scholarly journals Free Cash Flow, Growth Opportunities, And Dividends: Does Cross-Listing Of Shares Matter?

2014 ◽  
Vol 30 (2) ◽  
pp. 587 ◽  
Author(s):  
Zijian Cheng ◽  
Charles P. Cullinan ◽  
Junrui Zhang
Keyword(s):  
Cash Flow ◽  
Listed Companies ◽  
Shareholder Wealth ◽  
Free Cash Flow ◽  
Limited Evidence ◽  
Growth Opportunities ◽  
Dividend Policies ◽  
Cross Listing ◽  
Chinese Listed Companies ◽  
The Relationship

<p>Corporate dividend policy should strike a balance between paying cash to shareholders when there are excess resources and retaining sufficient resources in the company to fund worthwhile projects. Using excess resources to pay dividends can help to avoid overinvestment by the company in inappropriate projects and/or other potential misuse of funds by managers for their own benefit. However, companies also need to avoid paying too much in dividends to ensure that adequate resources are available within the company to fund projects that could increase shareholder wealth (i.e., to avoid underinvestment). Cross-listing of company shares can improve governance and oversight, which may make the dividend policies of cross-listed companies more likely to avoid both over and underinvestment.</p> <p>Using a sample of Chinese listed companies from 2003 to 2011, we find that cross-listed companies pay higher dividends than non-cross-listed companies when there are excess resources (measured by free cash flow), thereby reducing the potential for overinvestment/misuse of the resources by cross-listed companies. We also find that the dividends of cross-listed companies are lower than those of non-cross-listed companies when there are greater growth opportunities (measure by the market-to-book ratio), reflecting the reduced potential for underinvestment by cross-listed companies. We find more limited evidence that cross-listings may influence the relationship between dividend volatility and free cash flow and growth opportunities. Overall, our results suggest that companies cross-listing their shares have dividend policies that are more responsive than those of non-cross-listed companies to potential shareholder concerns about over and underinvestment.</p>

scholarly journals Kebijakan Dividen dari Perspektive Agency Cost Model (Studi Kasus Perusahaan yang Terdaftar di Bursa Efek Indonesia periode 2011-2013)

2016 ◽  
Vol 5 (1) ◽  
pp. 73
Author(s):  
Akhmad Hitten
Keyword(s):  
Cash Flow ◽  
Ownership Structure ◽  
Cost Model ◽  
Investment Decisions ◽  
Listed Companies ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Dividend Policies ◽  
Main Model ◽  
Observation Period

The paper examines the influence of agency theory on dividend policies with free cash flow,maturity, capital structure, and ownership dividend variables. The sample used in this research isIndonesian listed companies with observation period from 2010 to 2013, and the data collectiontechnique used is data pooling or merging data. The data is analyzed with multiple linearregression analysis in SPSS program. The result of this study indicates that free cash flow,maturity, and ownership structure do not influence devidend policies, however capital structureinfluences dividend policies in Indonesian listed companies. The research also implies thatagency cost theory, as the main model of relevance dividend preposition, cannot explaindividend policies in Indonesian Companies. The investors cannot rely solely on dividend policiesin term of investment decisions in the future. 

The Study on Relationship between Financing Constraints and Investment-Cash Flow Sensitivity in Chinese Listed Companies

2011 ◽  
Vol 268-270 ◽  
pp. 1844-1849
Author(s):  
Chang Chun Li
Keyword(s):  
Cash Flow ◽  
Logistic Regression Model ◽  
Listed Companies ◽  
Financial Data ◽  
Financing Constraints ◽  
External Financing ◽  
Flow Sensitivity ◽  
Chinese Listed Companies ◽  
Cash Flow Sensitivity ◽  
The Relationship

This paper uses the financial data of all Chinese listed companies to construct two indexes that reflect the degree of external financing constraints faced by firms, using logistic regression model and multiple discriminate analyses respectively. Second, the author examines the relationship between financing constraints and the investment-cash flow sensitivity using OLS regressions. This paper provides evidence that the relationship between financing constraints and investment-cash flow sensitivity is monotonic, which is consistent with the findings of FHP(1988).

scholarly journals FAKTOR-FAKTOR PENENTU STRUKTUR MODAL PADA PERUSAHAAN PROPERTY, REAL ESTATE, AND BUILDING CONSTRUCTION YANG TERDAFTAR DI BURSA EFEK INDONESIA

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Pascasarjana FEB UNTAN Magister Manajemen
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Cash Flow ◽  
Free Cash Flow ◽  
Building Construction ◽  
Company Size ◽  
Growth Opportunities ◽  
Tax Shields ◽  
Relationship Of ◽  
The Relationship

This research aims to analyze how much influence the profitability, tangibility, growth opportunities, non-debt tax shields, free cash flow on capital structure with company size as a moderating variable. Data analysis model used in this research is descriptive statistical analysis and inference. The population in this research are property, real estate and building construction companies listed on the Indonesia Stock Exchange during the period of 2013-2017. The samples were selected by using purposive sampling of 45 companies which sample companies collected with the criteria of having financial reports in a row during the research period. The research results show that the variable of profitability, tangibility, free cash flow had a negative and significant effect on capital structure. While the growth opportunity variable has a positive and significant effect on capital structure. Non-debt tax shields have no effect on capital structure. In addition, company size as a moderating variable has a significant effect as moderation between the relationship of tangibility to capital structure and growth opportunities to capital structure, but does not moderate the relationship of profitability to capital structure, non-debt tax shields to capital structure and free cash flow to capital structure.

scholarly journals Analysing the Impacts of Free Cash Flow, Agency Cost and Firm Performance in Public Listed Companies in Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 211-218
Author(s):  
Noraina Mazuin Sapuan ◽  
Norwazli Abdul Wahab ◽  
Muhammad Ashraf Fauzi ◽  
Aktom Omonov
Keyword(s):  
Firm Performance ◽  
Cash Flow ◽  
Negative Impact ◽  
Positive Impact ◽  
Listed Companies ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Asset Turnover ◽  
Free Cash Flow Hypothesis ◽  
The Relationship

This study intended to examine the relationship between free cash flow and agency costs towards firm performance based on the data from 350 public listed companies in Malaysia. The data was collected from year 2005 to 2015. There is a need to re-examine the free cash flow hypothesis and the agency theory based on Malaysian data as the results from previous studies shown a mix results.The findings shown free cash flow is significantly giving positive impact on firm performance. This result is contradict to free cash flow hypothesis, but it can occur due to, when the availability of investments opportunities that can be generated when firm more free cash flow that later able to increase firm performance. Meanwhile, total asset turnover has a positive impact on return on asset. However, the operating expenses ratio demonstrates that the operating expenses ratio has a negative impact on return on asset. The mix findings of agency cost are supported by previous studies.

scholarly journals The Relevance of Social Responsibility and Financial Performance of Listed Companies

2018 ◽  
Vol 8 (2) ◽  
pp. 40 ◽  
Author(s):  
Jingwen Mi ◽  
Shaoyan Jiang ◽  
Xiaohui Tao ◽  
Wanwan Hu
Keyword(s):  
Social Responsibility ◽  
Financial Performance ◽  
Economic Performance ◽  
Listed Companies ◽  
Growth Opportunities ◽  
Chinese Listed Companies ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

This paper uses the data of Chinese listed companies from 2014 to 2016 as a sample to discuss the relationship between corporate social responsibility and financial performance. At the same time, it analyzes the regulatory role of corporate scale and growth opportunities in the impact of social responsibility on economic performance. The study finds that there is a significant positive correlation between social responsibility and financial performance. The scale of the enterprise reverses the impact of social responsibility on financial performance, and growth opportunities do not regulate the impact of social responsibility on financial performance.

scholarly journals The Relationship between Non-audit Services and Auditor Independence: Evidence from Chinese Listed Companies

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Xiaobo Hao
Keyword(s):  
Rapid Development ◽  
Binary Logistic Regression ◽  
Listed Companies ◽  
Auditor Independence ◽  
Binary Logistic Regression Model ◽  
Western Countries ◽  
Chinese Listed Companies ◽  
Independent Variable ◽  
The Relationship ◽  
Non Audit Services

The rapid development of non-audit services (NAS) has jeopardized the independence of auditors, which has led many Western countries to enact regulations that restrict the provision of NAS. While in China, NAS have just emerged, and its development in China is far less mature than in Western countries. The purpose of this paper is to explore whether NAS in China have damaged auditor independence and whether Chinese regulators need to emulate Western countries and strongly limit the provision of NAS. In order to achieve this objective, 213 Chinese listed companies are selected in this study. The audit opinions issued by the auditors are used as substitute variables for auditor independence (dependent variables), and the ratio of non-audit service fees to the total of audit service fees and non-audit service fees as a substitute variable for the provision of NAS (independent variable), and meanwhile some suitable control variables are also selected. Analyse these data by building a binary logistic regression model. The results show that there is no evidence in China that NAS can undermine auditor independence and there is no need for China to enact regulations to prohibit the provision of NAS.

scholarly journals Free cash flow, investment inefficiency, and earnings management: evidence from manufacturing firms listed on the Indonesia Stock Exchange

2018 ◽  
Vol 15 (1) ◽  
pp. 299-310 ◽  
Author(s):  
Zaki Fakhroni ◽  
Imam Ghozali ◽  
Puji Harto ◽  
Etna Nur Afri Yuyetta
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Structural Equation ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Free Cash Flow ◽  
Path Model ◽  
Equation Modeling ◽  
Fixed Assets ◽  
The Relationship

The study aims to test investment inefficiency of fixed assets in mediating the relationship between free cash flow and earnings management and to test the controlling shareholders in moderating the relationship between free cash flow and fixed assets investment inefficiency. The research problem proposed in this study is whether the use of free cash flow for the investment inefficiency of fixed assets is able to ultimately improve the managerial performance. This research investigates new empirical evidence related to management earnings practices caused by free cash flow fixed assets investment inefficiency. The study was conducted on all the manufacturing firms listed on the Indonesia stock exchange from 2010 to 2015. The data used are secondary data in the form of the firms’ financial statements. Using purposive sampling, 314 units were analyzed from 69 manufacturing firms. The estimation of the path model was completed using Structural Equation Modeling (SEM) by WarpPLS program version 5.0. The results showed that free cash flow is positively related to earnings management. Fixed assets investment inefficiency is able to mediate the relationship between free cash flow and earnings management.

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