scholarly journals Free Cash Flow and Investment Efficiency of Listed Manufacturing Companies in Nigeria

2021 ◽  
Vol 4 (4) ◽  
pp. 77-88
Author(s):  
Aliyu Sulaiman Kantudu ◽  
Abubakar Sadiq Umar
Keyword(s):  
Cash Flow ◽  
Manufacturing Sector ◽  
Sampling Technique ◽  
Equity Capital ◽  
Free Cash Flow ◽  
Cost Of Debt ◽  
Investment Efficiency ◽  
Manufacturing Companies ◽  
The Relationship ◽  
Practical Implications

Purpose- This study aims to determine the relationship between free cash flow and investment efficiency of quoted manufacturing companies in Nigeria. Design- An accounting-based model developed by Richardson (2006) was employed to measure investment efficiency and free cash flow. The population of the study consist of all the listed manufacturing companies in Nigeria. Similarly, the purposive sampling technique was employed to arrive at forty-eight companies for 2008-2018. Findings- The results of the study confirm the agency theory of free cash flow. Hence, it established that there is a positive and robust relationship between free cash flow and overinvestment. Practical Implications- the findings of this study has practical implications to various group of users of financial information such as investors, policymakers and other stakeholders in the listed manufacturing sector in Nigeria. The study recommends that policymakers reduce the cost of debt, and likewise, managers should emphasize the facilitation of equity capital. Originality- To the best of the researcher's knowledge, this is the first study to examine the relationship between free cash flow and investment efficiency in Nigeria.

Model Pembiayaan Syariah Untuk Perkembangan Perkebunan Kopi di Kabupaten Bener Meriah

Liquidity ◽  
2018 ◽  
Vol 7 (1) ◽  
pp. 1-6
Author(s):  
Ali Muamar ◽  
Jafril Khalil ◽  
Manager Nasution ◽  
Arief Safari ◽  
Riawan Amin ◽  
...  
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Flow Ratio ◽  
Employee Welfare ◽  
Analysis Technique ◽  
Equity Ratio

This study was conducted to examine the effect of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (Parliament) partially on manufacturing companies listed on Indonesia Stock Exchange period 2011-2015. In addition, to test the feasibility of regression model, the influence of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (DPR) simultaneously at manufacturing company listed on Bursa Indonesia Securities period 2011-2015. The population in this study are 146 manufacturing companies that have been and still listed in Indonesia Stock Exchange period 2011-2013. The sampling technique used was purposive sampling and obtained sample of 42 companies. Data analysis technique used is by using multiple linear regression test. The results showed that Free Cash Flow Ratio, no significant effect on Divident Payout Ratio (DPR). Debt Equity Ratio (DER) has a negative and significant influence on Divident Payout Ratio (DPR), Institutional Ownership has a significant positive effect on Divident Payout Ratio (DPR), Employee Welfare and Price.

The effects of entrepreneurial orientation on the performance of the Malaysian manufacturing sector

2019 ◽  
Vol 11 (1) ◽  
pp. 30-45 ◽  
Author(s):  
Wee Loong Lee ◽  
Aik Lee Chong ◽  
Ramayah T.
Keyword(s):  
Transformational Leadership ◽  
Firm Performance ◽  
Environmental Changes ◽  
Manufacturing Sector ◽  
Manufacturing Companies ◽  
Content Type ◽  
Competitive Aggressiveness ◽  
Composition Factors ◽  
The Relationship ◽  
Practical Implications

PurposeThe purpose of this paper is to examine the effects of entrepreneur orientation (EO) on firm performance of the Malaysian manufacturing sector.Design/methodology/approachData for the study were collected through a survey of 321 companies registered with the Federation of Malaysian Manufacturers. Responses were analyzed using PLS-SEM to assess the relationships between transformational leadership and firm performance.FindingsThe findings show that amongst Malaysian manufacturers, transformational leadership has a strong direct effect on firm performance.Practical implicationsThese findings provide useful insights for organizations, particularly in the Malaysian manufacturing sector, seeking to be competitive and responsive to environmental changes by successfully introducing EO.Originality/valueEO has been studied in detail in the recent literature. Many new researchers have explored various composition factors of EO, and how this will have an effect on firm performance. However, there are few research studies in the area of transformational leadership amongst Malaysian manufacturing companies. This research makes an important contribution to the existing literature by empirically examining the relationship between EO and firm performance, particularly in the Malaysian manufacturing sector. Conclusion emphasizes that mechanisms to encourage and foster EO mainly autonomy, competitive aggressiveness and proactiveness are likely to result in the achievement of superior firm performance.

scholarly journals THE INFLUENCE OF DIVIDEND PAYOUT RATIO AND FREE CASH FLOW TO DEBT TO EQUITY RATIO

2017 ◽  
Vol 8 (1) ◽  
pp. 23
Author(s):  
Yurizki Wida Hapsari ◽  
Isharijadi Isharijadi ◽  
Purweni Widhianningrum
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Dividend Payout ◽  
Analytical Technique ◽  
Dividend Payments

<p>This study aimed to analyze the effect of dividend payout ratio and free cash flow to the debt to equity at the manufacturing companies which listed in the Indonesia Stock Exchange. The population of this study is manufacturing companies which listed in Indonesia Stock Exchange during the year 2010, 2011, 2012, and 2013 a number of 128 companies. Purposive sampling is used for sampling technique, as many as 33 companies. Data analytical technique in the study is multiple linear regression analysis. The results of this study proved that the dividend payout ratio had significant negative effect on the debt to equity. It showed that the dividend payments appeared as a substitute for debt in the capital structure at the company. Free cash flow positively and significantly influenced debt to equity. It was due to the investment in working capital of the company was greater than the company's operating cash flow.<em></em></p>

scholarly journals The Indirect Impact of Busy Directors on the Relationship of Family Structure and Cash Flow Sensitivity of Cash (Empirical Research in Indonesia’s Manufacturing Sector 2013-2017)

2021 ◽  
Vol 12 (1) ◽  
pp. 111-114
Author(s):  
Wahyu Santoso ◽  
Cynthia Afriani Utama
Keyword(s):  
Family Structure ◽  
Cash Flow ◽  
Manufacturing Sector ◽  
Manufacturing Companies ◽  
Flow Sensitivity ◽  
Indirect Impact ◽  
Cash Flow Sensitivity ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Research aims: This research aimed to determine the impact of family structure on the cash flow sensitivity of cash (CFSC) in the manufacturing sector. It also investigates the indirect impact of busy directors as a moderating effect.Design/Methodology/Approach: Based on a sample of Indonesia’s manufacturing companies from 2013 to 2017, the researcher uses GLS regression models on this panel data calculated with robustness fit test at the firm’s level.Research findings: It indicated that family structure has a impact positively on cash flow sensitivity of cash and statistically significant. Meanwhile, the indirect impact of busy directors  found to have a impact negatively and weakened on the relationship of family structure and CFSC, it also indiciated that quality of busy directors is an tool of corporate governance that is effectively to monitor of every family firm’s decisions.Theoretical contribution: This article enriches previous literature by justifying the impact of busy directors on the relation between every each of family’s firm decision and CFSC. Furthermore, it showed us a metric for agency problems that is the sensitivity of cash to corporate cash flows.Implication policy: Based on POJK regulations, the context of busy directors in this research refers to the roles and duties of the Board of Commissioners (BOC) which concurrently hold positions for other public companies.Research Limitation/Implication: The implications suggest that almost most of Indonesian family corporation are tend to expropriate minority by extracting rents through coporate cash flow sensitivity of cash behavior. 

PENGARUH PROFITABILITAS, ARUS KAS OPERASI, DAN ARUS KAS BEBAS TERHADAP DIVIDEN KAS PADA PERUSAHAAN MANUFAKTUR TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2005 - 2009

2014 ◽  
Vol 2 (1) ◽  
Author(s):  
Emmi Suryani Nasution
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Listed Companies ◽  
Negative Influence ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Cash Dividend ◽  
Cross Sectional ◽  
Operating Cash Flow

The purpose of this study is to examine the effect of profitability, operating cash flow, and free cash flow on cash dividend of manufacturing companies listed at the Indonesia Stock Exchange in the period 2005-2009.            The population in this study are 15 listed companies from the  manufacturing sector in Indonesia Stock Exchange which have the profitability, positive operating cash flow, positive free cash flow, and pay cash dividends. The time horizon used is a combination of cross-sectional with longitudinal (time series). The study population consists of 15 issuers with 75 observations. This study uses census methods. To examine the influence of profitability, operating cash flow, and free cash flow to cash dividends use multiple linear regression models.            The results show that (1) profitability, operating cash flow, and free cash flow simultaneously influence on the cash dividends on listed companies from the manufacturing sector at the Indonesia Stock Exchange during the 2005-2009 period. (2) Affect the profitability of cash dividends on companies from the manufacturing sector listed at the Indonesia Stock Exchange during the 2005-2009 period. (3) Operating cash flow has influence to cash dividends at companies manufacturing sector listed at the Indonesia Stock Exchange during the 2005-2009 period. (4) Free cash flow have negative influence to the cash dividend at companies manufacturing sector listed at the Indonesia Stock Exchange during the 2005-2009 period. Keywords: Profitability, Operating Cash Flow, Free Cash Flow, Cash Dividends. 

scholarly journals The Influence of Firms with Excess Free Cash Flow and Low Growth Perspective Towards Earning Management

2016 ◽  
Vol 3 (3) ◽  
pp. 380-397
Author(s):  
Marika Suma Raya Sembiring ◽  
Kathleen Kusuma Nugroho
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Significant Relationship ◽  
Audit Quality ◽  
Agency Problem ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Control Variables ◽  
Dividend Payment ◽  
The Relationship

This research aims to investigate whether firms with excess of free cash flow and low growth perspective are tend to engage in earnings management with several control variables included. We predict the relationship between each variable using multiple regressions model.  The data sample used is manufacturing companies listed in IDX from the year of 2012 to 201. The result of this research presents that there is no significant relationship between excess of free cash flow and earnings management. The reasons behind this result might be a difference in type of agency problem, in dividend policy, and in organization behavior widespread across the countries. However, we found a significant relationship between control variables to the dependent variable by means of discretionary accruals, which are firm size, IFRS implementation and audit quality towards earnings management. Keywords: Agency Problem, Earnings management, Excess Free Cash Flow, Dividend Payment.

scholarly journals Determinants of Dividend Policy

2020 ◽  
Vol 4 (1) ◽  
pp. 1-5
Author(s):  
Ratna Wijayanti Daniar Paramita
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Analysis Technique ◽  
Positive Effect

This study aims to analyze the influence of Free Cash Flow, Profitability, Liquidity and Leverage on Dividend Policy. This research was conducted at manufacturing companies listed on the Indonesian Stock Exchange in the Consumer Goods Industry sector in the 2015-2018 period. The data analysis technique used multiple linear regression analysis. This study used purposive sampling technique to obtain samples according to the specified criteria. The number of companies based on the criteria in the study were 13 companies. The results of this research are free cash flow, liquidity, and leverage have no significant effect on dividend policy, while profitability has a significant positive effect on dividend policy.

scholarly journals PROFIT MANAGEMENT IN ISLAM AND THE FACTORS

2018 ◽  
Vol 3 (1) ◽  
pp. 388
Author(s):  
Devi Permatasari
Keyword(s):  
Linear Regression ◽  
Information Asymmetry ◽  
Multiple Linear Regression ◽  
Cash Flow ◽  
Sampling Method ◽  
Management Practices ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Free Cash Flow ◽  
Manufacturing Companies

Profit Management is a phenomenon that is influenced by various factors. Among them are such as information asymmetry and free cash flow. In Indonesia alone there are already cases of profit management from several years ago. This study aims to determine the influence of information asymmetry, and free cash flow on profit management practices in manufacturing companies listed on the Stock Exchange. The population of this study are the manufacturing companies that listed in Indonesia Stock Exchange (IDX) 2012-2016. The sampling technique used was purposive sampling method. The method of analysis used in this study using multiple linear regression. The total number of samples for this study are 180 companies. But, there are found 45 samples as outlier should be excluded from sample observation. So,the final samples for this study are 136 companies. The results showed that the free cash flow has influence on profit management, and information asymmetry has no effect on profit management.Keywords:�� �Profit managements, Information Asymmetry, Free cash flow.

scholarly journals Financial Constraints and Cost of Equity: Empirical Study of Shariah Compliant Firms in Indonesia

2019 ◽  
Vol 10 (3) ◽  
pp. 371
Author(s):  
Diana Hashim Syarif ◽  
Sugeng Wahyudi ◽  
Irene Rini Demi Pangestuti
Keyword(s):  
Cash Flow ◽  
Financial Constraints ◽  
Equity Capital ◽  
Free Cash Flow ◽  
Investment Efficiency ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Capital Costs ◽  
Financial Characteristics ◽  
The Cost

This study is to investigate the relationship between financial characteristics and the cost of equity capital from sharia-based companies, which tend to be financially constrained. Using 276 observations, the results of this study indicate that financial constraints which are proxied by free cash flow have a role in influencing the cost of equity capital. This study also builds an indirect relationship of free cash flow and capital costs by proposing investment efficiency as a mediator variable. By using the causal step approach from Baron and Kenny, the test results show that investment efficiency mediates the effect of free cash flow on the cost of equity capital with an indirect effect that is stronger than the direct effect. This study also found evidence that leverage has no role in strengthening the effect of free cash flow on the cost of equity capital.

scholarly journals Pengaruh Profitabilitas, Ukuran Perusahaan, dab Arus Kas Bebas Terhadap Kebijakan Dividen

2020 ◽  
Vol 30 (1) ◽  
pp. 238
Author(s):  
Kadek Indri Pradnyavita ◽  
I Ketut Suryanawa
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Company Size ◽  
Manufacturing Companies

The Effect of Profitability, Company Size, and Free Cash Flow to Dividebd Policy   ABSTRACT Dividend policy is a policy related to dividend payments by the company. The company is faced with the decision to distribute dividends to shareholders or withhold earnings for reinvestment activities. The purpose of this study was to determine the effect of profitability, company size and free cash flow on dividend policy. This study took a sample of manufacturing companies listed on the Indonesia Stock Exchange in the period 2016-2018. The sampling technique used was purposive sampling, so as many as 13 companies were obtained. The total sample taken for 3 years was 39 observations. The technique used in this research is multiple linear regression analysis. Based on the results of the analysis of this study proves that profitability, company size, and free cash flow affect dividend policy.

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