scholarly journals Does Accounting Conservatism Mitigate the Operating Cash Flows Downside Risk?

2019 ◽  
pp. 472-483
Author(s):  
Amneh Hamad ◽  
Mohammad AL-Momani ◽  
Hamzah Al-Mawali
Keyword(s):  
Stock Exchange ◽  
Cash Holdings ◽  
Downside Risk ◽  
Cash Flows ◽  
Accounting Conservatism ◽  
Good News ◽  
Composite Measure ◽  
Principle Components Analysis ◽  
Operating Cash Flows ◽  
Total Accrual

The aim of this study is to investigate whether the two types of accounting conservatism (conditional and unconditional) mitigate the risk of falling operating cash flows in the presence of cash holdings of Jordanian companies for the period from (2005–2014) for a sample of (160) companies listed in Amman Stock Exchange (ASE). By using the principle components analysis method in the SPSS system to generate a composite measure for the measurement of the conditional conservatism (CC_CM) consisting of three measures: negative accruals (CC_NACC), current accruals to total accruals (CC_CACC), and accounting conservatism to the good news (CC_ACGN). As well as to generate another composite measure for the measurement of the unconditional conservatism (UC_CM) consisting of three measures: total accrual (UC_TACC), book to market (UC_BTM) ratio, and skewness (UC_Skew). In order to measure the downside risk of operating cash flows, we used the root lower partial moment of operating cash flow (RLPM_OCF). We find that two types of accounting conservatism are significantly positively effect on cash holdings. In addition, we conclude that there is a significantly negatively indirect effect for accounting conservatism on downside risk of operating cash flows in Jordanian companies that have cash holdings. It means that the increasing of the accounting conservatism leads to the increasing of cash holdings, which leads to mitigate the operating cash flows downside risk.

scholarly journals PENGARUH OPERATING CAPACITY, SALES GROWTH DAN ARUS KAS OPERASI TERHADAP FINANCIAL DISTRESS

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Annisa Livia Ramadhani ◽  
Khairun Nisa
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Financial Distress ◽  
Agricultural Sector ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cash Flows ◽  
Sales Growth ◽  
Operating Capacity ◽  
Operating Cash Flows

This study aims to determine how the influence of operating capacity, sales growth and operating cash flows on financial distress. The population in this study israll agricultural sector companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. The sampling technique in this study used purposive sampling which produced 8 samples in a period of 5 years, namely as many as 40 units of data samples. The analytical method used is logistic �regression analysis which is processed. using SPSS Version 25. Based on the results of this study, it was found that simultaneous operating capacity, sales growth and operating cash flows influence the occurrence of financial distress. Then partially, operating capacity and sales growth have no effect on the occurrence of financial distress, while operating cash flows have a positive and significant effect on the occurrence of financial distress.�Keyword : Financial Distress, Operating capacity, Sales growth, Operation cash flow.

scholarly journals PENGARUH ARUS KAS KEGIATAN OPERASI, SIKLUS OPERASI, UKURAN PERUSAHAAN DAN TINGKAT HUTANG TERHADAP PERSISTENSI LABA (STUDI EMPIRIS PADA PERUSAHAAN JASA SUB SEKTOR KONSTRUKSI DAN BANGUNAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2016)

2019 ◽  
Vol 3 (1) ◽  
pp. 45-54
Author(s):  
Varadika Sarah ◽  
Ahmad Jibrail ◽  
Sudrajat Martadinata
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cash Flows ◽  
Earnings Persistence ◽  
Building Sector ◽  
Operating Cycle ◽  
Operating Cash Flows ◽  
Operating Cash Flow

Earnings Persistence is earning can reflect the earnimg priod next. In fact there are still companies that do not guarantee a persistent of earning. This study wished to examine ehe effect of operating cash flows, operating cycle, firm size, and the lever of debt both individually and simultaneously to earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016. The sampling technique using purposive sampling so than 9 sample companies were obtained. Data were analized using panel data with multiple regression then tested with the help of STATA 11 softwere.The result of this study are: operating cash flow, operating cycle, firm size there is not significant effect on earning persistence. While the level of debt has significant effect on earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016

scholarly journals PENGARUH LABA AKUNTANSI, ARUS KAS OPERASI, ARUS KAS INVESTASI, ARUS KAS PENDANAAN, DAN UKURAN PERUSAHAAN TERHADAP RETURN SAHAM

2021 ◽  
Vol 16 (1) ◽  
pp. 1
Author(s):  
Meta Nursita
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Cash Flows ◽  
Study Data ◽  
Company Size ◽  
Test Model ◽  
Operating Cash Flows ◽  
The Impact

This study aimed to examine the impact of accounting profit, operating cash flows, investment cash flows, financing cash flows and company size to stock returns on manufacturing firms sector for consumption by the corporate listed and registered under the Indonesia Stock Exchange within 2014 - 2016. This study employed Purposive Sampling method with a total of 39 companies taken as the sample in the present study. Data analysis process followed the following steps; descriptive statistical test, multicollinearity test, model fit test, regression model feasibility test, and hypothesis test. Statistical method used is panel data regression analysis. The result showed that accounting profit had partially significant impact on stock return; operating cash flows no had significant impact on stocks return; investment cash flows, and financing cash flows had no significant impact on stock return and company size had significant impact on stocks return. in addition, simultaneously, the results showed that the four aspects examined had statistically significant impact on stock return.

scholarly journals Persistence of earnings and prediction of future cash flows: the role of timely recognition of bad news

2016 ◽  
Vol 17 (4) ◽  
pp. 353-360
Author(s):  
Gholamreza Kordestani ◽  
Maryam Taqiporian ◽  
Vahid Biglari ◽  
Vahid Minaei
Keyword(s):  
Stock Exchange ◽  
Cash Flows ◽  
Bad News ◽  
Good News ◽  
Type Model ◽  
Panel Type ◽  
Future Cash Flows

Timely recognition of losses and expenses compared to revenues and increased values precipitates future expenses to match with current revenues. Thus, timely recognition of losses acts to reduce the persistence of earnings. However, it is expected that a more timely recognition of negative cash flows, as bad news, increase the power of earnings for predicting future cash flows. This study investigates the effects of the timely recognition of bad news (loss) versus the good news on the decrease of the persistence of earnings, and the effect of negative cash flows on forecasting future cash flows. In this study, two pooling type models and a panel type model have been used to estimate the persistence of earnings and cash flows. Seventy eight firms that were listed in the Tehran Stock Exchange during the period 2003–2010 were duly reviewed. The results of this research proved that the timely recognition of loss does not affect the persistence and the power of earnings for the purpose of forecasting future cash flows. The findings imply that conservatism does not distort persistence of earnings.

Cash and Financial Constraints: An Empirical Analysis of Non-Financial Firms Listed in Indonesian Stock Exchange 2005-2014

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Sigit S. Wibowo ◽  
Stefany Lolyta
Keyword(s):  
Financial Constraints ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Cash Flows ◽  
Cash Holding ◽  
External Financing ◽  
Dividend Payment ◽  
Public Firms ◽  
Financial Firms ◽  
Strong Motivation

This study examines corporate motives to hold cash and its equivalents as forms of financing, by using non-financial public firms listed in Indonesian Stock Exchange (IDX) between 2005 and 2014. Three criteria are employed to distinguish constrained and non-constrained firms namely: KZ index, dividend payment, and firm size. Based on the results of PLS, this study finds that the amount of cash holding is increasing along with the increase of cash flows. This result is consistent for both firm categories based on the previous criteria. However, based on the 2SLS method, cash flow does not affect the cash holdings of the firms with financial constraints. The result of this research shows that firms with financial constraints have strong motivation to hold cash due to lack of access to external financing.

scholarly journals EFFECTS OF ASSET STRUCTURE, OPERATING CASH FLOW, AND PROFITABILITY ON DEBT POLICY IN PROPERTY AND REAL ESTATE COMPANIES ON THE INDONESIA STOCK EXCHANGE PERIOD 2013-2017

2018 ◽  
Vol 7 (01) ◽  
pp. 33
Author(s):  
Meilianta Br Peranginangin ◽  
Cathrin Mutiara Saragih ◽  
Hantono Hantono ◽  
Namira Ufrida Rahmi ◽  
Siti Tiffany Guci
Keyword(s):  
Linear Regression ◽  
Real Estate ◽  
Multiple Linear Regression ◽  
Cash Flow ◽  
Analytical Method ◽  
Stock Exchange ◽  
Cash Flows ◽  
Operating Cash Flows ◽  
Operating Cash Flow ◽  
Debt Policy

This study aims to determine the effect of asset structure, operating cash flow, and profitability on debt policy in property and real estate companies in the Indonesia Stock Exchange in 2013-2017. The analytical method used is multiple linear regression, F test and t test. The results of the analysis of this study indicate that the structure of assets, operating cash flows, and profitability have a simultaneous effect on debt policy. Meanwhile the analysis partially shows that the asset structure, operating cash flows, and profitability do not partially affect debt policy.

scholarly journals PENGARUH ECONOMIC VALUE ADDED, MARKET VALUE ADDED, RESIDUAL INCOME, EARNINGS DAN ARUS KAS OPERASI TERHADAP RETURN SAHAM (Studi Empiris pada perusahaan LQ-45)

Media Ekonomi ◽  
2016 ◽  
Vol 16 (1) ◽  
pp. 176
Author(s):  
Hari Cahyadi ◽  
Akhmad Darmawan
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Cash Flows ◽  
Residual Income ◽  
Operating Cash Flows ◽  
Operating Cash Flow ◽  
Market Value Added

This study to get empirical evidence that the EVA, MVA, Residual income, Earnings and operating cash flow affect the return earned by shareholders, either partially or simultaneously. The sampling method used was purposive sampling, with the criteria of the company that is always inclouded in the LQ-45 index listed in the Indonesia Stock Exchange (BEI) during the observation period of 2011-2014. Companies used in the sample have a positifve data. The analytical method used was multiple linear regression test. The result of this study concluded that the MVA, residual income and operating cash flows simultaneously affected the return earned by shareholders. MVA partially had no effect on returns received by shareholders. Residual income partially had an effect on returns received by shareholders. Operating cash flow partially had an influence on return received by shareholders. The second and the fifth hypothesis in this study could not be tested because EVA variables and earnings experienced multi co linearity, thus it was excluded from the study. Keywords : EVA, MVA, Residual income, Earnings, operating cash flows and stock returns

scholarly journals Accounting Conservatism in Stock Price Downfall Risk in "Tehran Stock Exchange"

2015 ◽  
Vol 16 (SE) ◽  
pp. 495-502
Author(s):  
Sahar Taremi ◽  
Bamdad Partovi
Keyword(s):  
Financial Reporting ◽  
Significant Relationship ◽  
Stock Price ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Accounting Conservatism ◽  
Good News ◽  
Stock Value ◽  
Research Company

As the economic departments' managers tend to report good news, they simultaneously try to conceal bad news. Conservatism procedures not only resist against these tendencies of management, but also they decrease the investment risk in stock. In this research, the relationship between accounting conservatism and the risk related to downfall of stock value has been studied using historical data about 29 car and pieces companies accepted in Tehran Stock Exchange during the years 2010- 2012. The results obtained from performing the logistic regression model show that there is a negative and significant relationship between the risk of stock value decline and the level of conservatism for case-study statistic sample companies. In other words, during the research period, those companies in which the more conservative procedures have been applied in financial reporting, they have less encountered the risk of stock value decline. In the present research, company size was involved as a controlling variable in hypothesis test pattern that a significant relationship wasn't observed between this variable and the research's dependent variable.

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