequent reason for the sale of these companies is explored.

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Volatility and Dispersion in Business Growth Rates: Publicly Traded versus Privately Held Firms

10.3386/w12354 ◽

2006 ◽

Cited By ~ 106

Author(s):

Steven Davis ◽

John Haltiwanger ◽

Ron Jarmin ◽

Javier Miranda

Keyword(s):

Growth Rates ◽

Business Growth ◽

Publicly Traded ◽

Privately Held Firms ◽

Privately Held

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Capital structure: Empirical evidences of public and non-public firms in Brazil

Corporate Ownership and Control ◽

10.22495/cocv12i3c2p2 ◽

2015 ◽

Vol 12 (3) ◽

pp. 223-232

Author(s):

Gabriel Hideo Sakai de Macedo ◽

Joelson Oliveira Sampaio ◽

Eduardo Flores ◽

Pedro Luiz Aprigio

Keyword(s):

Capital Structure ◽

Cash Flow ◽

Stock Exchange ◽

Credit Market ◽

Convertible Debt ◽

Short Term ◽

Private Companies ◽

Public Companies ◽

Public Firms

This study seek to contribute to the literature through research focused on companies listed and not listed on the stock exchange. A survey was used to identify the capital structure of Brazilian companies and relate the results to the Brazilian credit market. The results indicate that most of the investigated companies prefer not to issue convertible debt, as well as the share of firms issuing common shares was small. It was found that firms do not have preference between long-term and short-term debt. Finally, it was also noted that private companies have great concern about the volatility of earnings and cash flow. The differential of this research was to analyze the practices adopted by both public companies and privately held

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