• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.87-94
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• 2020

The paper aims to investigate the impact of presenting statements of cash flow using the direct method and the indirect method on loan decision by credit officers at Vietnamese banks. The data was collected from 150 credit officers of commercial banks in Vietnam based on the questionnaire about making loan decision when the cash flow statement is presented in different methods, namely, direct and indirect methods. This research uses T-tests to check whether using the direct or indirect method affects the accurate calculation of loan criteria, affects the loan decision by credit officers, and compare these two methods in the aspects of information provision. The research has pointed out that: 1) the direct method helps the calculation of indicators related to loans more accurately; 2) credit officers say that, while the direct method of presenting cash flow statement provides clearer information, the use of either the direct method or the indirect method does not affect the banks' loan decision. Since then, the author recommends that cash flow statements should be provided with information in a direct method to present the information needed for loan decision more accurately so as to improve the quality of cash flow statement.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.37-43
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• 2021

The main objective of this study is to discuss the effect of free cash flow as a moderating variable on managers' decisions as regard earnings management. Companies with free cash flow are expected to refrain from taking opportunistic actions such as earnings management. The research used quantitative methods with sub-group moderating analysis. It is found that there is a significant relationship between past performance and earnings management, where the free cash flow is the moderating variable. The effect of past performance on earnings management is shown to slightly increase as free cash flow is considered. The findings of this study prove that earnings management is a practice that is often done by utilizing the flexibility of accounting recording and recognition mechanisms. Past performance becomes the main variable in encouraging managers to manage earnings by reducing revenue in the current period. This research can also be a reference in explaining managerial behavior and can be a reference to improving ethical human resource capabilities. This research focuses on companies in Indonesia that conduct earnings management by lowering profits as a result of declining past performance and examines aspects of free cash flow that reinforces the conduct of earnings management.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.31 no.4
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• pp.177-187
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• 2008

It is very important to select optimal investment alternative. The common method of economic evaluation is to compare of NPV, FW, AE by MARR, or the rate of return for the cash flow of alternatives. This method is undergoing by assumption that cash flow can be always evaluated by MARR, but the cash flow is not always increased or discounted like MARR. So this paper suggests a model on an economic analysis and evaluation regarding to various cash pattern, that is helpful for the person in the field to use easily.

• Journal of the Korea Institute of Building Construction
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• v.12 no.3
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• pp.257-265
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• 2012

Many construction companies are simultaneously carrying out numerous projects in the housing construction industry. It is essential to accurately forecast the cash flow of a project through optimal process management and resource input in order to manage funds rationally and enhance the competitiveness of a company. Current cash flow forecasting methods offer lower accuracy due to a large gap between the revenue and expenditure element. Expenditure elements depends on the real-time changing actual cost for work performed. This research survey was conducted on the actual state of construction management of K company to investigate the problems of cash flow forecasting. To achieve this, the work process and construction management system were integrated to improve the cost management system of K company. To accurately forecast the cash flow of a project, revenue and expenditure elements were displayed in the total cash flow forecast window. This research is expected to assist in the implementation of a system of cash flow forecasting on housing construction by excluding negative elements of revenue and expenditure.

• Journal of the Korea Institute of Building Construction
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• v.4 no.4
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• pp.135-142
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• 2004

The purpose of this study is to predict remodeling timing of Permanent Rental Housing through historic data and cash flow analysis. For this aim, the study has estimated cash flow of Permanent Rental Housing considering initial construction costs, government supporting fund, rental incomes and maintenance expenses. Based on the expected cash flow analysis, reasonable remodeling timing is predicted for Permanent Rental Housing. The results of this study are as follows: (1) it is analyzed that building a8e of about 27 years is the best time for remodeling because cumulative surplus amounts reach maximum level, (2) it is required that remodeling should be made before 34 years of age roughly because cumulative surplus amounts change into minus from this time.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2012.05a
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• pp.303-305
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• 2012

This paper presents a system called a Cash-flow based Construction Scheduling Optimization (CfSO). The existing CPM is biased on schedule and cost management. For a profitable and successful project management, the cash-flow which occurred actually by contractual conditions should be considered in the project scheduling. Therefore, this study provides a method to estimate the amount of a cash-flow occurred periodically by integrating the terms of contract into scheduling. The proposed methodology is implemented as a system prototype in Microsoft Excel. CfSO helps a site manager as a decision-maker to establish a optimized project scheduling and decide profitable contractual conditions against a construction owner.

• East Asian Economic Review
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• v.23 no.4
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• pp.353-379
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• 2019

This paper aims to determine factors causing the stagnation of Korean firms' fixed investment after the global financial crisis, using panel data for the period of 1999-2016. Fixed investment remained sensitive to cash flow and Tobin's q although their effects decreased after the global financial crisis. A decreasing trend of cash flow and an increase in Tobin's q since the early 2000's imply that the worsening cash flow was a major factor behind the sluggish investment after the crisis. Meanwhile, debt-equity ratio remained significant for non-chaebol affiliated firms, reflecting disparity in access to external financing. Volatility of stock returns also became insignificant after the crisis, casting doubt on the argument that uncertainty was a major factor contributing to the decline of fixed investment. Analysis of financial investment confirmed the significant effect of cash flow, larger than that on financial investment than on fixed investment. In particular, debt repayment and other financial investment, except share repurchase, were sensitive to cash flow. However, the substitution of fixed investment by financial investment is a consequence, rather than a cause of declining fixed investment.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.137-151
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• 2020

Purpose - The purpose of this study is to investigate whether financial analysts' cash flow forecasts mitigate the accrual anomaly. In addition, we examine whether the more accurate analysts' cash flow forecasts are the greater the decline of the accrual anomaly. Design/methodology/approach - Data used in the empirical tests are extracted through KIS-VALUE and FN-GUIDE, and the sample consists of firms listed on Korea Stock Exchange for 7 years from 2005 to 2011. We test the hypotheses using multiple regression analysis and we also estimate the regressions with the decile ranks of the explanatory variables to minimize the influence of outliers. Findings - We have failed to capture evidence that the provision of financial analysts' cash flow forecasts itself reduces the accrual anomaly. However, we find the accrual anomaly to be less severe when financial analysts provide more accurate cash flow forecasts. The findings are consistent in the regression models with the decile ranks as well as in the robustness tests that controlled the accruals quality. Research implications or Originality - This study contributes to the expansion of related studies in the Korea by providing empirical evidence partially that the financial analysts' cash flow forecasts mitigate the accrual anomaly.

• The Journal of the Convergence on Culture Technology
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• v.4 no.1
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• pp.67-73
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• 2018

Financial plight condition firms difficulties accessing external funding, these firms will arrange scarce funds using tax avoidance can be a way of improvement of internal cash flow and internal funds securement. This study is empirical evidence presented the association between free cash flow can be represented for financial condition of firms and using tax avoidance for Kosdaq listed firms. Empirical analysis result, presented plus (+) results the association between free cash flow and tax avoidance. these results are in the previous year free cash flow is large firms purpose of internal cash holdings that increase of tax avoidance in order to minimize of cash outflow are based on tax burden. also interaction effect of free cash flow and debt ratio is presented influence of plus(+) on tax avoidance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.223-234
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• 2021

This study aims to examine whether operating cash flows influence banks' financial stability in Pakistan. The study employed annual panel data collected from annual reports of 20 commercial banks listed on the Pakistan Stock Exchange for the year 2011 to 2019. Free cash flow yield was taken as the dependent variable while cash flow ratio was selected as the independent variable, and net interest margin, income diversification, asset quality, financial leverage, the cost to income ratio, advance net of provisions to total assets ratio, capital ratio, financial performance, breakup value per share and bank size were taken as control variables. The study performed ordinary least square technique, random and fixed effects models, Hausman test, Lagrange multiplier test, descriptive and correlation analysis. Results showed that operating cash flows and net interest margin significantly and positively influenced banks' financial stability while the cost to income ratio and advances net of provisions to total assets ratio significantly and negatively associated with banks' financial stability. To improve financial stability, banks should become more cost-effective and enhance their liquidity levels by lowering lending activities. In the future, it would be useful to compare commercial and investment banks, also Islamic and conventional banks in the same research setting.