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This study investigates the role of free cash flows and (cross-sectional and time-series) price momentum in predicting future stock returns. Past returns and free cash flows each positively predict future stock returns after controlling for the other, suggesting that cash flows and momentum both contain valuable and distinctive information about future stock returns. A strategy of buying past winners with high free cash flows and shorting past losers with low free cash flows significantly outperforms the traditional momentum trading strategy. The enhanced performance is not sensitive to investor sentiment, time variations, or transaction costs. Further analysis shows that the incremental cash flow effects are largely attributable to net distributions to equity/debt holders. Overall, our findings shed light on the role of corporate fundamentals in technical trading strategies. [ABSTRACT FROM AUTHOR]

We examine the association between aggressive tax planning and labor investment efficiency among U.S. firms. Labor is an important input to production that is material to many firms, and prior research suggests that inefficient labor investments can negatively affect future profitability and growth. We provide evidence that firms engaging in aggressive tax planning are associated with deviations from expected labor investments, which is indicative of labor investment inefficiency. We find that our results are concentrated in labor underinvestment, consistent with risks and uncertainties from aggressive tax planning making firms more cautious when investing. Our findings are strongest among firms with greater tax risk, higher labor costs, and weaker corporate governance. Our study contributes to the literature examining tax planning consequences by providing evidence that a tradeoff exists between aggressive tax planning and investments in labor. Therefore, our results suggest that managers should carefully consider the cash flow benefits of tax planning in conjunction with the potential effects of lower labor investments to ensure that the overall long-term effect of the tax strategy is value-increasing. [ABSTRACT FROM AUTHOR]

Outsourcing is an important strategic decision of high-tech firms. However, while the research has extensively studied the implications of outsourcing to high-tech clients, its impact on high-tech vendors remains underexplored. This study empirically estimates the impact of government outsourcing contracts on high-tech vendors. Employing the earnings-return analyses framework, we find that, for high-tech vendors engaged in government outsourcing contracts, the stock market places a higher value on each unit of unexpected earnings compared to other firms. Additionally, this impact becomes stronger for contracts with longer terms, for contracts outsourced by the U.S. government or by countries with better political and economical stability. We obtain causal evidence through difference-in-differences (DID) analyses of high-tech firms' initiations of government contracts. Mechanism analyses uncover two primary drivers behind this impact: increased persistence of future earnings and improved alignment between accrual earnings and cash flows. Overall, our research indicates that when valuing high-tech firms, the stock market incorporates information from supply-chain networks, especially that related to government customers. Our results underscore the importance of obtaining government outsourcing contracts for high-tech firms' managers. Becoming a vendor to the government helps a high-tech firm reduce the uncertainty faced by its outside investors, who in turn value the high-tech firm's earnings to a greater extent. [ABSTRACT FROM AUTHOR]

Restricted stock units (RSUs) are a type of equity compensation that many companies offer to attract top talent and to incentivize their executives to remain employed. RSUs generally have the potential of resulting in the transfer of substantial value to the executive, without a lot of complexity associated with that outcome. To make the most of an executive's RSUs, the financial service professional should make sure that the executive understands how much value they have and should devise a plan for addressing the taxation and cash flow needs following the vesting of the RSUs. [ABSTRACT FROM AUTHOR]

For many financial planners, cash-flow planning is financial planning. Planners must make the effort to fully understand a client's income. This may involve looking at W-2 forms, profit and loss statements, and K-1 tax forms from the client's business. In addition, the planner must identify all the expenses that the client has. We recommend several strategies for monitoring cash-flow planning. [ABSTRACT FROM AUTHOR]

Research in corporate financial reporting identifies two important roles of accounting accruals. First, accruals smooth fluctuations in operating cash flows. Second, accruals allow recognition of losses in an asymmetric timely manner. While these two roles imply different relations between individual accrual components and operating cash flow news, prior research often focuses on the properties of aggregate accruals. We investigate the role of individual accrual components and identify asymmetry in the relation of investment with operating cash flow news as a confounding factor. We show that this investment factor operates through depreciation and amortization accruals, which typically account for the bulk of aggregate accruals. Overall, our article demonstrates the importance of adopting a granular approach to identifying the different roles of individual accrual components. [ABSTRACT FROM AUTHOR]

We identify a novel economic mechanism through which passive ownership positively affects informational efficiency in the cross-section of firms. Passive investors' inelastic demand lowers a firm's cost-of-capital, inducing it to take more risk. The higher cash flow variance, in turn, incentivizes active investors to acquire more precise private information, pushing up price informativeness for firms with high passive ownership. High passive ownership also implies higher stock prices and higher stock-return variances. An increase in the aggregate size of passive investors amplifies these cross-sectional differences. We also document complementarities in firms' real investment and investors' information choices that can cause information crashes. Received May 31, 2020; editorial decision January 4, 2023 by Editor Holger Mueller. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We investigate the effect of scrutiny (e.g. credit ratings, analyst reports, or mandatory disclosures) on the security design problem of a privately informed issuer. We show that scrutiny has important implications for both the form of security designed and the amount of inefficient retention of cash flows. The model predicts that issuers will design informationally sensitive securities (i.e. levered equity) when scrutiny is sufficiently intense. Otherwise, issuers opt for a standard debt contract. Scrutiny increases efficiency by decreasing issuers' reliance on retention to signal quality and, perhaps counterintuitively, decrease price informativeness. [ABSTRACT FROM AUTHOR]

We document that the aggregate hiring rate of publicly traded firms in the U.S. economy negatively predicts stock market returns and long-term cash flows, and positively predicts short-term cash flows. In addition, through a variance decomposition, we show that the time-series variation in the aggregate hiring rate is mainly driven by changes in discount rates and short-term expected cash flows, with no contribution from variation in long-term expected cash flows. We estimate a neoclassical dynamic model with labor market frictions and show that labor adjustment costs and time-varying risk are essential for the model to replicate the empirical patterns. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

In this paper, we consider conditional measures of lead-lag relations between aggregate growth and industry-level cash flow growth in the United States. Our results show that firms in leading industries pay an average annualized return 3.6 |$\%$| higher than that of firms in lagging industries. Using both time-series and cross-sectional tests, we estimate an annual pure timing premium ranging from 1.2 |$\%$| to 1.7 |$\%$|⁠. This finding can be rationalized in a model in which (a) agents price growth news shocks, and (b) leading industries provide valuable resolution of uncertainty about the growth prospects of lagging industries. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

For a firm that cannot raise external funds, cash on hand serves as precautionary saving. We derive a closed-form expression for the target level of cash on hand in the presence of persistent cash flows. Contrary to conventional wisdom, a mean-preserving increase in the volatility of cash flow can decrease this target. Over the set of admissible parameter values, the average impact of volatility on the target is zero. Endogenous selection, reflecting termination of firms that run out of cash, leads to a positive average impact of volatility on the target level of cash, consistent with empirical findings. [ABSTRACT FROM AUTHOR]

We decompose the total value loss around firms' announcements of financial restatements into components arising from investors' revisions in cash flows and discount rates. First, relative to population benchmarks, restatements represent circumstances in which the cash flow component becomes more important in explaining valuations. While we find significant contributions from both sources, with the cash flow component explaining more than 33% of the variation in stock returns surrounding restatement announcements, this component explains only 13% to 22% in comparable non-restating firms. When restatements are caused by underlying financial fraud, the discount rate impact becomes more important, explaining about 88% of return variation. On the contrary, the cash flow impact is relatively larger for firms with higher earnings persistence or restatements associated with errors. Our decomposition of the value loss helps explain returns in the post-announcement period. Firms with a higher relative discount rate impact experience a significant downward stock price drift after the initial announcement-related price decline. For firms with a higher relative cash flow impact, the evidence suggests the initial impact of the restatement announcement is more complete with no subsequent drift pattern. Our findings close gaps in the evidence on financial restatements and extend the literature on the drivers of stock price movements. [ABSTRACT FROM AUTHOR]

The second-hand ship market is one of the main markets of the maritime economy where existing ships are traded, and price volatility is very high. Analyzing the factors that cause price volatility is significant for asset players in the shipping industry. For this reason, this study aims to evaluate the factors affecting the price in the second-hand ship market and to determine the variables that affect the price most in ship valuation. Thus, it is aimed to provide essential insights to market players with the findings obtained. In the study, an application has been made to evaluate the factors affecting the price in the second-hand ship market together and simultaneously. The 25 sub-criteria consisted of Economic Factors, Ship Characteristics, and Buyer and Seller Characteristics main-criteria obtained from the literature were evaluated. The evaluations were carried out using the SWARA technique, one of the MCDM methods. The results provide essential information for ship asset players to hedge their financial risks, manage their cash flows and debts, and make better decisions in the second-hand ship market. [ABSTRACT FROM AUTHOR]

We examine the effect of state corporate income tax rate changes on firms' liquidity management. Using a difference-in-differences design, we find that firms hold more cash when they are experiencing an increase in state corporate income tax rate. More specifically, on average, a 1 percent increase in state corporate income tax rate leads to a 2.51 percent increase in firms' average cash holdings. We also find that the effect is stronger in firms with low and risky cash flows, more growth opportunities, and more financial constraints. We find no evidence of this relationship when the state corporate income tax rate decreases. Overall, these findings suggest that firms conserve more cash to mitigate tax-induced frictions, which is consistent with the precautionary motive of cash holdings. Our paper speaks to policymakers that the increase of state income tax rate has real effects on firms' cash holdings. [ABSTRACT FROM AUTHOR]

In the era of globalization and increasingly intense business competition, companies in various industrial sectors are required to manage their resources efficiently to achieve desired financial goals. The objective of a company is to maximize profits for its survival. Sales are one of the main operational activities of a company and a primary source of revenue. The fluctuating nature of stock prices requires an investor to understand the factors influencing their changes. Factors affecting stock price changes include financial statements and financial ratios.This study uses secondary data, namely the financial statements of Consumer Goods Industry companies in the Food and Beverages sub-sector listed on the Indonesia Stock Exchange (IDX) from 2020-2023. The sampling technique used is purposive sampling, resulting in a total sample of 14 companies. The data analysis technique used in this study is multiple linear regression analysis, preceded by classical assumption tests including normality test, multicollinearity test, heteroscedasticity test, and autocorrelation test. The results of the model fit test show that cash flow and working capital are suitable as explanatory variables for profitability.The hypothesis testing results indicate that cash flow has a positive but not significant effect on profitability, meaning that if cash flow increases, profitability tends to increase. Working capital has a negative but not significant effect on profitability, meaning that if working capital decreases, profitability will increase. The market stock price significantly moderates the relationship between cash flow and profitability, but it does not significantly moderate the relationship between working capital and profitability. [ABSTRACT FROM AUTHOR]

This article introduces a panel threshold model with covariate-dependent and time-varying thresholds and unobserved individual-specific threshold effects (PTCDI). We develop methods for estimation and inference for threshold parameters in the proposed PTCDI model by employing the correlated random effects (CRE) device. We also suggest test statistics for linearity, threshold constancy, unobserved individual-specific threshold effects, and for determining the number of thresholds. We derive the asymptotic properties of the proposed estimator in the small-threshold-effect framework and establish the limiting distributions of the suggested test statistics. We also investigate the extension to dynamic panels and show that both the static and dynamic models can be handled uniformly in the CRE framework. Monte Carlo simulation results indicate that the estimation, inference, and testing procedures have the desired performance in finite samples. The model is illustrated with two empirical applications to the relationship between cash flow and investment and the nexus between inflation and economic growth. [ABSTRACT FROM AUTHOR]

This paper analyses whether using analogies to integrate knowledge from other scientific areas increases the level of accounting knowledge. We defined two sets of analogies, one between the physical states of water and the economic and cash flows, and another between the concepts of stock, flow and feedback that were taken from the System Dynamics field and the financial statements. An experimental study was conducted with students from a European university, who participated in an accounting revision class. The grades of the students who attended the revision class using the analogies were higher than of those who did not attend this class. These findings reinforce the power of analogies as a useful tool and validate the benefits of integrating knowledge from other areas in accounting education. [ABSTRACT FROM AUTHOR]

Copyright of Financial & Business Studies Journal / Maǧallaẗ Al-Dirāsāt Al-Māliyyaẗ wa Al-Tiǧāriyyaẗ is the property of Beni Suef University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

How do companies finance their investments? We examine the financing of investments according to firms' listing status, their size, and the nature of the investments. We show that private firms rely more on bank credit than public firms and less on financial debt, equity, and cash flow. We also show that the contribution of financial debt and equity increases with firm size. Considering both dimensions, we always find an increasing contribution of other financial debt and equity with firm size in both populations. Therefore, even in a bank-based economy, equity plays an important role in the investment of larger private firms. (JEL D25, E22, G21, G30, G31, G32) [ABSTRACT FROM AUTHOR]

Purpose: This study aims to facilitate the development of a better understanding of how controlling shareholders respond to the mandatory system of corporate governance rating (CGR) for all firms listed on Taiwanese stock markets and the incentives of controllers to apply corporate governance best practices. Design/methodology/approach: Using CGR data for all Taiwanese listed firms from 2014 to 2020, this study examines whether controlling shareholders determine a firm's CGR. Findings: Single-family-controlled firms have the lowest CGRs, and management-controlled firms have the highest ratings. Blockholder-controlled firms are more likely to have top 20% ratings than single-family-controlled firms and bottom 20% ratings than single-family and management-controlled firms. All three categories of firms have unfavorable (favorable) ratings because of substitute governance effects (signaling effects). Originality/value: Management-controlled firms, in which agency problems refer to principal-agent conflicts, are more likely to have good ratings than single-family controlled firms, in which agency problems refer to principal-principal conflicts. Blockholder-controlled firms have extreme ratings, suggesting that multiple large shareholders develop corporate governance practices consistent with their best interests to increase firm value or expropriate wealth. Low cash flow rights and high control-ownership divergence lead firms to adopt additional governance arrangement(s) to make shareholders trust firms with capital and signal to shareholders that they can trust them with their capital. [ABSTRACT FROM AUTHOR]

This study constructs a Chinese lottery index (LI) based on six popular lottery preference variables by using the partial least squares method and examines the relationship between the LI and future stock market returns during the period from January 2000 to December 2021. We find that the LI can negatively predict stock market excess returns in‐sample and out‐of‐sample. In addition, the LI can generate a large economic gain for a mean–variance investor. Finally, the predictive sources of the LI stem from a cash flow channel and can be explained by the positive volume–volatility relationship and investor attention. [ABSTRACT FROM AUTHOR]

This study examines how a stock security's cash flow duration impacts stock price reactions at earnings announcements. We find that stock price reactions are positively associated with cash flow duration, especially when earnings surprises are negative. Our results imply that long duration creates a leverage effect that magnifies the price reaction around earnings announcements. We further show that the greater stock price reaction for firms with longer cash flow duration could be caused by less accurate analyst forecasts and short-sales constraints. Finally, we find that the effect of cash flow duration generally increases over time, being more notable during financial crisis and less notable when investor sentiment is high. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between product life cycle and book-to-market effect on cross-sectional stock returns. While previous papers suggest that the book-to-market effect is related to a firm's market value and fundamental value, this paper examines the product life cycle, which directly affects future cash flows. We find that the book-to-market effect is stronger for firms with a long product life cycle, which is consistent with the mispricing story in explaining the book-to-market effect. We further find that the role of product life cycle is more critical for firms with high investor limited attention, and that the product life cycle in part explains intangible returns. [ABSTRACT FROM AUTHOR]

Utilizing firms in the S&P 500, we study whether greater transparency in the reporting of other comprehensive income (OCI) items, as mandated by ASU 2011-05, resulted in a reduction in information asymmetry, a change in the value relevance of this information, or a change in hedging practice. Our results show that while transparent reporting reduced information asymmetry, firms that engage in cash flow hedging do have greater information asymmetry than their counterparts that do not hedge. We find evidence that investors penalize firm value for greater volatility of OCI relative to net income volatility when reported transparently. When permitted, managers were able to mitigate the negative impact by reporting OCI only in the Statement of Shareholders' Equity. We conclude that managers' concerns regarding potential confusion surrounding OCI volatility following more prominent reporting led to changes in hedging behavior. After transparent reporting, we find a reduced likelihood of foreign currency cash flow (FXCF) hedges and a reduced level of FXCF hedging among firms experiencing the greatest volatility of unrealized hedging gains and losses. [ABSTRACT FROM AUTHOR]

This paper discusses several issues that were raised by the International Accounting Standards Board (IASB) in their request for information for the post-implementation review (PIR) of the International Financial Reporting Standard (IFRS) 9: Financial instruments – Classification and Measurement. In doing so, we first review the related academic literature and present empirical evidence on the post-adoption impact of IFRS 9. We then discuss conceptual issues associated with the business model and cash flow characteristics assessment in IFRS 9, as well as issues associated with the presentation of fair value changes in other comprehensive income (OCI) and modifications to contractual cash flows. Finally, we identify gaps in the literature and provide suggestions for future research that can help inform accounting standard setters. [ABSTRACT FROM AUTHOR]

Despite the known benefits of precision agriculture, the adoption is challenging due to the cost of investment and the farm sizes. Therefore, profitability is an important aspect to consider. This study aimed to evaluate the net returns, profitability, and investment efficiencies of PA by different economic farm sizes. The study was based on data retrieved from the Farm Accountancy Data Network (FADN) and Eurostat (year 2021). The study examined four countries (Poland, Germany, France, and Romania) under field crop farming using an investment cost of EUR 35,941–EUR 71,883 and a 20% and 15% reduction in the cost of crop protection and fertilizer usage, respectively, without compromising productivity. There is a positive relationship between the adoption of PA and farm returns for larger-scale farms. The result of the profitability and analysis of investment efficiency using Net Present Value (NPV) showed a positive value for economic farm sizes of EUR 100,000 and above. Hence, it is not economically advisable that all farmers use PA technologies with the hope that they will be profitable but with public support (subsidies) more farms will be able to use PA and be profitable. This is also an opportunity to meet the goals of the European Union Green Deal of minimizing emissions that cause climate change. [ABSTRACT FROM AUTHOR]

This paper presents a computationally tractable optimization model for cashflow-driven investment where the aim is to find asset portfolios whose future payouts cover given liability payments as well as possible. While current industry solutions are largely based on expected future cash flows, we use a stochastic optimization model that seeks portfolios that give the best possible match across time as well as scenarios. Cashflow matching across scenarios is controlled by risk aversion while the timing is driven by illiquidity of money markets. When illiquidity increases, the hedging strategy quickly shifts towards portfolios suggested by deterministic models, but significant uncertainty remains. The model can incorporate hundreds of quoted instruments in the construction of optimal hedging strategies. The hedging strategies are able to employ any statistical connections between the liabilities and publicly quoted assets. The model is solved with simple Monte Carlo approximations and off-the-shelf convex optimization software. Besides optimal hedging strategies, we find the least cost of hedging which provides a market-consistent valuation based on the current quotes and the liquidity factors as well as the views and risk preferences of the investor/regulator. The approach is illustrated by pricing and hedging defined benefit pension liabilities which depend on uncertain longevity developments and the consumer price index. The hedging strategies are constructed from 128 publicly quoted instruments including index-linked bonds and equities. We find that the optimized hedging strategies achieve lower risk at a lower cost than the strategies obtained by matching expected cashflows. The hedging-based liability valuations are robust with respect to model parameters and the additional risk reduction achieved by optimization does not add much to the overall hedging cost. [ABSTRACT FROM AUTHOR]

The present study addresses the important demographic of director age in relation to the performance of the constituent firms of Fintech-focused Exchange Traded Funds (ETFs). While private Fintech boards accommodate generally young officers, regulatory and market forces contribute to notable shifts in the board age composition of seasoned, publicly listed Fintech entities. Within the fast-moving and evolving context of Fintech, we assess how board age composition impacts on such firms' return-on-assets, sales-on-assets, cash flow proficiencies, and market-to-book value. Our study findings suggest age diversity exhibits a significant inverse relation with the first three of these performance measures. Fintech entities with lower board age dispersion achieve stronger performance in the key metrics. Such a finding holds in cross-sectional terms (i.e. without material change in the average age of board members across the study period). Within our study context, we also assess the age gap between non-executive directors (NEDs) and executive officers (EDs). For most sample firms, average NED age markedly exceeds ED age. Through a battery of tests, we demonstrate more seasoned (i.e. less young) EDs support Fintech firm performance. The presence of more experienced EDs serves in narrowing the age gap with older and more seasoned NEDs. [ABSTRACT FROM AUTHOR]

This paper involves a centralised resource-constrained multiproject scheduling problem with four different payment patterns. In the problem, renewable resources can be shared by all the individual projects, and the task is to arrange activities' start times to minimise the contractor's maximal cash flow gap. First, based on the problem formulation, we construct an optimisation model for the problem, and through the analysis of the constructed model, we propose some properties of the problem. Then, due to the NP-hardness of the problem, we develop a simulated annealing algorithm and, according to the proposed properties, design a measure to enhance its searching efficiency of the algorithm. Finally, we conduct a computational experiment on an existing dataset to evaluate the performance of the developed algorithm and analyse the effects of key parameters on the objective function value. From the research results, we draw the following conclusions: The improved simulated annealing algorithm is the most promising algorithm for solving the problem being studied, and the effect of the improvement measure varies as the project parameters change. The maximal cash flow gap increases along with the network complexity, modified average utilisation factor of renewable resources, or discount rate per period while it decreases with the increase in the normalised average resource loading factor, variance in modified average utilisation factors, number of milestone activities, advance payment proportion, progress payment proportion, or deadline of projects. Among the four payment patterns, the expense-based and milestone activity-based payment patterns may be the best and worst, respectively, for the contractor to reduce the maximal cash flow gap. [ABSTRACT FROM AUTHOR]

Standard financial theories assume that investment and financing decisions are intertwined. Investment decisions involve selecting assets that generate positive cash flows and maximize shareholder value, while financing decisions involve identifying the optimal mix of debt and equity financing to fund these investments. The main objective of this paper is to analyze the interdependence of assets and liabilities in a sample of Colombian manufacturing firms with varying degrees of roundaboutness (capital-intensive nature). This study employs canonical correlation analysis to determine the interaction between balance sheet components. Subsequently, a threshold regression model is employed to evaluate the influence of financial indicators on the financial performance of firms with heterogeneous capital intensity. The findings reveal that low-capital intensity firms match the maturity structure of assets and liabilities. In firms with low roundaboutness there is a significant relation between throughput, working capital turnover and the proportion of capital expenditure to operating cash flow with ROIC. However, this relationship becomes non-significant at high levels of indebtedness. Conversely, capital-intensive firms exhibit a mismatch between asset and liability maturities, relying on shareholders' funds to finance longterm assets and inventories. In this group of companies, throughput is positively associated with ROIC regardless of the level of debt, whereas the relationship between working capital turnover and ROIC is not significant until a certain debt threshold is exceeded. The impact of the capital expenditure to operating cash flow ratio on ROIC varies depending on debt levels. Companies with high roundaboutness that exceeds a debt threshold experience a negative impact. [ABSTRACT FROM AUTHOR]

With systematic reinvestment of the cash flows generated by a bond portfolio, investors can modify their portfolios' exposure to different risk factors. They can also use this mechanism to design a flexible, smooth, yet low-cost strategy—a "glidepath"—to direct their portfolios toward their medium- and long-term objectives. Focusing on climate objectives, we introduce net-zero glidepaths (NZGps) and show how bondholders can devise NZGp portfolios that are consistent with their security-selection processes and compliant with their financial mandates. We present possible solutions for NZGps for two of the largest groups of corporate-bond investors: buy-and-hold and index-following investors. The simulated NZGp portfolios achieved their interim net-zero emission targets with a relatively small impact on their performance. They also remained compliant with the financial constraints, including duration and income targets, credit allocations, and issuer and sector concentrations. [ABSTRACT FROM AUTHOR]

The rapid development of many industries in the world has resulted in environmental damage due to excessive use and exploitation of natural resources. As a result, there is a decline in environmental quality resulting in global warming, ozone depletion, pollution, and acid rain. The impact of environmental conventions in the world Montreal Convention, Kyoto Protocol, Ban on the Use of Certain Hazardous Materials and increasing consumer environmentalism can change the context of competition in industries around the world. This study aims to examine the effect of Green Intellectual Capital, CEO Characteristic, Free Cash Flow on Prudence moderated by Environmental Performance. This study took the research population in the energy sector companies listed on the Indonesia Stock Exchange for the period 2019-2023. The type of data used in this study is secondary data in the form of financial reports of companies that are used as samples. The research method used in this study is a quantitative research method. The sample was selected using the purposive sampling method. For hypothesis testing, this study uses multiple linear regression analysis. Based on the results of this study, it shows that Green Intellectual Capital, Busy Director, and Free Cash Flow have an effect on prudence but CEO Tenure has no effect on Prudence. Environmental Performance strengthens the influence of Green Intellectual Capital, Busy Director, and Free Cash Flow on prudence and Environmental Performance strengthens the influence of CEO Tenure on prudence [ABSTRACT FROM AUTHOR]

Copyright of Journal of Accounting & Finance Management (JAFM). is the property of Dinasti Publisher and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study aims to analyze the influence of private consumption, private investment, and foreign direct investment on the economic growth of Indonesia using the cash flow accounting approach. A quantitative approach was employed, utilizing secondary data from various official sources. The analysis indicates that private consumption significantly affects economic growth, whereas private investment shows no significant influence. However, foreign direct investment has a proven significant positive impact on Indonesia's economic growth. These findings underscore the importance of private consumption and foreign investment in driving national economic growth, while highlighting the need for a better understanding of the factors influencing private investment to enhance its contribution to economic growth. [ABSTRACT FROM AUTHOR]

This study examines the effects of non-additivity valuations on cash flows and sales growth by using the Choquet fuzzy approach as a pooled non-additive integral. The study targets 62 parent companies with 322 subsidiaries in the Tehran stock market from 2011 to 2019. The study divides firms' assets into four categories (inventories, receivables, fixed, and long-term investments). It uses the Choquet integral's properties to determine the firms' total non-additivity values. The Choquet integral approach used in this study considers the synergy of a set's componential factors in different measurements by considering and implementing the weights and coefficients of the elements. The results indicate that while the market valuation of companies (based on non-additivity valuations) has no significant correlation with their operating cash flows, it has a positive correlation with their sales growth, which could be attributed to the synergy created by the business combination of the parent companies with their subsidiaries. Moreover, the findings show a significant correlation between sales growth and the market price-to-book ratio as a simple approach to measuring a company's performance. However, the results suggest that non-additivity valuations offer a better estimation in measuring the efficiency of companies than market price-to-book ratio-based approaches. Indeed, the valuations of companies are determined based on their abilities in using their resources compared to similar companies in the same industry when they use non-additivity valuations. These findings are expected to be very helpful for potential investors and shareholders. [ABSTRACT FROM AUTHOR]

This paper seeks to evaluate proficient perceptions within business assessments in South Africa, where such perceptions play a significant role in the evaluation process, encompassing the selection of standards and the establishment of evaluation frameworks. The evolving economy of South Africa is marked by fluctuating economic circumstances and potential growth, compounded by inadequate benchmarks and a scarcity of relevant market information. Forecasting growth rates are further complicated by macroeconomic uncertainties, leading to a reliance on proficient perceptions when industry-specific guidelines and easily comprehensible alternatives to the Capital Asset Pricing Model (CAPM) are lacking. A mixed-methods strategy is employed in this study, combining quantitative and qualitative data, along with surveys set benchmarks for business assessments. The outcomes reveal that modifications based on judgment are necessary for variables like organizational size due to the absence of CAPM alternatives. This study stresses the importance of translating scholarly discoveries into practical applications, emphasizing the challenges and uncertainties that call for proficient perceptions in business evaluations. It advances the comprehension of these obstacles and proposes that further exploring macroeconomic variables and industry-specific guidelines could offer valuable insights. The study suggests that biases in evaluations, influenced by client interests, present a promising area for future inquiry. [ABSTRACT FROM AUTHOR]

Through a comprehensive analysis of United States public firms, we explore the implications of mergers and acquisitions within the Financial Technology (Fintech) sector on a company's value and capital structure. The financial statements of financial institutions engaged in Fintech mergers and acquisitions differ significantly from those of other nonfinancial institutions involved in various high‐technology acquisitions. Our results indicate that when a financial company acquires a Fintech firm, it enhances the acquirer's overall firm value and cash holdings. Furthermore, these mergers and acquisitions within the high‐technology sector exert distinct influences on a company's leverage and cash flow. [ABSTRACT FROM AUTHOR]

This study examines whether managerial overconfidence coupled with self‐attribution bias distorts the investment decisions of firms. To this end, we investigate the impact of overconfidence on asymmetric investment cash flow sensitivity (ICS). We find that managerial overconfidence affects ICS in a downward‐sticky direction, which is reinforced by overconfidence coupled with managerial self‐attribution. The results for both unconstrained and constrained firms are qualitatively consistent with those for the overall sample; however, the constrained subsample provides slightly weaker results. Thus, our findings indicate that managerial overconfidence and self‐attribution to recent successes may induce managers to make excessive investment commitments. [ABSTRACT FROM AUTHOR]

The article discusses two currently relevant concepts such as sustainable development and sustainable growth. By analyzing the sustainable growth factors of 48 ESG-oriented listed Chinese companies for the period 2020–2022, the authors have proved that following the sustainable development concept can ensure the sustainable growth of companies’ performance. ESG- oriented companies show an increase in the level of generated profits and profitability, as well as a decrease in the debt-equity ratio, which positively characterizes their performance. Excess of actual growth of such companies over sustainable growth has been revealed, which does not lead to negative consequences of the activity for the analyzed period, and also does not increase the risks associated with the need to increase debt capital to ensure the identified growth. The study concludes that it is necessary to develop a new toolkit or integrate the two concepts considered to ensure the ability of companies to achieve their sustainability goals without compromising fundamental financial performance. The study results can be used by companies that are already following the sustainable development concept, as well as by those ones that are only at the initial stage of developing and implementing ESG indicators in their operations, by investors when selecting an investment target and by academics in the course of research devoted to the topic of sustainable development and sustainable growth.

The components of free cash flow and a firm’s capital structure affect the value of the firm. A firm with efficient cash management and optimum capital structure tends to have a better firm value. The current study examines the effect of capital structure and free cash flow on energy firms’ efficiency in Saudi Arabia. The data required for analysis were collected from a sample of seven energy companies from 2014 through 2022. The study used Data Envelopment Analysis to measure the efficiency of energy firms. Further, the simple regression and Generalized Linear Model were used to estimate the results. The study reports an average efficiency score of 1.13 for the energy companies, showing an efficiency increase. The results of simple regression are consistent with the results of the Generalized Linear Model. The study findings demonstrate that the association of firms’ capital structure is positive and significant (with a coefficient of 41.60, significant at a p-value of 0.01) to the efficiency of Saudi Arabian energy firms. Further, current research results indicate that firms’ free cash flows negatively affect the efficiency (with a coefficient of –0.79 and insignificant) of Saudi Arabian energy firms with no evidence. Therefore, the study accepts the association of free cash flow and firms’ efficiency as positive and rejects the alternative hypothesis that there is a negative association between free cash flow and efficiency in Saudi Arabian energy firms. AcknowledgmentThe researcher extends appreciation to Prince Sattam Bin Abdulaziz University for funding this research through the project number 2023/02/25856.

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This paper examines how employee earnings respond to a one-time cash flow shock in the form of a government R&D grant. In a regression discontinuity design, we find that the grant immediately increases average annual employee-level earnings by 2.9 |$\%$|⁠. This benefit accrues only to incumbent employees and rises with job tenure. The grant also affects firm growth, but the initial wage patterns do not appear to reflect growth or productivity. Instead, the evidence supports implicit equity financing within the firm, where employees initially accept lower wages from financially constrained firms and earn more when the firm has ability to pay. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]