The Valuation of Corporate R&D Expenditures: Evidence from Investment Opportunities and Free Cash Flow

1996 ◽  
Vol 25 (1) ◽  
pp. 105 ◽  
Author(s):  
Samuel H. Szewczyk ◽  
George P. Tsetsekos ◽  
Zaher Zantout
Keyword(s):  
Cash Flow ◽  
Free Cash Flow ◽  
Investment Opportunities

scholarly journals DETERMINAN EARNING MANAGEMENT DAN PENGARUHNYA TERHADAP NILAI PERUSAHAAN (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI Periode 2017-2018)

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Derwin Juan Sagrim ◽  
Syaikhul Falah ◽  
Bill J.C Pangayow
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Multiple Regression Model ◽  
Free Cash Flow ◽  
Earning Management ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Investment Opportunity Set ◽  
Investment Opportunities

This research has aim to examine the influence of investment opportunities set, board independence, and free cash flow toward firm value with earning management as the intervening variable in manufacturing companies listed on Indonesian Stock Exchange for period 2017 to 2018. This study used a sample of 43 companies with 6 years’ time period. The method of analysis is multiple regression model with further done with path analysis using SPSS 23. These results indicate that investment opportunities set and free cash flow have a significant direct effect on the value of the firm, while investment opportunity set and board independence have the indirect effect. Investment opportunities set, board independence, free cash flow and earning management simultaneously affect the firm value with adjusted R- squared 55.3%. Overall this study indicates that earning management has important role as the intervening variable betweeninvestment opportunities set, board independence & free cash flow relating to firm value.

Free Cash Flow as a Determinant of Performance and Stock Price Movement in Multinational Energy Companies

2016 ◽  
Vol 3 (1) ◽  
pp. 11-29 ◽  
Author(s):  
Ahmed Alalawi ◽  
Gagan Kukreja ◽  
Keshav Gupta
Keyword(s):  
Cash Flow ◽  
Stock Price ◽  
Free Cash Flow ◽  
Share Price ◽  
Positive Relation ◽  
Investment Opportunity ◽  
Price Movement ◽  
Investment Opportunities ◽  
High Return ◽  
Energy Companies

We used the Free Cash Flow (FCF) formula to test and determine the performance of these firms, along with testing the correlation with price movement. Previous Studies showed that Free Cash flow has positive correlation with taking investment opportunities, while negative Free Cash flow represent distressed period for the firm. Questions addressed in the article is (1) whether FCF can determine the energy firm’s performance and stock price movement, (2) whether high FCF triggers investing in high return investments, and (3) whether low or negative FCF leads to financially distressed period. The results are consistent with high Free Cash flow will result in greater investment opportunity while low or negative Free Cash flow will result in distressed period for the firm. In addition, the results showed positive relation between Free Cash flow and share price movement.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PAY OUT POLICY PADA PERUSAHAAN PUBLIK THAILAND

2019 ◽  
Vol 5 (2) ◽  
pp. 57-65
Author(s):  
Ditha Hena Savira ◽  
Agustini Hamid
Keyword(s):  
Life Cycle ◽  
Cash Flow ◽  
Growth Stage ◽  
Free Cash Flow ◽  
Mature Stage ◽  
Public Companies ◽  
The Public ◽  
Panel Data Regression ◽  
Investment Opportunities ◽  
High Investment

We investigate the relationship between Free Cash Flow, Life Cycle and Dividend pay out policy in the Thailand Capital Market. Using panel data regression, we find life cycle and profitability negatively affect the pay out policy. While free cash flow, leverage, firm size, GDP and inflation do not have any impact on pay out policy. In line with DeAngelo, dividends tend to follow the pattern of the company’s life cycle. Companies that are in the mature stage are more likely to pay dividends because at this stage the company has a large amount of profits and low investment opportunities. While companies that are still in the growth stage (growth) are more likely to not pay dividends because at this stage the company has a high investment opportunities, nevertheless they have limited funding. As found in many emerging countries, the Public Companies in Thailand are mostly in growth stage, thus no wonder that profits are used to finance the company’s internal needs

scholarly journals The impact of pre-merger earnings management on non-cash acquisition premia: Evidence from the European market for corporate control

2015 ◽  
Vol 12 (4) ◽  
pp. 587-601 ◽  
Author(s):  
Malek Alsharairi ◽  
Emma L. Black ◽  
Christoph Hofer
Keyword(s):  
Mergers And Acquisitions ◽  
Earnings Management ◽  
Information Asymmetry ◽  
Cash Flow ◽  
Corporate Control ◽  
Free Cash Flow ◽  
Market For Corporate Control ◽  
Management Procedure ◽  
Investment Opportunities ◽  
The Impact

Using 1320 European mergers and acquisitions (M&As) completed between 2003 and 2012, this paper investigates patterns of earnings management and the implications for non-cash acquisition premia considering both the form of payment and the target firm’s listing status. The empirical evidence documented in this study suggests that management teams engage in pre-merger upward earnings management and that it is more evident for private rather than for publicly listed targets in order to compensate for the higher information asymmetry. This earnings management procedure leads to higher takeover premia even after controlling for variables such as the acquirer’s internal investment opportunities, profitability or available free cash flow.

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