scholarly journals Does cash flow affect investment? Evidence from the romanian capital market.

2013 ◽  
Vol 1 (1) ◽  
Author(s):  
Andriana Putintica ◽  
Carmen Giorgiana Bonaci
Keyword(s):  
Least Squares ◽  
Cash Flow ◽  
Capital Market ◽  
Fixed Effects ◽  
Listed Companies ◽  
Corporate Investments ◽  
Flow Fluctuation

Our paper addresses the relation between corporate investments and cash flow. While literature agrees upon the existence of a correlation between the two, its interpretation continues to generate intense debates. We use data from a sample of 125 Romanian listed companies for the 2005-2011 period. Using a fixed effects least squares model we document a positive significant association between investments and cash flow. The results show that a 1% cash flow fluctuation leads to a 0.27% alteration of the planned investments. We therefore add to the literature on a widely debated topic by bringing evidence in the case of Romanian listed companies.

Sources of origin of operating cash flows in Polish listed companies

2017 ◽  
Vol 45 (4) ◽  
pp. 69-76
Author(s):  
Edyta Mioduchowska-Jaroszewicz
Keyword(s):  
Cash Flow ◽  
Capital Market ◽  
Intangible Assets ◽  
Listed Companies ◽  
Cash Flows ◽  
Investment Expenditure ◽  
Research Hypothesis ◽  
Operating Cash Flows

The aim of the article was to conduct a research on the origin of operating cash flows in Polish listed companies. The main objective of the article was to investigate the level of depreciation and its use in the operating cash flows of companies operating on the Polish capital market. The first was to examine and analyse that depreciation is the main source of the cash flow from businesses. The second hypothesis was a complement to the first hypothesis and concerned the examination of whether 100% of the depreciation was transferred to the investment expenditure. The results of the study presented in the article on depreciation in operating cash flows as the main source of operating cash have been positively confirmed. The average depreciation level ranges from 31% to 47%. The rela-tionship between investment expenditures and depreciation was also examined. Research shows that depreciation is wholly attributable to investment expenditures related to the acquisition of property, plant and equipment and intangible assets, or its value exceeds expenditure. This situation positively confirms the second research hypothesis that depre-ciation is used as investment expenditure.

Research on Excessive Investment with DEA Analysis for Chinese Listed Companies

2011 ◽  
Vol 225-226 ◽  
pp. 1208-1211 ◽  
Author(s):  
Jing Long ◽  
Yan Xi Li
Keyword(s):  
Cash Flow ◽  
Capital Market ◽  
Growth Function ◽  
Listed Companies ◽  
Flow Sensitivity ◽  
Chinese Listed Companies ◽  
Cash Flow Sensitivity ◽  
Dea Analysis ◽  
Dea Method ◽  
Q Values

This paper measured level of corporate over-investment with DEA method. In this paper, the empirical research tested the excessive levels of investment in listed companies. Studies have been shown by investment-cash flow sensitivity and growth function in metrics when excessive levels of investment in listed companies in China. Tobin Q values are not objective enough in China's capital market, while DEA method can be more scientific measure of Chinese listed companies for the level of over-investment.

scholarly journals The Research on the Measurement of Inefficiency Investment Degree of China's GEM Listed Companies

2016 ◽  
Vol 2 (1) ◽  
pp. 130
Author(s):  
Huina Tan
Keyword(s):  
Information Asymmetry ◽  
Cash Flow ◽  
Capital Market ◽  
Net Present Value ◽  
Investment Decisions ◽  
Listed Companies ◽  
Free Cash Flow ◽  
Principal Agent ◽  
Present Value ◽  
Senior Managers

October 30, 2009, the GEM officially launched, which was an important step to improve China's capital market system. For the listed companies, investment efficiency is one of the three major investment decisions. Due to the short period of study, the research area is less related to the GEM listed companies.Theoretically, in the perfect market described by Modigliani and Miller, investment decisions are totally determined by investment opportunities, regardless of the impact of other factors. But in the real world of imperfections, agent problems and information asymmetry can lead to inefficient investment. From the point of view of the Principal-agent Theory and the Free Cash Flow hypothesis, the principal-agent conflict between the shareholders and the senior managers leads to the fact that the senior managers maximize their own utility and put the free cash flow into the project whose net present value is not greater than zero. In the information asymmetry theory and financing constraints hypothesis, the information asymmetry between the company and the external investors will make it difficult for external investors to make an accurate valuation of the company. To reduce the loss of the risk, they tend to underestimate the value of the company, so the financing cost of company in the capital market have been raised, and when the internal cash is in the shortage, the senior managers do not want to choose external financing with high cost to meet the investment need, to give up investment in project whose the net present value is larger than zero, resulting in underinvestment.At the level of empirical analysis, this paper chose the financial data and market transaction data of the GEM listed companies from 2010 to 2015 to study. Based on the Expected Investment Model of Richardson (2006), this paper used the generalized difference moment method (GMM) to estimate the expected additional investment, with the amount of investment, resulting in overinvestment and underinvestment. The conclusion is that there are overinvestment behavior and underinvestment behavior of the GEM listed companies in the research period.This paper measured the level of inefficient investment of listed companies on the GEM, so that the micro-subject in the multi-level capital market can clearly define the direction of its own need. In addition, we also hope to provide empirical reference for the policy makers in the formulation of relevant policies to create a good market environment for listed companies.

scholarly journals Investment Cash Flow Sensitivity and Tobin’s Q: The Case of Advanced Emerging Markets in Latin America

2020 ◽  
Vol 13 (1) ◽  
pp. 89
Author(s):  
Bruno Figlioli ◽  
Fabiano Guasti Lima
Keyword(s):  
Cash Flow ◽  
Latin American ◽  
Capital Market ◽  
Relevant Information ◽  
Cash Flows ◽  
Corporate Investments ◽  
Flow Sensitivity ◽  
Cash Flow Sensitivity ◽  
Internal Generation ◽  
The Capital Market

This paper examines whether the capital market and the internal generation of cash flows bring relevant information to decisions on corporate investments. For this investigation, we used data from 255 companies located in four Latin American (LA) countries: Brazil, Chile, Mexico and Peru (BCMP countries). The analysis period is from 2000 to 2017. The results indicate that cash flow represents one of the main drivers of corporate investments. In contrast, there were no indications that the capital market translates into a mechanism for transmitting useful information to firm managers about investments. Other drivers of value identified are associated with sales, cash and cash equivalents, and asset tangibility.

The antecedents of corporate social and environmental responsibility discourse in Pakistan: Multiple theoretical perspectives

2019 ◽  
Author(s):  
Muhammad Farhan Basheer ◽  
Saqib Muneer ◽  
Muhammad Atif ◽  
Zubair Ahmad
Keyword(s):  
Institutional Theory ◽  
Least Squares ◽  
Agency Theory ◽  
Stakeholder Theory ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Environmental Responsibility ◽  
Legitimacy Theory ◽  
Discourse Practices ◽  
Corporate Social

The primary purpose of the study is to explore the antecedents of corporate social and environmental responsibilities discourse practices in Pakistan. The industry sensitivity, government shareholding, block holder ownership, print media coverage, environmental monitoring programs, and strategic posture are examined as antecedents of corporate social and environmental responsibility practices. A multidimensional theoretical perspective namely stakeholder theory (ST), institutional theory (IT), agency theory (PAT), and legitimacy theory (LT) is used to conceptualize the phenomena. All the four of perspective theories (positive accounting theory, legitimacy theory, stakeholder theory, and institutional theory) claim that there are ‘pressures’ that impact the organization. How much ‘pressures’ are recognized, managed or satisfied differs from one perspective of theory to the other. To estimate the data, this study uses three sets of panel data models, i.e., the pooled ordinary least squares model (POLS) or constant coefficients model, fixed effects (FEM or least squares dummy variable/LSDV model) and random-effects models. The final sample is comprising of 173 firms over eight years from 2011 to 2017. The firms listed in PSX are included in the sample. Overall the findings of the study have shown agreement with the proposed results. However, the study has provided more support to the institutional theory and stakeholder theory. Keywords: Corporate Social Responsibility, Stakeholders Theory, Agency Theory, Pakistan

scholarly journals Analysis of the New Kuznets Relationship: Considering Emissions of Carbon, Methanol, and Nitrous Oxide Greenhouse Gases—Evidence from EU Countries

2021 ◽  
Vol 18 (6) ◽  
pp. 2907
Author(s):  
Mara Madaleno ◽  
Victor Moutinho
Keyword(s):  
Nitrous Oxide ◽  
Least Squares ◽  
Fixed Effects ◽  
Ghg Emissions ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Long Run ◽  
Short Run ◽  
The Eu

Decreased greenhouse gas emissions (GHG) are urgently needed in view of global health threat represented by climate change. The goal of this paper is to test the validity of the Environmental Kuznets Curve (EKC) hypothesis, considering less common measures of environmental burden. For that, four different estimations are done, one considering total GHG emissions, and three more taking into account, individually, the three main GHG gases—carbon dioxide (CO2), nitrous oxide (N2O), and methane gas (CH4)—considering the oldest and most recent economies adhering to the EU27 (the EU 15 (Old Europe) and the EU 12 (New Europe)) separately. Using panel dynamic fixed effects (DFE), dynamic ordinary least squares (DOLS), and fully modified ordinary least squares (FMOLS) techniques, we validate the existence of a U-shaped relationship for all emission proxies considered, and groups of countries in the short-run. Some evidence of this effect also exists in the long-run. However, we were only able to validate the EKC hypothesis for the short-run in EU 12 under DOLS and the short and long-run using FMOLS. Confirmed is the fact that results are sensitive to models and measures adopted. Externalization of problems globally takes a longer period for national policies to correct, turning global measures harder and local environmental proxies more suitable to deeply explore the EKC hypothesis.

scholarly journals Determinants of Firm Performance: Evidence from Romanian Listed Companies

2016 ◽  
Vol 9 (1) ◽  
pp. 53-69 ◽  
Author(s):  
Sebastian Lazăr
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Value Added ◽  
Listed Companies ◽  
Sales Growth ◽  
Fixed Effects Model ◽  
Resource Based View ◽  
Firm Profitability ◽  
Negative Effect ◽  
Positive Effect

AbstractThe paper investigates firm-specific determinants of firm profitability for Romanian listed companies over the 2000-2011 period within the framework of resource based view of the firm. The results show that tangibles, leverage, size and labour intensity have negative effect on firm performance, while sales growth and value added have a positive effect. The results prove robust when introducing two-way fixed effects model and industry year effects model (in order to simultaneously account for specific industry characteristics and time effects).

scholarly journals Research on the Influence of Corporate Credit Culture on Corporate Financing Constraints--Panel data analysis based on A-share listed companies

2021 ◽  
Vol 272 ◽  
pp. 02029
Author(s):  
Zhiqiang Liu ◽  
Lu Zhou
Keyword(s):  
Fixed Effects ◽  
Panel Data Analysis ◽  
Listed Companies ◽  
Practical Significance ◽  
Financing Constraints ◽  
Fixed Effects Model ◽  
Corporate Financing ◽  
New Perspective ◽  
Corporate Integrity ◽  
A Share

This paper takes China’s A-share listed companies from 2009 to 2019 as a sample, uses the mixed ols model and the two-way fixed effects model to conduct empirical analysis, and finds that when the corporate integrity culture is strong, the financing constraints faced by the company are lower. This conclusion remains robust after considering endogenous issues. This research not only explores ways to alleviate corporate financing constraints from a new perspective, but also has important practical significance for improving corporate governance and promoting the effective allocation of financial market resources.

scholarly journals Kidas Model, Cash Flow, and Size Case of Palestine

2021 ◽  
Vol 16 (4) ◽  
pp. 48
Author(s):  
Tamer Bahjat Sabri
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Listed Companies ◽  
Cash Flows ◽  
T Test ◽  
Financial Statement ◽  
S Model

This paper examines the nature of interaction between Kida’s model, the cash flows (operating, investing, financing) and the size. It covers the period between 2013 and 2014 based on annual financial statement of Palestinian listed companies in Palestine Stock Exchange. In order to test the hypotheses of the study, the researcher used independent samples T-test. The results show that we accept all null hypotheses, so Kida’s model does not distinguish between high and low cash flow (operating, investing, financing) and the size. Other results show that the model is unable sometimes to predict the failure of companies.

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