..., the sensitivity of investment to internal cash flows (Fazzari et al., 1988, 2000; Hubbard, 1999; Love, 2003). Findings Financing constraints tend to be higher for firms with foreign currency debt exposure compared to other firms. Financing constraints are higher prior to new foreign currency...

...Marwa Samet; Anis Jarboui Purpose The purpose of this paper is to document the relation between investment-cash flow sensitivity and a firm’s engagement in corporate social responsibility (CSR) activities in European context. Specifically, this paper aims to empirically examine how CSR moderates...

... that is insufficient to generate the stream of future incomes. Kierulff (2008) mentions that for a project with a risk higher than the firm’s current business operations, the cash flows should be discounted at a risk-adjusted rate higher than its current cost of capital. This implies a reinvestment rate...

...Dr Monzurul Hoque; Monzurul Hoque; KC Rakow Purpose – Two stylized facts emerge from cash flow literature. One explores the link between free cash flow (FCF) to firm value (Jensen, 1986) and establishes that FCF increases firm value. The other posits FCF may be value decreasing as firms tend...

...Monzurul Hoque; Shyam B. Bhandari; Rajesh Iyer Purpose Business failures during the economic recession of 2008‐2010 years were unusually high in the USA. The purpose of this paper is to build a new model to predict business failure, using mostly cash flow statement based measures as predictor...

...Mussie Teclezion Purpose The purpose of this paper is to examine the impact of the two diversification strategies on firms' propensity to save cash out of cash flow. Design/methodology/approach The author examines the quarterly data of Compustat's active and research firms from the first...

...Tony Chieh‐Tse Hou Purpose The purpose of this paper is to investigate whether mutual fund investors can make effective cash flow timing decisions and examine the sensitivity of these decisions to past fund performance using cash flow data at the individual fund level. Design/methodology...

... the impact of dilution on reported earnings. Design/methodology/approach The authors employ adjusted discretionary accruals from cash flow statements, normalized by the average common equity, in the multivariate tests. Findings There is evidence that SEO‐year discretionary accruals are the highest...

... to refinancing and rising housing prices by discrete‐time, no‐arbitrage pricing theory, making an association between prepayment behavior and cash flow patterns. Design/methodology/approach The structure, rationality and potential for practical use of our model is demonstrated by valuing an MBS via Monte...

...Monzural Hoque; John Consler; Greg M. Lepak; Susan F. Havranek Purpose The purpose of this paper is to compare the relative power of operating cash flow and earnings in the prediction of dividends. Design/methodology/approach A linear mixed effects model is used in terms of selected model fit...

...Richard Fairchild Purpose Scholars have examined the importance of a firm's dividend policy through two competing paradigms: the signalling hypothesis and the free cash‐flow hypothesis. It has been argued that our understanding of dividend policy is hindered by the lack of a model that integrates...

...Nina T. Dorata; Charles A. Barragato; Ariel Markelevich Purpose The paper aims to examine earnings quality during the post‐acquisition period. Design/methodology/approach The paper defines earnings quality as an earnings stream more closely associated with future cash flows from operations...

...Carlo Alberto Magni; Stefano Malagoli; Pablo Fernández Purpose The aim of this paper is to answer the question: Do discounted cash flows valuation methods provide always the same value? Design/methodology/approach This paper is a summarized compendium of ten methods including: free cash flow...

... derives and tests a set of hypotheses pertaining to the impact of shareholder control concentration on the firms’ payout ratios[4]. We argue that the controlling shareholders trade off the agency problems of free cash flow against the risk of underinvestment, and try to enforce payout policies...

...Ioannis T. Lazaridis; Dimitrios V. Kousenidis; Christos I. Negakis; Iordanis N. Floropoulos Purpose – To review the disclosure requirements for cash flow reporting in Greece and the willingness of Greek companies to voluntarily disclose cash flow information. Design/methodology/approach...

...Ioannis T. Lazaridis; Dimitrios V. Kousenidis Purpose – This paper reports an attempt to design a free cash flow version of the cash flow statement. In specific, the paper relates the comprehensive income concept to the definition of free cash flows and shows how free cash flows and residual...

... emphasis to investigate the type, size and percentage of total capital expenditures detailed cash flow estimates; cash flow estimation practices and forecasting errors experience in the businesses in Greece and Cyprus. Design/methodology/approach – The investigation was conducted by the distribution...

...Leonie Jooste Purpose The purpose of this paper is to compare companies in a developing country with those of a first‐world country. For this purpose South African (SA) companies in the chemical, food and electronic industries are to be evaluated on the hand of cash flow ratios and compared...

...Divesh S. Sharma Provides a comprehensive, critical review of failure prediction with cash flow information since Beaver (1966); and tabulates the methods and cash flow variables used, and the results produced. Describes the literature as “inconsistent and inconclusive” and discusses possible...

...Stewart Jones Outlines Australia’s adoption of the direct method of cash flow reporting and presents a survey of 83 loan officers and 76 financial analysts to assess its decision relevance compared with traditional financial statements for commercial loan and investment decisions. Finds both groups...