scholarly journals Strategic Role of Efficiency to Cash Management

2020 ◽  
Vol 2 (1) ◽  
pp. 30-44
Author(s):  
Sunday Alayemi ◽  
Hussain Adebayo Salaudeen
Keyword(s):  
Empirical Evidence ◽  
Cash Flow ◽  
Fixed Effect ◽  
Cash Management ◽  
Manufacturing Companies ◽  
Hausman Test ◽  
Random Test ◽  
Strategic Role

Purpose: The study aims to examine the strategic role of efficiency to cash management, more specifically as it relates to cash generated from operations of manufacturing companies in Nigeria.  Method: Annual cash flow statements of selected manufacturing companies in Nigeria for ten years (2009 -2018) were used to conduct the Pooled Test, Random Test, Fixed Effect, and Hausman Test. Results: The results showed that efficiency has a significant effect on the cash management of manufacturing companies in Nigeria generally coupled with that of the proxies employed (CULC, LTDC, INTC, and EARQ) to measure cash management. Implications: In view of the empirical evidence, the study proffered that cash generated from the operation is very crucial and the most reliable means of generating funds for operation because it is internal; unlike funds generated from investing and financing activities.

Family Governance, Earning Quality, and Firm Performance in Indonesian Listed Firms

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Nurmala Ahmar
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Family Firm ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Main Hypothesis ◽  
Accrual Quality ◽  
Family Governance ◽  
Earning Quality

This research aimed to analyze family firm governance, earning quality, andfirm performance of manufacturing companies listed on the Indonesia StockExchange. This study also investigated the mediating effect of earning qualityon the effect of family governance toward firm performance. Earning quality is measured by earning persistence, earning predictability, earning smoothness, and accrual quality. Firm’s performance is measured by market performancein Tobin-q and operational performance in return on asset. This research usedpooled data in which earning persistence and earning predictability need 11 until 16 years observations, earning smoothness needs 2 until 7- year-observations, and accrual quality needs 12 years observations. The hypotheses testing used pathanalysis. To find empirical evidence, the main hypothesis testing was done bytesting 16 sub-hypotheses. The mediating role of earnings quality was proved bythe measurement of earnings persistence, earnings predictability, and quality ofaccruals. The role of earning quality on the effect of family governance toward firm  performance is confirmed. The results show, as much as 6 sub - hypothesessupport the main hypothesis. This study finds  the empirical evidence of the roleof earning quality  on the effecf of family governance  reflected  in the involvementof family in board of commisioner toward firm performance (Tobin-q, ROA).Keywords - Business management, family firm, firm performance, family governance, earning quality, descriptive design, Indonesia

scholarly journals Being lean: how to shape digital transformation in the manufacturing sector

2021 ◽  
Vol 32 (9) ◽  
pp. 239-259
Author(s):  
Matteo Rossini ◽  
Fabiana Dafne Cifone ◽  
Bassel Kassem ◽  
Federica Costa ◽  
Alberto Portioli-Staudacher
Keyword(s):  
Empirical Evidence ◽  
Significant Role ◽  
Industry 4.0 ◽  
Continuous Process ◽  
Radical Change ◽  
Digital Transformation ◽  
Manufacturing Companies ◽  
Content Type ◽  
Transformation Pattern

PurposeIndustry 4.0 and Lean Production are a successful match in terms of performance improvement. While we understand the combined potential, there is still poor understanding of how companies should embrace digital transformation to make it successful and sustainable, and the role that lean plays in it. In this paper, we investigate how manufacturing companies embark upon digital transformation and how being lean might affect it.Design/methodology/approachWe conducted multiple case studies with 19 manufacturing companies. We identified two clusters of companies according to their Lean maturity, and we assessed digital transformation patterns by analyzing insights coming both from cases and from the literature. Integrating cross-case analysis results, we developed a framework that shows two different digital transformation patterns according to companies’ commitment to Lean.FindingsOur findings first and foremost show the significant role of lean in driving digital transformation. We identify two patterns, namely Sustaining digital transformation pattern, characterized by the pervasive role of lean culture with small and horizontal digital changes, involvement of people and willingness to maintain continuous process improvement, and Disruptive digital transformation pattern, characterized by few and large digital steps that imply a disruptive and radical change in the company system.Practical implicationsEmpirical evidence supports the relevance of the proposed model and its practical usefulness. It can be used to design digital transformation, prepare properly the introduction of Industry 4.0 through a lean approach, and plan the future desired state, identifying the Industry 4.0 technologies that should be implemented.Originality/valueIt is widely recognized that the relationship between Industry 4.0 and lean is significant and positive, yet little evidence was presented to back that. We aim at bringing this debate forward by providing initial empirical evidence of the significant role that lean has on digital transformation, showing how lean drives the digital transformation pattern of companies.

scholarly journals Úton a megoldásalapú gondolkodás felé – szolgálatosodási jellemzők magyarországi termelővállalatoknál (Towards solution-based thinking: characteristics of servitization at Hungarian manufacturing companies)

2012 ◽  
pp. 34-45
Author(s):  
Krisztina Demeter ◽  
Levente Szász
Keyword(s):  
Developed Countries ◽  
International Literature ◽  
Manufacturing Companies ◽  
Important Conclusion ◽  
Competitive Priorities ◽  
Operational Level ◽  
Financial Benefits ◽  
Strategic Role

A cikk fő célja a magyarországi termelővállalatok szolgálatosodási folyamatának jellemzése a versenyképesség- kutatás adatainak felhasználásával. Relevanciáját az adja, hogy a nemzetközi szakirodalom a jelenséget inkább a fejlett országokban vizsgálja. A szerzők kutatásukban körüljárták, hogy a szolgálatosodás nemzetközi szakirodalom által elfogadott jellemzői mennyiben tekinthetők érvényesnek a magyarországi viszonyok közepette. A szolgálatosodást három szinten vizsgálták: stratégia, működés és pénzügyi eredményesség. Vizsgálatuk eredményei azt mutatják, hogy a nemzetközi szakirodalommal összhangban a szolgáltatások stratégiai szerepe még alacsony a magyarországi termelővállalatoknál a termelési stratégia többi versenycéljához képest. Ugyanakkor mintájukban már megtalálhatók azok a vállalatok, amelyek mind stratégiai, mind működési szinten jelentősebb hangsúlyt fektetnek a szolgáltatások nyújtására. Fontos eredmény ugyanakkor, hogy a szolgálatosodástól elvárt pénzügyi előnyök még ezeknél a vállalatoknál sem realizálódnak. _______ The main purpose of the authors is to describe the servitization process of Hungarian manufacturing companies based on data of the Competitiveness research. The relevance of this article is given by the fact that international literature analyzes this phenomenon mainly in developed countries. In the present paper they analyze to what extent characteristics of the servitization process, generally accepted in the literature, are also applicable in a developing macroenvironment, i.e. Hungary. They approach servitization from three different perspectives: strategy, operations and financial payoffs. Results of their analysis show that, in concordance with the literature, the strategic role of services at the Hungarian manufacturing companies is still lower than other manufacturing competitive priorities. However, their sample contains a number manufacturing companies that place a greater emphasis on offering services both on strategic and operational level. An important conclusion of their study is that in case of these companies financial benefits attributable to higher levels of servitization do not yet seem to materialize.

scholarly journals Cash Flow Optimality and Investment Returns: Investors Expectations in Listed Manufacturing Firms in Nigeria

2020 ◽  
pp. 39-50
Author(s):  
Theophilus Anaekenwa Aguguom
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Random Effect ◽  
P Value ◽  
Lagrangian Multiplier ◽  
Manufacturing Companies ◽  
Strategic Decisions ◽  
Hausman Test ◽  
Investment Returns

This study investigated the effect of cash flow optimality on investment returns in selected listed Manufacturing companies in Nigeria. The population consisted of listed 66 manufacturing companies on the Nigerian Stock Exchange. 25 of these manufacturing companies were purposively selected for a period of 10 years (2010-2019). The study employed data obtained from the published financial statement of the selected manufacturing companies. Panel data analysis was employed while diagnostic tests were carried out and an application of the Hausman test provided the criteria for choosing between Random Effect Models and Fixed Effect Models. Jarque-Bera Normality, Breusch, and Pagan Lagrangian multiplier tests were conducted to confirm the Hausman test results in order to decide between Random Effects and Pooled OLS. The study found that cash flow optimality had a positive statistically significant on return on assets, AdjR2 = 0.099; Wad-chi2 (4, 245) = 22.22; P-value = 0.000). Furthermore, the study revealed that cash flow optimality exhibited a positive statistical effect on Tobin’s Q, (AdjR2 = 0.130; F (4, 245) = 2.884; P-value = 0.025). Thus, the study recommended that since the essence of investment is the expected returns, managers of manufacturing companies should ensure that all strategic decisions are channeled towards this direction, and ensure efficient resources management and cash flow optimal management towards meeting investor returns expectations.

scholarly journals Pengaruh Likuiditas, Profitabilitas, Financial Leverage, dan Arus Kas Operasi Dalam Memprediksi Kondisi Financial Distress

2021 ◽  
Vol 16 (2) ◽  
pp. 68-86
Author(s):  
Dita Maretha Rissi ◽  
Lisa Amelia Herman
Keyword(s):  
Cash Flow ◽  
Financial Distress ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Analysis Method ◽  
Financial Leverage ◽  
Operating Cash Flow ◽  
Profit Value ◽  
A Company

Financial distress occurs before the bankruptcy of a company. Thus the financial distress model needs to be developed, because by knowing the company's financial distress from an early age, it is hoped that actions can be taken to anticipate conditions that lead to bankruptcy. Financial distress can be measured through financial statements by analyzing financial statements. This study aims to determine and analyze the effect of liquidity, profitability, financial leverage, and operating cash flow in predicting financial distress conditions for manufacturing companies listed on the Indonesia Stock Exchange in 2016-2020. Data from the company's official website and completed from the IDX and ICMD websites. There are independent variables, namely liquidity, profitability, financial leverage, and operating cash flow, while the dependent variable in this study is financial distress. The data analysis method used in this research is logistic regression analysis method which aims to determine the role of each independent variable in influencing the dependent variable. The results of this study indicate that liquidity has no effect on financial distress, meaning that if the company is able to pay its debts well, then it is likely that the company will not experience financial distress. Profitability has no effect on financial distress, meaning that the size of the company's profit value has no effect on the company so that it avoids financial distress conditions. Financial leverage has a positive effect on financial distress, meaning that if the company has higher debt and is not followed by high sales results, it can allow failure to pay debts which causes the company to be in financial distress. Cash flow has no effect on financial distress, meaning that if the company has a good operating cash flow value, it will not experience financial distress.

scholarly journals PENGARUH EARNINGS, CASH FLOW FROM OPERATIONS, WORKING CAPITAL FROM OPERATIONS, DAN ACCRUAL COMPONENTS TERHADAP FUTURE CASH FLOW PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2017 ◽  
Vol 20 (2) ◽  
Author(s):  
Sofia Prima Dewi ◽  
Venny Gunawan
Keyword(s):  
Data Analysis ◽  
Empirical Evidence ◽  
Cash Flow ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Future Cash Flow ◽  
Software Program

The purpose of this study was to obtain empirical evidence about the effect of earnings, cash flow from operations, working capital from operations, and accrual components to future cash flow in manufacturing companies listed in Indonesia Stock Exchange. The samples used were 165 manufacturing companies listed in Indonesia Stock Exchange during 2010-2012. Data analysis was performed with the aid of a software program Statistical Product and Service Solutions (SPSS)for Windows. The results showed that earnings, cash flow from operations, and working capital from operations have an influence on future cash flow, while accrual components does not have any influence on future cash flow.

Review of Passions Within Reason: The Strategic Role of the Emotions.

1990 ◽  
Vol 35 (7) ◽  
pp. 729-730
Author(s):  
No authorship indicated
Keyword(s):  
Strategic Role

Dividend Payout Ratio: Persoalan Free Cashflow, Debt To Equity Ratio, Kepemilikan Institutional, Investment Opportunity, Dan Kesejahteraan Karyawan

Liquidity ◽  
2017 ◽  
Vol 6 (1) ◽  
pp. 1-11
Author(s):  
Nurlis Azhar ◽  
Helmi Chaidir
Keyword(s):  
Cash Flow ◽  
Significant Influence ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Flow Ratio ◽  
Prediction Ability ◽  
Employee Welfare ◽  
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 Earning Ratio (PER) has a positive and significant influence on the Divident Payout Ratio ). Simultaneously Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) give effect to Divident Payout Ratio. The prediction ability of the five variables to the Divident Payout Ratio (DPR) is 21.3% as indicated by the adjusted R square of 0.271 while the remaining 79.7% is influenced by other factors not included in the research model.

Alignment

2016 ◽  
pp. 33-50
Author(s):  
Pier Giuseppe Rossi
Keyword(s):  
Teaching And Learning ◽  
Enactive Approach ◽  
The World ◽  
Strategic Role ◽  
Education Today ◽  
Current Context ◽  
The Subject

The subject of alignment is not new to the world of education. Today however, it has come to mean different things and to have a heuristic value in education according to research in different areas, not least for neuroscience, and to attention to skills and to the alternation framework.This paper, after looking at the classic references that already attributed an important role to alignment in education processes, looks at the strategic role of alignment in the current context, outlining the shared construction processes and focusing on some of the ways in which this is put into effect.Alignment is part of a participatory, enactive approach that gives a central role to the interaction between teaching and learning, avoiding the limits of behaviourism, which has a greater bias towards teaching, and cognitivism/constructivism, which focus their attention on learning and in any case, on that which separates a teacher preparing the environment and a student working in it.

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