scholarly journals Testing the Relationship between Free Cash Flow and Company Performance in Borsa Istanbul

2017 ◽  
Vol 10 (5) ◽  
pp. 148
Author(s):  
Eyup Kadioglu ◽  
Saim Kilic ◽  
Ender Aykut Yilmaz
Keyword(s):  
Cash Flow ◽  
Negative Relationship ◽  
Free Cash Flow ◽  
Company Performance ◽  
Data Set ◽  
Dividend Payments ◽  
Significant Negative Relationship ◽  
Free Cash Flow Hypothesis ◽  
The Relationship ◽  
Positive Effect

This study tests whether free cash flow affects the performance of firms in the context of the free cash flow hypothesis. The study applies a panel regression method to a data set consisting of 2,175 observations belonging to 370 companies listed in Borsa Istanbul during the period 2009-2015. A significant, negative relationship is found between free cash flow and firm performance measured by Tobin’s Q ratio. Greater free cash flow in the hands of managers leads to the lower performance and, conversely, less free cash flow in the hands of managers leads to higher performance. The results also confirm that leverage and dividend payments have a positive effect on performance. Thus, the results support the free cash flow hypothesis for Turkey.

scholarly journals Corporate Governance and Firm Free Cash Flows: Evidence from Malaysia

2013 ◽  
Vol 5 (11) ◽  
pp. 531-537
Author(s):  
Razieh Adinehzadeh
Keyword(s):  
Corporate Governance ◽  
Cash Flow ◽  
Audit Committee ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Governance Mechanism ◽  
Data Set ◽  
Corporate Governance Mechanism ◽  
Free Cash Flows ◽  
The Relationship

This study provides view of free cash flow and corporate governance (CG) by addressing the relationship between audit committee characteristics with free cash flow. Specifically, this study explores whether audit committee characteristics are substitutes to control agency problem regarding to free cash flow within Malaysian firms. The data set comprise of 200 firm observations Malaysian companies for four consecutive years, which comprise of 2005 to 2008. The results show that size of audit committee, frequency of audit committee meeting, proportion of audit committee independence is positively associated with level of free cash flow (FCF). The results of study highlight the importance of corporate governance mechanism, in the form of audit committee characteristics, in the management of cash flow.

Agency Cost and Dividend Pay-out: A Study of Selected Listed Manufacturing Firms in Nigeria

2018 ◽  
Vol 1 (1) ◽  
pp. 42 ◽  
Author(s):  
Helen Obiageli Anazonwu ◽  
Francis Chinedu Egbunike ◽  
Felix Nwaolisa Echekoba
Keyword(s):  
Cash Flow ◽  
Agency Costs ◽  
Stock Exchange ◽  
Agency Cost ◽  
Manufacturing Firms ◽  
Free Cash Flow ◽  
Dividend Payments ◽  
Negative Effect ◽  
Cost Studies ◽  
Positive Effect

Agency cost is an internal cost which arises between management (agent) and shareholder (principal), because of the diverging interest of the two parties. Dividend payments are often employed to mitigate this cost. Studies have examined the effect of dividend pay-outs on agency costs documenting mixed findings. However, the literature on the reverse effect of agency costs on dividend pay-outs is still nascent. The main objective of the study is to examine the effect of agency cost on dividend pay-out of listed manufacturing firms in Nigeria. The study used a panel research design. The population of the study comprised listed manufacturing firms, but delimited to firms in conglomerate and consumer goods sectors of the Nigerian Stock Exchange. Data for the study were collected from yearly financial statements of the selected firms. The hypotheses were tested using pooled OLS Regression. The dependent variable of the study was dividend pay-out, while assets to sales ratio, leverage, and free cash flow were proxies of agency cost. Firm size and profitability measures (ROA and ROE) were used as control variables in the study. The study found a significant and positive effect of assets to sales ratio and free cash flow, and a significant and negative effect of leverage on dividend pay-out. The study recommended amongst others that, managers should consider the implication of agency costs in the design of in the design and implementation of a dividend policy.

scholarly journals MOTIF KECURANGAN, ADANYA KESEMPATAN DAN MANIPULASI LABA

2016 ◽  
Vol 4 (2) ◽  
pp. 133
Author(s):  
Shintya Dewi Adi Putri
Keyword(s):  
Cash Flow ◽  
Negative Correlation ◽  
Stock Exchange ◽  
Significant Negative Correlation ◽  
Free Cash Flow ◽  
Earnings Manipulation ◽  
Quality Audit ◽  
Dividend Payments ◽  
The Relationship ◽  
Research Analysis

This research examines the relationship between fraud motives (leverage and dividends) and earnings manipulation; and the relationship between opportunities (quality audit and free cash flow) and earnings manipulation. This research used a sample of 24 companies listed on the Indonesia Stock Exchange in 2011-2013. The results of this research analysis is that there is a significant negative correlation between dividend payments and earningsmanipulation. This research also proved that free cash flow has a positive correlation with earnings manipulation.

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 Director Ownership, Governance, and Performance

2013 ◽  
Vol 48 (1) ◽  
pp. 105-135 ◽  
Author(s):  
Sanjai Bhagat ◽  
Brian Bolton
Keyword(s):  
Corporate Governance ◽  
Negative Relationship ◽  
Board Members ◽  
Company Performance ◽  
Sarbanes Oxley ◽  
Significant Negative Relationship ◽  
And Performance ◽  
Director Ownership ◽  
The Impact ◽  
The Relationship

AbstractWe study the impact of the Sarbanes-Oxley Act on the relationship between corporate governance and company performance. We consider 5 measures of corporate governance during the period 1998–2007. We find a significant negative relationship between board independence and operating performance during the pre-2002 period, but a positive and significant relationship during the post-2002 period. Our most important contribution is a proposal of a governance measure, namely, dollar ownership of the board members, that is simple, intuitive, less prone to measurement error, and not subject to the problem of weighting a multitude of governance provisions in constructing a governance index.

Free Cash Flow and Earnings Management

2021 ◽  
pp. 85-103
Author(s):  
Sandra Alves
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Fixed Effects ◽  
Positive Impact ◽  
Free Cash Flow ◽  
Mediating Effect ◽  
European Countries ◽  
Free Cash Flow Hypothesis ◽  
Fixed Effects Regression ◽  
The Relationship

This study draws on Jensen's free cash flow hypothesis to evaluate the relationship between free cash flow and earnings management. This study also examines whether the level of leverage moderate the relationship between free cash flow and earnings management. This study uses a fixed effects regression model to examine the effect of free cash flow on earnings management and to test whether leverage levels moderate that relationship for an unbalanced panel of 13,850 firms' year observations from 2011 to 2018 across five European countries. Consistent with the free cash flow hypothesis of Jensen, this study suggests that firms with high free cash flow are more likely to manage earnings. Further, the results also suggest that the positive impact of free cash flow on earnings management is attenuated in firms with high leverage levels. This study contributes to the literature by examining how free cash flow affects the extent of earnings management and by shedding light on the mediating effect of leverage on the relationship between free cash flow and earnings management.

scholarly journals Permintaan Investor dan Karakteristik Keuangan terhadap Keputusan Pembayaran Dividen

2020 ◽  
Vol 12 (2) ◽  
pp. 327-336
Author(s):  
Imelia Carolina Tedja ◽  
Tarsisius Renald Suganda ◽  
Fitri Oktariani
Keyword(s):  
Cash Flow ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Negative Influence ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Dividend Payment ◽  
Dividend Payments ◽  
Financial Characteristics ◽  
Positive Effect

Dividend payment decision is an essential policy of companies to provide investors’ expectation of investment returns. This research is aimed to prove the catering theory of dividend and financial characteristics affecting corporate decisions in dividend payments. The study was conducted on a manufacturing company published on the Indonesia Stock Exchange (IDX). Analyzing the prediction of catering theory and financial analysis of companies in making dividend payments is conducted using the logistic regression method. This research is a quantitative research and moreover manufacturing companies as research sample were used from 2014 to 2018. Financial statements were obtained from the Indonesia Stock Exchange (IDX). The result of this study indicated that investors’ demand has positive effect on dividend payment decisions. Hence, companies consider catering in dividend payment decisions. While corporate financial characteristics such as free cash flow have positive effect on dividend payment decisions, profitability has no influence on dividend payment decisions and moreover, leverage has a negative influence on dividend payment decisions. Keywords: Catering Theory, Investor Demand, Free Cash Flow, Profitability, Leverage

Incidental specialised vocabulary acquisition: a case of incidental medical terms acquisition from students’ perspective

2021 ◽  
Author(s):  
Elham Abdullah Ghobain ◽  
Keyword(s):  
Negative Relationship ◽  
Extended Period ◽  
Focus Group Discussions ◽  
Group Discussions ◽  
Medical Terms ◽  
Significant Negative Relationship ◽  
Post Test ◽  
Two Phases ◽  
The Relationship ◽  
Technical Terms

This study observes a particular group of students learning medical terms (MT) implicitly through studying medical subjects. That is, based on the policy followed in the context of the study, students shall not receive any deliberate terms instruction. This paper investigates their experiences and attitudes towards acquiring MT in such a situation. Students’ acquisition and proficiency, hypothesizing a positive relationship between the two constructs, are self-assessed through pre- and post-test surveys. The surveys included 114 and 95 students in each phase, respectively. Prior to the surveys, focus group discussions were conducted, according to which the questionnaire was developed. A statistical correlational Pearson test was done to examine the relationship between students’ proficiency and incidental terms acquisition. The results indicated a significant negative relationship between the two constructs tested. The study also tested the effect of time on increasing acquisition through conducting a paired independent t-test between the two sets of data. The results found that a more extended period was significant to incidental acquisition. Overall, through comparing the means, modes, and medians in the two phases (pre- and post-test), the findings reveal an increase in the students’ terms acquisition volume. However, students seem not to favour the approach and still advocate explicit instruction for technical terms.

scholarly journals PENGARUH FREE CASH FLOW, FINANCIAL DISTRESS, DAN INVESTMENT OPPORTUNITY SET TERHADAP MANAJEMEN LABA

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Sally Irawan ◽  
Prima Apriwenni
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Financial Distress ◽  
Stock Exchange ◽  
Total Sample ◽  
Free Cash Flow ◽  
Investment Opportunity ◽  
Purposive Sampling ◽  
Investment Opportunity Set ◽  
Positive Effect

<p><strong><em>ABSTRACT :  </em></strong><em>Stakeholders pay attention to the earnings report, thus encouraging company managers to plan strategies to produce reports expected by stakeholders. Earnings management is one way that can be done. Managers can intervene the earnings management by increasing or decreasing profit in order to achieve a certain level of profit which benefits himself or the company. This study aims to determine the influence of free cash flow, financial distress, and investment opportunity set on earnings management. </em><em>The research sample consisted of 11 infrastructure, utility, and transportation companies listed on the Indonesia Stock Exchange in 2014-2018 with the total sample of 55 data. This study used a purposive sampling method and was tested with SPSS 22.0 Software. The results show that the data have met the pooling test, classical assumptions and established criteria. The results of the F test show that the earnings management variable is affected simultaneously by free cash flow, financial distress, and investment opportunity set variables. The t test results show that the free cash flow and investment opportunity set have a significant positive effect on earnings management, whereas financial distress does not. In sum, there is enough evidence that free cash flow and investment opportunity set positively affect earnings management, but financial distress does not have enough evidence to influence earnings management.</em></p><p><strong><em>Keywords: </em></strong><em> Earnings Management, Free Cash Flow, Investment Opportunity Set, Financial Distress.</em></p><p><em> </em></p><p><strong>ABSTRAK:</strong> Laporan laba menjadi perhatian para <em>stakeholders</em> sehingga mendorong manajer perusahaan melakukan perencanaan strategi untuk menghasilkan laporan yang diharapkan <em>stakeholder</em>. Manajemen laba adalah salah satu cara yang dapat dilakukan. Intervensi manajer untuk melakukan manajemen laba dengan cara menaikkan atau menurunkan laba guna mencapai tingkat laba tertentu untuk menguntungkan dirinya sendiri atau perusahaan. Penelitian ini bertujuan untuk mengetahui pengaruh <em>free cash flow, financial distress, </em>dan <em>investment opportunity set </em>terhadap manajemen laba. Sampel penelitian ini adalah perusahaan infrastruktur, utilitas, dan transportasi yang terdaftar di Bursa Efek Indonesia periode 2014-2018. Total sampel yang digunakan adalah 11 perusahaan dengan data observasi yang diperoleh sebanyak 55. Teknik pengambilan sampel yang digunakan adalah <em>non-probability sampling</em> dengan menggunakan metode <em>purposive sampling</em> dan pengujian yang dilakukan dengan bantuan <em>software</em> SPSS 22.0. Hasil penelitian dari data yang digunakan,  untuk uji pooling dan asumsi klasik telah lulus uji dan sudah memenuhi kriteria yang ditetapkan. Hasil uji F menunjukkan bahwa variable manajemen laba dipengaruhi secara simultan oleh variable <em>free cash flow, financial distress, </em>dan <em>investment opportunity set. </em>Dari hasil uji t memperlihatkan hasil bahwa <em>free cash flow </em>dan<em> investment opportunity set </em>mempunyai nilai signifikan positif terhadap manajemen laba, tapi untuk <em>financial distress </em>tidak mempunyai nilai signifikan terhadap manajemen laba. Kesimpulan dari penelitian ini adalah<em> free cash flow </em>dan <em>investment opportunity set </em>berpengaruh positif terhadap manajemen laba, sedangkan <em>financial distress </em>tidak berpengaruh terhadap manajemen laba.</p><p><strong>Kata Kunci:</strong> Manajemen Laba,<em> Free Cash Flow,  Investment Opportunity Set, Financial Distress</em></p><p> </p>

scholarly journals Kecerdasan Emosi Dan Depresi Pada Mahasiswa Yang Sudah Menikah

2019 ◽  
Vol 6 (2) ◽  
pp. 146
Author(s):  
Azizah Fitriah
Keyword(s):  
Emotional Intelligence ◽  
Hypothesis Test ◽  
Negative Relationship ◽  
Field Research ◽  
Short Term ◽  
Significant Negative Relationship ◽  
Correlational Approach ◽  
The Individual ◽  
Married Students ◽  
The Relationship

Every human being will one day experience a tense period in the short term when facing known problems such as career pressures, family disputes or quarrels, material pressures, and personal despair, and we will think that this is depression, which is not is an important problem because it will resolve itself, but none of these fleeting conditions is depression. Good emotional intelligence can reduce aggression, especially in adolescents. Therefore, if emotions are managed successfully, the individual will be able to entertain themselves when overwritten by sadness, can release anxiety, moodiness or offense and rise quickly again from it all. This research is field research with a correlational approach, exploring the relationship between depression and emotional intelligence in married students. The results of the hypothesis test show that between emotional intelligence and depression in married students has a significant negative relationship (XY = -0.411; sig = 0.014 <0.05). This is in accordance with the data obtained from the SPSS 19 for Windows program, stating that r table 0.334 and r xy (r hit) -0.411, said to be significant if r xy = 0.411> r table = 0.334. In other words, the higher the emotional intelligence of students who are married, the lower the possibility of depression.

Sign in / Sign up

Export Citation Format

Share Document