We examine investment behavior when firms face costs in the access to external funds. We find that despite the existence of liquidity constraints, standard investment regressions predict that cash flow is an important determinant of investment only if one ignores q. Conversely, we also obtain significant cash flow effects even in the absence of financial frictions. These findings provide suppor...

Companies must keep track of their financial health and performance in order to meet objectives. Financial statements are used examine a company's performance. Analyzing cash flow figures can be evaluate This is descriptive study that employs quantitative approaches. The data secondary from PT Astra International Tbk's annual report the form reports. Cash ratio analysis was utilized as an analy...

Discounted cash flow analysis provides a means of relating the magnitude of expected future cash profits to the magnitude of the initial cash investment required to purchase an asset or to develop it for commercial production. The objectives of discounted cash flow analysis are to determine: < The net present value of a stream of expected future cash revenues and expenditures. < The rate of ret...

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a r t i c l e i n f o In this study, the advanced panel threshold regression model was used to test whether a marginal threshold value representing optimal financial decisions exists respective to the holding ratio of free cash flow, the debt ratio, and the dividend payout ratio determined by the U.S. life and property–casualty insurance industry. The results indicated that an optimal financial...

This paper extends the marketed asset disclaimer approach for real option valuation. In sharp contrast to the dominant real option valuation that assumes a stochastic process for an investment’s capital value, this paper demonstrates the valuation of a real option assuming that cash flow follows a stochastic process. We show that this method is at least equally effective and sometimes more intu...

The primary objective of this paper is to evaluate the association between market value and cash flow ratio, and to understand how economic instability alters it. Because this relationship is cross-temporal and may change if other financial indicators are considered, we model this relationship via multiple functional linear regression. We conclude from our multiple sectors study that market val...

Results: The analysis finds that cash flow sensitivity is a valid measure of financial constraints in the Indian manufacturing sector. Results according to splitting criteria found that investment decisions of standalone firms are more sensitive to cash flow than group affiliated firms. Further, splitting the firms according to market capitalization and tangible net worth reveals a higher degre...

Across the United States, there has been an increased demand for municipalities to manage taxpayer’s funds and meet the citizens’ needs. This paper describes how a county in New York State effectively implemented a public-private interface model to outsource management of the county’s landfill to a private waste management corporation as a strategic initiative to control the municipality’s incr...