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.

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.

Arborista, Inc.: An Instructional Resource Case

2013 ◽  
Vol 28 (3) ◽  
pp. 681-690 ◽  
Author(s):  
Marc P. Picconi ◽  
Kimberly J. Smith ◽  
Alexander Woods
Keyword(s):  
Cash Flow ◽  
Direct Method ◽  
Cash Flows ◽  
Integrated System ◽  
Net Income ◽  
Managerial Accounting ◽  
Early Integration ◽  
Operating Cash Flows ◽  
Cash Flow Statement ◽  
Statement Of Cash Flows

ABSTRACT: This deceptively simple case is intended for use as early as the first day of an M.B.A. core accounting course or as a focused review for an undergraduate accounting course. It achieves three primary objectives: accelerating student learning about the statement of cash flows, emphasizing the importance of both the cash flow statement and the income statement in valuation and capital markets, and introducing the three primary financial statements as an integrated system. The case also features the use of the direct method of presenting operating cash flows, both as a pedagogical tool and to allow interested instructors to increase their focus on that method. We have found that students benefit from the early integration of the cash flow statement, as well as the ability to clearly understand how operating cash flows are similar to—and different from—net income. Finally, the case provides an optional managerial accounting module for instructors who teach a course that integrates financial and managerial accounting.

Capital Market Pressure, Disclosure Frequency-Induced Earnings/Cash Flow Conflict, and Managerial Myopia (Retracted)

2005 ◽  
Vol 80 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Sanjeev Bhojraj ◽  
Robert Libby
Keyword(s):  
Stock Market ◽  
Cash Flow ◽  
Capital Market ◽  
Cash Flows ◽  
Mandatory Reporting ◽  
Managerial Myopia ◽  
Near Term ◽  
The Impact ◽  
Market Pressures ◽  
Market Pressure

We examine the effects of increased capital market pressure and disclosure frequency-induced earnings/cash flow conflict on myopic behavior. In our experiments, experienced financial managers choose between projects where a conflict exists between near-term earnings and total cash flow. Managers more often choose projects that they believe will maximize short-term earnings (and price) as opposed to total cash flows in response to increased capital market pressure resulting from a pending stock issuance, holding constant agency frictions and other stock market pressures. When faced with increased capital market pressure, changes in disclosure frequency cause managers to behave more or less myopically depending on the impact of the change on the pattern of earnings and the resulting earnings/cash flow conflict. Our study provides insights into managers' beliefs about stock market pressures, mandatory reporting, and the availability of alternative communications channels, and contributes to literature on managerial myopia and earnings management, as well as current debates over disclosure frequency.

scholarly journals Outsider Estimation of the Fair Value of Bank Stocks: Computational and Conceptual Issues

2003 ◽  
Author(s):  
Mohamed Ariff ◽  
Lina Suranto
Keyword(s):  
Cash Flow ◽  
Poor Performance ◽  
Fair Value ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Market Values ◽  
Operating Cash Flows ◽  
Operating Cash Flow ◽  
Better Than ◽  
Naive Model

This paper attempts to fill a void in the finance literature by reporting the reliability of theoretical valuation models against the market values of banking corporations. The dividend, operating cash flows and the free cash flow valuation approaches are operationalised to estimate fair values of banks. These values are then compared with market values. This results, using the Theil’s U-coefficient, show that the operating cash flow approach provides estimates that are better than the naïve model estimates. The other two approaches produced results no better than the naïve model. A probable reason for the poor performance of the free cash flow approach is suggested. Outsider’s estimation of investment values needed for free cash flow calculation is likely to introduce serious errors irrespective of the theoretical bases of models widely used in the industry.  

scholarly journals Net Operating Working Capital, Capital Budgeting, And Cash Budgets: A Teaching Example

2016 ◽  
Vol 9 (1) ◽  
pp. 31-38 ◽  
Author(s):  
James A. Turner
Keyword(s):  
Student Satisfaction ◽  
Cash Flow ◽  
Capital Budgeting ◽  
Cash Flows ◽  
Net Income ◽  
Working Capital ◽  
Accrual Accounting ◽  
Operating Cash Flows ◽  
Present Information ◽  
Budgeting Process

Many introductory finance texts present information on the capital budgeting process, including estimation of project cash flows.  Typically, estimation of project cash flows begins with a calculation of net income.  Getting from net income to cash flows requires accounting for non-cash items such as depreciation.  Also important is the effect of changes in net operating working capital on cash flow.  While students readily understand how to account for depreciation when calculating cash flow, they typically have much more difficulty understanding how and why changes in working capital affect cash flows.  This paper develops a teaching example to show exactly how and why changes in net operating working capital affect cash flows.  The example shows how to derive operating cash flows for a proposed project using the accrual accounting method and then shows a cash budget for the same project.  Finally, the example shows that the discrepancy between the cash flows shown in the cash budget and the operating cash flows can be resolved by accounting for changes in working capital.  A survey of students in an MBA managerial finance course indicates student satisfaction with the teaching example and gives evidence that students prefer the teaching example to explanations of the effect of working capital on project cash flows given in the assigned text.

scholarly journals Earnings and cash flow persistence: Case of medium agriculture enterprises in Serbia

2021 ◽  
Vol 68 (1) ◽  
pp. 141-153
Author(s):  
Slavica Stevanović ◽  
Jelena Minović ◽  
Grozdana Marinković
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Cash Flow ◽  
National Economy ◽  
Earnings Quality ◽  
Cash Flows ◽  
Annual Data ◽  
Panel Regression ◽  
Operating Profit ◽  
Operating Cash Flows

This paper examines the earnings and cash flow persistence of selected agriculture Serbian enterprises as a measure of their earnings quality. We study the persistence of income statements and cash flow statement items of medium-sized agriculture enterprises in Serbia. Agriculture is a relevant sector for the national economy and medium-sized enterprises are the main drivers of her economic growth. We use panel regression analysis with annual data over the period from 2010 to 2018. The results of our research indicate that earnings and cash flow-based indicators have different persistence. Analysing accruals and net cash flows of operating activities as determinants of operating profit of analysed enterprises, we conclude that operating profit that represents accruals are more persistent than operating profit backed by net operating cash flows.

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.

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.

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