Market Response to Product-Strategy and Capital-Expenditure Announcements in Singapore: Investment Opportunities and Free Cash Flow

1997 ◽  
Vol 26 (3) ◽  
pp. 82 ◽  
Author(s):  
Sheng-Syan Chen ◽  
Kim Wai Ho
Keyword(s):  
Cash Flow ◽  
Capital Expenditure ◽  
Free Cash Flow ◽  
Market Response ◽  
Product Strategy ◽  
Investment Opportunities

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.

scholarly journals ANALISIS RASIO ARUS KAS UNTUK MENGUKUR KINERJA KEUANGAN PADA PT KALBE FARMA Tbk.

2018 ◽  
Author(s):  
Meldawati ◽  
Febryandhie Ananda
Keyword(s):  
Cash Flow ◽  
Capital Expenditure ◽  
Secondary Data ◽  
Analytical Techniques ◽  
Cash Flows ◽  
Position Statement ◽  
Free Cash Flow ◽  
Coverage Ratio ◽  
Income Statement ◽  
Statement Of Cash Flows

This study aims to determine how the use of analytical techniques in the current ratios measure the financial performance of PT Kalbe Farma Tbk. In this study the authors use secondary data from financial statements of PT Kalbe Farma Tbk for 5 years (2008-2012). The analytical method used is a form where the ratio of the value in the statement of financial position, statement of comprehensive income, statement of changes in equity and statement of cash flows into the simplified ratios. Data were analyzed using 8 cash flow ratio is the ratio of operating cash flow, cash flow coverage ratio, interest coverage ratio of the cash, the cash coverage ratio of current liabilities, capital expenditure ratio, the ratio of total debt, the ratio of net cash flow and free cash flow adequacy ratio. The results of this study indicate each cash flow ratios from 2008 to 2012 average ratio produced tends to be low and has decreased every year

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI INVESTMENT OPPORTUNITY SET TERHADAP KEBIJAKAN HUTANG DAN FREE CASH FLOW

2018 ◽  
Vol 1 (2) ◽  
pp. 1-14
Author(s):  
Tumpal Manik
Keyword(s):  
Cash Flow ◽  
Capital Expenditure ◽  
Market Value ◽  
Free Cash Flow ◽  
Share Price ◽  
Price Ratio ◽  
Investment Opportunity ◽  
Book Value ◽  
Investment Opportunity Set ◽  
Equity Ratio

Penelitian ini bertujuan untuk menganalisis faktor-faktor yang mempengaruhi investment opportunity set terhadap kebijakan hutang dan free cash flow pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2016 – 2017. Pengambilan sampel dilakukan dengan metode purposive sampling. Jumlah populasi 168 yang memenuhi kriteria sebanyak 40 perusahaan, maka data penelitian 40 x 2 tahun yaitu 80 data. Pengolahan data penelitian untuk menguji hipotesis penelitian secara simultan dan parsial. Hasil penelitian bahawa faktor-faktor yang mempengaruhi investment opportunity set terhadap kebijakan hutang berpengaruh singnifikan, antara lain proksi ios berdasarkan Market to Book Value of Assets Ratio sebesar 16,1%, Market to Book Value Equity Ratio sebesar 18,2%, Earning per Share Price Ratio (sebesar 19,1%, Capital Expenditure to Book Value Asset Ratio sebesar 17,6%, Capital Expenditure to Market Value of Assets Ratio sebesar 15%. Sedangkan investment opportunity set terhadap free cash flow berpengaruh signifikan

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.

Degree of free cash flow leverage

2019 ◽  
Vol 18 (3) ◽  
pp. 346-365 ◽  
Author(s):  
David Yecham Aharon ◽  
Yoram Kroll ◽  
Sivan Riff
Keyword(s):  
Cash Flow ◽  
Capital Expenditure ◽  
Risk Measure ◽  
Efficient Frontier ◽  
Optimal Level ◽  
Free Cash Flow ◽  
Content Type ◽  
Optimal Output ◽  
The Cost ◽  
The Impact

Purpose This paper aims to forgo the conventional (degree of operating leverage) risk measure by replacing elasticity of operating profits with respect to output with elasticity of free cash flow (FCF) with respect to optimal output and by considering exogenous random demand shocks for the firm’s products as a source of risk. Design/methodology/approach The elasticity risk measure accounts for corporate taxes and the cost of bankruptcy. The methodology is selecting optimal level of production investment and capital structure to generate efficient frontier of expected FCF and its risk in terms of its elasticity with respect to output. Findings The risk measure leads to efficient frontier between expected FCF and its idiosyncratic managerial risk. The model also resolves the empirical debate on the tradeoff between operating and financial leverages. Originality/value It is the first elasticity risk measure that embodied the impact of future level of capital expenditure, total level of assets and their sensitivity to random shocks in the product market.

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