scholarly journals Empirical Investigation of Free Cash Flow Hypothesis: Evidence from Jordanian Capital Market

2014 ◽  
Vol 7 (3) ◽  
Author(s):  
Ziad Zurigat ◽  
Iaad I.S. Mustafa Sartawi ◽  
Hassan Aleassa
Keyword(s):  
Cash Flow ◽  
Capital Market ◽  
Empirical Investigation ◽  
Free Cash Flow ◽  
Free Cash Flow Hypothesis

scholarly journals Pengaruh Free Cash Flow, Leverage, Net Profit Margin dan Pertumbuhan Perusahaan terhadap Dividen Payout Ratio Perusahaan Property Real and Estate yang Terdaftar di Bursa Efek Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 363-371
Author(s):  
Kevin Kevin ◽  
Nerlia Nerlia ◽  
Annisa Nauli Sinaga ◽  
Thomas Firdaus Hutahean ◽  
Siti Tiffanny Guci
Keyword(s):  
Cash Flow ◽  
Capital Market ◽  
Stock Price ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Profit Margin ◽  
Analysis Model ◽  
Stock Trading ◽  
Net Profit

IDX is one of the places for stock trading transactions of various companies in Indonesia. This study aims to analyze the factors that affect the company’s stock price in Indonesian capital market especially in Property Real and Estate. The variables used in this study is Free Cash Flow, Leverage, Growth Company, and dividen policy. This study uses a quantitative approach with multiple linear regression analysis model. This study uses the period 2013-2016. The number of observations used in this study were 14 observations. The results showed that the variable Free Cash Flow, Leverage, Net profit margin and Growth Company has  not significantly effect Dividen Policy. Keywords: Free Cash Flow, Leverage, Net Profit Margin, Growth Company

An Examination of the Free Cash Flow and Information/Signaling Hypotheses Using Unexpected Dividend Changes Inferred from Option and Stock Prices: The Case of Regular Dividend Increases

2011 ◽  
Vol 14 (03) ◽  
pp. 563-600 ◽  
Author(s):  
Sheng-Syan Chen ◽  
Kuei-Chin Fu
Keyword(s):  
Research And Development ◽  
Cash Flow ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Positive Association ◽  
Free Cash Flow ◽  
High Q ◽  
Information Signaling ◽  
Dividend Increases ◽  
Free Cash Flow Hypothesis

This paper measures unexpected dividend changes in testing the free cash flow and information/signaling hypotheses using the Bar–Yosef/Sarig method. The empirical findings reveal the following: (i) The association between announcement period abnormal returns and the cash level is significantly positive for low q firms; (ii) The positive association between announcement period, abnormal returns, and the cash level is stronger in low q than in high q firms for most regressions; (iii) Low q firms reduce their capital and research and development (R&D) expenditures during the four fiscal years following dividend increase announcements. Our results are consistent with the free cash flow hypothesis.

scholarly journals THE FREE CASH-FLOW THEORY VERSUS FINANCIAL CONSTRAINTS, INVESTMENTS, CORPORATE GOVERNANCE AND SOFT BUDGETING PROBLEMS

2001 ◽  
Vol 51 (4) ◽  
pp. 489-512
Author(s):  
P. HARBULA
Keyword(s):  
Cash Flow ◽  
Capital Market ◽  
Financial Constraints ◽  
Flow Theory ◽  
Conclusive Evidence ◽  
Free Cash Flow ◽  
Capital Market Imperfections ◽  
Special Cases ◽  
Theory Versus ◽  
Made In

The supposed preference of firms for internal financial sources to fund their investments can be explained by either the free cash-flow or the financial constraints theories, both relying on asymmetric information. Neither theory was found fully valid by recent research. Using a French data panel, conclusive evidence will be made in favour of the free cash-flow theory in special cases. The validity of the free cash-flow theory in special cases will bring new issues to light with the introduction of a new definition: soft budgeting problem of capital. Through this analysis, the possible interaction between capital market imperfections and general equilibrium will also gain new dimension.

A test of the free cash flow hypothesis

1991 ◽  
Vol 29 (2) ◽  
pp. 315-335 ◽  
Author(s):  
Larry H.P. Lang ◽  
RenéM. Stulz ◽  
Ralph A. Walkling
Keyword(s):  
Cash Flow ◽  
Free Cash Flow ◽  
Free Cash Flow Hypothesis

Economic Sources of Gain in Stock Repurchases

2004 ◽  
Vol 39 (3) ◽  
pp. 461-479 ◽  
Author(s):  
Konan Chan ◽  
David Ikenberry ◽  
Inmoo Lee
Keyword(s):  
Cash Flow ◽  
Market Reaction ◽  
Free Cash Flow ◽  
Stock Repurchases ◽  
Initial Reaction ◽  
Cross Sectional ◽  
Economic Role ◽  
Related Information ◽  
Long Run ◽  
Free Cash Flow Hypothesis

AbstractPrevious studies offer a mixed understanding of the economic role of stock repurchases. This paper investigates three key economic motivations—mispricing, disgorging free cash flow, and increasing leverage—by evaluating cross-sectional differences in both the initial market reaction and long-run performance. The initial reaction provides some support for the mispricing story. However, subsequent earnings-related information shocks suggest that the initial market reaction is incomplete and that long-run performance may be informative. The long-horizon return evidence is most consistent with the mispricing hypothesis and, to some degree, the free cash flow hypothesis. We find little support for the leverage hypothesis.

scholarly journals Agency problems and audit fees: further tests of the free cash flow hypothesis

2009 ◽  
Vol 50 (2) ◽  
pp. 321-350 ◽  
Author(s):  
Paul A. Griffin ◽  
David H. Lont ◽  
Yuan Sun
Keyword(s):  
Cash Flow ◽  
Agency Problems ◽  
Audit Fees ◽  
Free Cash Flow ◽  
Free Cash Flow Hypothesis
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