Free Cash Flow Research Papers (original) (raw)

2025, International Journal of Accounting & Finance in Asia Pasific

The company not only aims to seek profit, but also to maximize the prosperity of its shareholders by maximizing the value of the company. Within the company, there are three people who have different interests, namely, company owners, shareholders and managers. When the company generates free cash flow, there will be differences in the interests of the parties who make the work contract and create a conflict that will cause the company to pay costs, which is called agency cost. The result of this difference in interest can also affect the company's financial performance, because the company's finances are not going well. The purpose of this study was to determine the effect of free cash flow (FCF) on agency cost and financial performance in financial sector companies listed on the IDX in 2015-2016. The type of research used in the research is Explanatory Research, with a population of 83 companies listed on the Indonesian stock exchange in the financial sector in 2015-2016. ...

2025, Jurnal Akuntansi dan Bisnis Krisnadwipayana

This study aims to empirically prove the effect of free cash flow, institutional leadership, managerial leadership and company growth on debt policy in property and real estate and building construction sector companies listed on the... more

2025, Laporan keuangan PT. Japfa

Laporan keuangan PT. Japfa

2025, Journal of Business Economics and Management

This paper provides general framework for handling time-varying cost of capital, leverage, tax rates, and capital values in a dynamic free cash flow theory of capital structure. That enables efficient analysis of the recent competing theories of capital structure. After including the costs of financial distress and risk premium of debt in the cash flow model, this paper provides a new look at cost of tax shield from the point of view of risk-return relationship. Cost of tax shield is not constant, but depends on leverage and is mostly between cost of assets and cost of debt. Moreover the simulation of firm value and capital structure in presence of taxes, risk, and growth shows that unique optimal leverages exist for each combination of the above factors. The risk-enhanced cash flow theory can explain both the observations, which support pecking order theory, free cash flow theory and tradeoff theory of capital structure. Moreover it fits some evidence, which resists these theories:...

2025

Dengan ini saya menyatakan dengan sesungguhnya bahwa dalam skripsi ini tidak terdapat keseluruhan atau sebagian tulisan orang lain yang saya ambil dengan cara menyalin dan meniru dalam rangkaian kalimat atau simbol yang menunjukkan gagasan, pendapat, ataupun pemikiran dari penulis lain yang saya akui seolah-olah sebagai tulisan saya sendiri dan tidak tedapat sebagian atau keseluruhan tulisan yang saya ambil, tiru atau salin dari orang lain tanpa memberikan pengakuan pada penulis aslinya. Apabila saya melakukan hal tersebut diatas baik sengaja ataupun tidak, dengan ini saya menyatakan menarik skripsi yang saya ajukan sebagai tulisan saya sendiri. Bila kemudian terbukti bahwa saya ternyata melakukan tindakan menyalahi atau meniru tulisan orang lain seolah-olah hasil pemikiran saya sendiri, berarti gelar dan ijazah yang telah diberikan universitas batal saya terima.

2025

This study focus on one of important corporate decision that can have a great impact on the sentiments of the investor's i.e. corporate dividend policy. This study investigates the determinants of the corporate dividend policy in the context of agency relation. The analysis of the study has based on the random sample of seventy firms from Karachi Stock Exchange KSE-100 index for the period of eight years ranging from 2003 to 2010. Stepwise multiple regression has used to investigate for the relationship of ownership variables with the dividend payouts. The empirical results suggested that there has a negative relationship between the dividend payouts and managerial share ownership and thus these are alternative tools that can be used to minimize the agency problem. Where there has positive relationship between the institutional and foreign share ownership suggested that the higher has their shareholdings the higher will be the firm dividend payouts that will leads to less availability of the cash flows with the opportunities managers to expropriate the shareholders wealth. Further more managerial share ownership has explanatory power of 18%. While the institutional ownership has explanatory power of 23.3% there for it can be concluded that the incremental effect of the institutional ownership in the model has about to 5% while that of the foreign ownership contribute about 1.9% with the total model explanatory power of 25.2%.

2025, E-Jurnal Akuntansi

The purpose is to find out which influence profitability, investment opportunities, free cash flow, and debt policy on dividend policy. The population is manufacturing companies were listed on the Indonesia stock exchange period 2011-2014. The number of sample 21 company in 4 years of observations obtained 84 total observations with purposive sampling technique. The analysis of the data used in this study is multiple linear regression analysis. The study found that significant negative effect on the profitability of the dividend policy. Investment opportunities significant negative effect on the dividend policy. Free cash flow significant positive effect on the dividend policy. Debt policy significant negative effect on the dividend policy. Based on the value of R2 values obtained 0.356 meaning the great influence of the independent variable on the dividend policy can be explained by a model equation of 35.6%. The rest of 64.4% is affected by other factors.

2025, International Journal of Accounting & Finance Review

Free cash flow in the Nigerian non-financial firm is related to earnings management (EMT), which has been identified as one of the main culprits leading to catastrophic fraudulent and financial reporting scandals, resulting in huge losses that shareholders can suffer in billions of Naira and dollars. This study examines the Moderating impact of institutional ownership and audit committee independence on the relationship between FCF and EMT of listed non-financial companies in Nigeria. The analysis relies on balanced panel data of seventy-six (76) from 2012 to 2022 and uses purposeful sampling to arrive at a sample of 39. The study's findings suggested that FCF is a resource that triggers managers to engage in EMT. Still, interacting with IWN and ACI has a significant positive impact on EMTs. This implies that the presence of IWN and ACI can reduce the EMT. Thus, the Study recommended that authorities like IFRS, CBN, FRCN, NDIC, SEC, and NSE encourage the manager to invest FCF in projects with net present value. Institutional investors should encourage financial analysts to expose FCF so that investors can make optimal decisions. ACI should use its position to discourage corporate executives from opportunistic behavior. IWN and ACI should monitor the managers to ensure that accounting numbers in the financial statement are correctly calculated and reported in their disclosure.

2025, Journal of Accounting and Financial Management

This study examines whether board ownership, defined as the proportion of company shares held by board members, encourages the adoption of a dividend payout policy among publicly traded firms. The underlying problem is the persistent ambiguity in the relationship between managerial ownership and dividend distribution, particularly in emerging markets where corporate governance mechanisms are often weak or poorly enforced. The purpose of this study is to determine if shared ownership among board members aligns their interests with those of shareholders in a manner that promotes regular dividend payments. Using a quantitative research design, the study employed panel data from a sample of 104 non-financial firms listed on the Nigerian Exchange between 2007 and 2023. A random effects model (REM) regression was applied to evaluate the influence of board ownership on dividend payout, controlling for firm size, profitability, and leverage. The findings indicate a positive and statistically significant relationship between board ownership and dividend payout ratio. This suggests that when board members hold substantial equity stakes, they are more inclined to authorize dividend payments, likely as a means of self-benefit and signaling firm stability to the market. However, the study is limited by its focus on a single emerging market, the exclusion of financial firms due to their unique regulatory environment, and the use of only one corporate governance mechanism. The implications are notable for shareholders, regulators, and policymakers. Encouraging equity participation among directors may be a viable strategy for improving shareholder returns and mitigating agency conflicts. This study contributes original insight to the ownership-structure-dividend literature by offering empirical evidence from an underexplored context and reinforcing the notion that insider ownership can act as a disciplinary tool in corporate governance.

2025, JURNAL JEBAKU

This study aims to determine the determinants of a company's capital structure (debt ratio) such as asset structure, profitability, agency costs, innovation and technology, and company size. The population in this study uses technology companies and are listed on the Indonesia Stock Exchange in the period 2019-2021 using a purposive sampling method that meets the research criteria with panel data analysis. The determination of the research sample was based on a purposive sampling method with a total sample of 36.The data used is secondary data derived from the company's financial reports which have been accessed via www.idx.co.id. Secondary data processing using eviews analysis techniques. The results of this study indicate that asset structure has a positive influence on capital structure; however, profitability, agency costs, innovation and technology, and company size do not affect the capital structure. For Technology Companies listed on the IDX, based on the results of this research, it is hoped that they can provide broad insight to company management to oversee the company's capital structure in a good, effective and efficient manner, thus enabling companies to take advantage of the capital structure. For investors and potential investors, if they want to invest, it is advisable to look at the financial condition of the company which can describe the company's value every year in the form of annual income and dividends distributed by the company and consider the company's cash flow before making a decision to invest in a technology sector company listed on IDX so that investors can provide capital to the right companies and have good value

2025, Revue du contrôle, de la comptabilité et de l’audit

La succession des scandales financiers à l'échelle planétaire (Enron, WorldCom, Parmalat, UBS, Batam…) soulève de plus en plus la nécessité de se procurer d'un système de gouvernance plus efficace, en d'autres termes un système de gouvernance dont les mécanismes internes sont cohérents avec la structure organisationnelle et financière de l'entreprise , capable de faire face aux différentes formes d'opportunisme managérial. Le présent travail cherche à examiner la relation entre certains mécanismes de gouvernance interne et la qualité des résultats comptables publiés par les entreprises, à savoir le conseil d'administration (structure, dualité, indépendance et cumul de fonctions) et la structure de propriété (degré de concentration et typologie d'actionnariat) et la politique d'endettement et ce à travers une étude théorique exploratoire. Conseil d'administration ; structure de propriété ; politique d'endettement The succession of financial scandals in the world (Enron, WorldCom, Parmalat, UBS, Batam…) raise more and more the need to have a more effective governance system, in other words a governance whose system of the internal mechanisms is in total consistency with the organizational and financial structure of the company, and able to tackle any form of managerial opportunism.

2025, International Journal of Social Science and Business

Company management (agent) is the party most concerned to practice earnings management to deceive the users of financial statements so that management gain private gain (obtaining privat gains). In addition, firms with high leverage ratios are influential in performing earnings management practices because the company is in default. The existence of the principle of good corporate governance is expected to minimize earnings management resulting in financial statements do not describe the fundamental value of the company actually.The study aims at stating wheader is proves significant influence between the institutional ownership, the composition of independent commissioners, the size of the board of directors, the size of the company and the leverage on earnings management.The results of research on non-bank companies listed in LQ 45 in Indonesia Stock Exchange year 2013-2016 show that partially the composition of independent commissioners, firm size and leverage have a positive eff...

2025

Tesis dengan judul “Pengaruh Profitabilitas, Struktur Modal, dan Kebijakan Deviden Terhadap Nilai Emiten Saham Syariah di Bursa Efek Indonesia “ ini ditulis oleh Achmad Budi Susetyo, NIM 12508184001, dengan dibimbing Dr. Agus Eko Sujianto S.E, M.M dan Dr. Mochamad Arif Faizin, M.Ag Kata Kunci : Profitabilitas, Struktur Modal, Kebijakan Deviden, Nilai Perusahaan Pesatnya perkembangan pasar modal syariah di Indonesia, menimbulkan fenomena baru pergeseran minat masyarakat di dalam penanaman modal. Hal ini berkaitan dengan semakin besarnya kesadaran mayarakat terkait dengan sekuritas yang diperdagangkan di pasar modal, dimana setiap sekuritas yang diperdagangkan seharusnya sesuai dengan syariat-syariat islam. Pesatnya perkembangan pasar modal syariah memicu pertumbuhan tehnik analisis, khususnya analisis fundamental. Melalui analisis fundamental ini, kausalitas antara profitabilitas, struktur modal, dan kebijakan dividen menjadi kunci utama dalam mengungkapkan dinamika nilai perusahaan,...

2025, SSRN Electronic Journal

2025, Social Science Research Network

This paper studies the long-run implications of excess cash holdings on firm performance in the context of acquisitions or takeovers. We propose a new classification scheme for firms engaging in an acquisition or takeover based on a free cash flow model that allows cash levels to vary given firm and industry characteristics. In this model high cash levels do not necessarily imply agency problems. We evaluate the long-run stock market performance of bidders based on a calendar time portfolio approach and a BHAR approach with robust t-statistics. We find significant underperformance for bidding firms in the order of -5.88% p.a. (based on calendar time portfolios) or -31.70% over five years (based on BHARs) that cannot be explained by changes in risk loadings or costs of capital. Our results indicate that changes in excess cash during the post-acquisition period play an important role in deteriming post-acquisition performance. Excess cash is highly persistent over time. Those bidders that were cash constrained when announcing an acquisition but managed to improve their cash position subsequently, delivered the best long-run performance for shareholders.

2025, Risk Governance and Control: Financial Markets & Institutions

This research-work uses a survey which comes from three different countries in ASEAN region i.e Indonesian, Thailand and Malaysian. This work integrate whole data from above all countries to examine whether firms that do corporate governance practising will pay higher dividends. This study has two issues: how regulation of stock exchange affects good corporate governance and how corporate governance affects value of the firm. Using OLS regression, our finding shows that good corporate governance practices has positive sign to dividend payout. Our finding may contribute to corporate governance literature. First, result finding support Jensen’s (1986) that states free cash flow not reduce dividends pay out. Second, integrating empirical model from three different countries in ASEAN region.

2025, Estudios Gerenciales

Although we know there exists a simple approach to solve the circularity between value and the discount rate, known as the Adjusted Present Value proposed by Myers, 1974, it seems that practitioners still rely on the traditional Weighted Average Cost of Capital, WACC approach of weighting the cost of debt, Kd and the cost of equity, Ke and discounting the Free Cash Flow, FCF. We show how to solve circularity when calculating value with the free cash flow, FCF and the WACC. As a result of the solution we arrive at a known solution when we assume the discount rate of the tax

2025

Blockholders as the majority shareholders of the company are indicated to have the power to determine company policies, including dividends policies. The aim of this research is to investigate the role of blockholders on the dividend policy of Indonesian public companies. The analysis was carried out using 2016-2017 financial report from 213 Indonesian public companies. A linear regression conducted to test the relationship between blockholders on dividend payout ratio, and to determine the moderating role of multiple blockholders. The finding of the study reveal that ownership concentration by blockholders proved to have negative significant influence on the decision the portion of profit distributed on dividends (dividends payout ratio). The moderation model testing result that existence of multiple blockholders is not moderate the relationship of ownership concentration by blockholders and dividend policies. Keywords: blockholders, multiple blockholders, dividend policies.

2025, Journal of Legal, Ethical and Regulatory Issues

The exports of Pakistani SMEs have decline significantly in the last few years. The main reason behind this decline is lack of implementation of labour laws and inhumane practices. This study is an attempt to understand the differences between the laws and the practices by the SMEs in Sialkot, Punjab Pakistan. The study identified that the major consequences of lack of implementation of labour laws are extreme long working hours, insufficient compensation for overtime, occupational safety and health issues, punishments, hurdles in resigning or leaves, and weak union representation. The findings of the study are helpful for the policy makers especially because all these illegal or unethical practices are being followed due to ignorance of the labour force and the owners. The study suggested legislation and creation of awareness among the labour force.

2025, DergiPark (Istanbul University)

This paper proposes to investigate the postulations of renowned agency theory and shareholder value (SHV) in relation to corporate governance (CG) attributes. SHV is of a great concern to the shareholders of firms. SHV have been investigated by numerous studies of CG but with inconsistent empirical evidence. This study will focus on investigating the impact of CG attributes on SHV measured by Tobin's Q or return on both equity and assets. The paper conceptualized four attributes (Separate leadership, proportion of Independent director, independent chairman, independence of nomination committee) from CG mechanism in relation to SHV in companies listed on BURSA Malaysia. This is a conceptual paper which proposes to investigate the relationship between SHV and separate leadership, SHV and proportion of independent director, SHV and independent chairman, SHV and independence of nomination committee in the context of Malaysia. The proposed study has value for Malaysian government, policy makers, corporate boards, stock exchange and shareholders by highlighting the distinct impact on SHV and its relation with separate leadership, proportion of independent director, independent chairman, and independence of nomination committee.

2025, Australian Journal of Management

Does poor post-acquisition performance characterise firms that make non-M&A acquisitions? We investigate the wealth effects of substantial asset acquisitions (i.e. acquisitions that cost over $10 million) on acquiring firms' shareholders. We find significant abnormal positive market reaction to asset acquisition announcements and contrary to findings for firms undertaking M&As, the acquiring firms perform exceptionally well post-acquisition. Our findings are robust to the research method weaknesses common to many studies of long-term performance and we control for free-cash-flow as well. Our results contradict the hubris hypothesis of acquisitions and lend weight to the argument that the auction-style process that characterizes corporate takeover bids contributes to overpayment.

2025, Article

This study aims to examine the extent to which operating cash flows, net income, and sales influence future cash flows, and whether accounting conservatism moderates these relationships. The research sample comprises companies listed in the Kompas100 index of the Indonesia Stock Exchange during the period 2015–2020. Employing a purposive sampling method, the study collected 320 firm-year observations from published financial statements. To assess the predictive ability of operating cash flows, net income, and revenue on future cash flows, multiple linear regression models were employed with accounting conservatism included as a moderating variable. The empirical results indicate that both operating cash flows and net income have a positive and statistically significant effect on future cash flows. Conversely, revenue does not exhibit a significant influence on future cash flows. Moreover, the findings suggest that accounting conservatism attenuates the relationship between operating cash flows, net income, and revenue with future cash flows, thereby underscoring its role in tempering managerial optimism in financial reporting.

2025

Penelitian ini bertujuan untuk menguji dan mengetahui pengaruh penerapan IFRS dan kepemilikan manajerial terhadap timely loss recognition. Selain itu, penelitian ini juga bertujuan untuk menguji apakah variabel real earning management memoderasi hubungan antara masing-masing variabel IFRS dan kepemilikan manajerial terhadap timely loss recognition. Sampel yang digunakan dalam penelitian ini adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 20122015. Total sampel berjumlah 21 perusahaan dengan menggunakan teknik purposive sampling. Metode analisis data menggunakan regresi berganda dan analisis regresi moderating dengan pendekatan nilai selisih mutlak. Analisis regresi linear berganda untuk hipotesis IFRS dan kepemilikan manajerial. Analisis regresi linear berganda dengan uji nilai selisih mutlak untuk hipotesis penerapan IFRS dan kepemilikan manajerial yang dimoderasi oleh real earning management. Hasil penelitian menunjukkan bahwa penerapan IFR...

2025, IJFAES, Vol (4), No (3), March 2025

The study aims to show the impact of free cash flows on the value of the facility in Almarai, with recommendations that contribute to improving cash management and enhancing the value of the facility. The results of the statistical analysis showed that it was not possible to formulate an accurate model due to the absence of statistical significance in both models, which indicates the need to take into account additional factors, such as operating profits and financial structure, to explain the value of the facility more comprehensively. Accordingly, the study recommends expanding the scope of the research to include additional variables, such as operating profits and debt ratios, to enhance the accuracy of the models used and achieve a deeper understanding of the factors affecting the value of the facility

2025, International Journal of Accounting, Auditing and Performance Evaluation

This study examines a recent change in voluntary disclosure by investigating the issuance of management cash flow forecasts for a sample of 690 UK non-financial firm-year observations which are drawn from the top 500 UK listed firms by total market capitalization as listed by Financial Times on 30 March 2007. Automated content analysis is used to search for cash flow forecasts in annual reports narratives using QSR NVivo 8. The results of regression analysis provide support for institutional theory that companies try to imitate the disclosure practices of other companies in the same industry. Also, the results document that operating cash flow, industry behaviour, cross-listing, and company size are positively and significantly related to disclosure of cash flow forecasts, whereas performance and competition rate are negatively and significantly related to disclosure of cash flow forecasts. However, the results fail to find any significant relationship between normative or coercive isomorphism proxies and disclosure of cash flow forecasts.

2025, Scientific International (Lahore)

The overall goal of this research is to investigate the relationship between financing activities and the future returns of value and growth stocks in the capital market. The study examines a sample of 116 companies listed on the Tehran Stock Exchange from 2007 to 2012. The results indicate no statistically significant difference in returns between value stocks and growth stocks. However, external financing activities differ significantly between these two groups. A negative relationship was found between the book-to-market value ratio and future stock returns, suggesting that higher book values relative to market values lead to lower future returns. Conversely, there is a positive relationship between external financing and future returns, indicating effective use of outside capital can enhance stock performance. The findings suggest that capital market participants may not distinguish between value and growth stocks in practice, but capital suppliers might factor such classifications into their financial decisions.

2025, Review of Quantitative Finance and Accounting

This paper explores the influence of military directors in protecting shareholders’ wealth through CEO compensation and corporate dividend payout policies. Based on manually collected data on corporate boards of non-financial companies operating in Pakistan, the results indicate a significant negative association between the presence of military directors on corporate boards and CEO compensation, thus supporting the notion that such directors are effective in monitoring and curtailing excessive rent seeking behaviour by the agents. In other words, presence of military directors on Pakistani corporate boards reduces agency costs and in turn enhances shareholders’ wealth. Results also indicate significant positive relationship between presence of military directors on boards and dividend payout, hence signifying that such directors are effective in enhancing shareholders’ wealth by reducing free cash flow opportunities that would otherwise be deployed by agents for their private benef...

2025, Jurnal Akuntansi dan Bisnis Krisnadwipayana

2025, Financial Analysts Journal

Among small-capitalization firms, defined as those having market values below $2 billion, some are consistent free cash flow generators, have low financial leverage, and sell at low free cash flow multiples. Presented herein is an investment strategy that selects such securities into a "long" portfolio with returns that outperform the market index, returns of similar-sized securities, returns of firms with similar book-to-market-value ratios, and returns of similarrisk (beta) securities.

2025

This research is aims to examine the influence of financial performance to the firm value with Good Corporate Governance (GCG) as the moderating variable. The sample of empirical studies are non-financing companies listed on Indonesia Stock Exchange which have Corporate Governance Perception Index (CGPI) score period 2008-2017. Independent variable used in this research is Profitability and Leverage. The dependent variable is the firm value, and the moderating variable is GCG proxied by Corporate Governance Perception Index. The total sample size in this study is 102 non-financing companies with the determination of the sample using purposive sampling. The type of data using is secondary data. Data analysis tool used multiple regression analysis which preceded by descriptive analysis followed by classical assumption test, hypothesis test using F test and t test. The results of this study is Profitability and Leverage has a positive effect on Firm Value. GCG is able to strengthen the effect of Profitability on Firm Value but GCG is not able to strengthen the effect of Leverage on Firm Value.

2025, Financial Analysts Journal

The financial policy highly leveraged firms (HLFs) commonly follow implies uncertain leverage. Explicit allowance for this characteristic leads to two complementary pricing models. A recursive formula for the value of HLF follows from applying the adjusted present value (APV) approach to uncertain tax shields. This formula is used to evaluate the robustness of the simple A P V rule and other valuation approaches used in practice. The HLF equity is also modeled as a call option with uncertain exercise price, which provides a natural way of dealing with uncertain leverage and complements the A P V approach. Both models require inputs that are usually observable. The models developed in this article apply to the valuation of firms undergoing financial restructuring, as well as to leveraged buyouts and project financing. In all these situations, firms deploy all or a significant portion of their free cash flow to debt reduction and their leverage ratio is uncertain. M any highly leveraged firms (HLFs) plan to reduce their leverage ratios over time toward targets by deploying their free cash flow to debt reduction. These firms include leveraged buyouts (LBOs) and recapitalizations, such as Owens Coming Fiberglass and Southland, as well as firms such as Eastman Kodak and K-Mart, which for a variety of reasons, ended up with a leverage higher than their targets and embarked on financial restructuring. Valuation of such firms is difficult because their future leverage ratios are uncertain. Another valuation problem with uncertain debt reduction to which the models discussed in this article apply is project financing. The usual valuation approaches are unable to deal with the special characteristic of HLFs: Debt reduction is a function of cash flow realizations and, therefore, is uncertain. 1 Leverage changes invalidate the use of a constant weighted-average cost of capital or a constant cost of equity. Furthermore, available formulas for adjusting the cost of equity as a function of leverage are not applicable to this case. For example, pointed out that relevering beta coefficients using the well-known formula of is only valid when future cash flows are a perpetuity. Predetermined leverage changes offer no diffi-©Association for Investment Management and Research

2025, Ekonomis: Journal of Economics and Business

The aim of this research is to provide empirical evidence on the impact of good corporate governance, free cash flow, and leverage ratio on earnings management. Good corporate governance is measured by audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership. Discretionary accrual is the proxy of earning management. This research used 28 consumer goods companies listed in Indonesia Stock Exchange from 2016 to 2018. Data were analyzed using panel data with random effect model. Based on the result of analysis concluded that all components of good corporate governance (audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership), have no significant effect on earnings management, on other hand leverage ratio has a negative effect and no significant on earning management, and free cash flow has a positve and no significant effect on earnings management

2025, Corporate Ownership and Control

The purpose of the research is to provide empirical evidence about the effect of board of commissioner, board independence and audit quality on relationship between free cash flow and earnings management. This research used 290 data from manufacturing companies listed in Indonesia Stock Exchange, selected using purposive sampling method, during 2012 until 2014. Earnings management calculated using Modified Jones (1991) Model include ROA from Kothari et al. (2005). Data for the research were analyzed using multiple regression analysis. The results of the research showed that the effect of board of commissioner, board independence and audit quality on relationship between free cash flow and earnings management is negative and significant. Board of commissioners, board independence and audit quality can reduce earnings management problems arising from free cash flow. Board of commissioners, board independence and audit quality oversee the opportunistic behavior of managers that arises ...

2025, Jurnal Bisnis dan Akuntansi

The purpose of this study is to examine the factors that influence earnings management in Indonesia. Those factors are profitability, leverage, firm size, audit committee, independent commissioner proportion, institutional ownership, managerial ownership and free cash flow. The population are non financial companies listed in Indonesia stock exchange. This study used 283 samples and samples selection procedure used purposive sampling. This research uses multiple regression analysis method. The result of this study shows that profitability and free cash flow have influence to earnings management. While, leverage, firm size, audit committee, independent commissioner proportion, institutional ownership and managerial ownership do not have influence to earnings management.

2025

2025, Estudios Gerenciales

We examine the value market assigns to components of the cash flow to equity including potential dividends. We study non financial publicly traded firms from five Latin American countries. The model includes four variables: market value of equity, dividends paid, change in equity investment and change in liquid assets (potential dividends) and are regressed with actual equity value as dependent variable. Tests applied give robust results. The main conclusions: Market assigns less than one dollar to a future dollar for any of the variables studied. Potential dividends destroy value. A dollar invested in liquid assets has a negative Net Present Value and it is not zero NPV investments. We confirm the agency costs of keeping undistributed cash flows.

2025, ESTUDIOS …

Downloadable! Se examina el valor que el mercado asigna a los componentes del flujo de caja del accionista, incluidos los dividendos potenciales. Se estudia empresas transadas de cinco países de América Latina. El modelo incluye cuatro... more

2025

El metodo conocido como flujo de caja descontado fue introducido por los premios Novel Modigliani y Miller en 1961. La dificultad de este metodo de valoracion nace de las limitaciones para realizar unas previsiones razonables de los flujos de caja futuros y de la imprecision para determinar la tasa de descuento para calcular su valor actual. (Consultores, 2007, p. 20) Con La realizacion de este trabajo se busca analizar el metodo de valoracion de empresas bajo el modelo de flujo de caja descontado mediante recopilacion de la informacion ya existente, actualmente los empresarios se encuentran afectados en general, debido a que al no tener conocimiento del rendimiento y rentabilidad de la empresa, genera incertidumbre al cuantificar la evolucion del patrimonio debido a que la competitividad de una valoracion esta relacionada con la aptitud e independencia de quien la ejecute, las personas que elaboren los estudios para dicha valoracion, deben contar con la informacion historica financ...

2025, Jurnal Ilmu dan Riset Manajemen (JIRM)

Sharing dividend of the shareholders depends on each company policies. This kind of dividend is also affected by profitability, liquidity, firm size, leverage, and managerial ownership. While, this research aimed to find out the effect of profitability, free cash flow, and liquidity on the dividend policy. Moreover, the profitability was referred to return on asset and liquidity was referred to current ratio. The research was quantitative. Furthermore, the population was all manufacturing companies which were listed on Indonesia Stock Exchange. In addition, the data collection technique used purposive sampling. In line with, there were ten manufacturing companies with five years observation (2013)(2014)(2015)(2016)(2017). For the data analysis technique, it used multiple linear regression with SPSS 20. Based on the statistical t test, it concluded that profitability had significant effect on the dividend policy. It meant, the higher profitability the more dividend would be given by the company to every shareholders. And the result of free cash flow and liquidity, those variables did not have significant effect on the dividend policy, it meant, the higher free cash flow and liquidity won't affect the amount of dividend paid to shareholders.

2025, Research Journal of Finance and Accounting

Based on the Agency literature, on the one hand, cash dividends paid to shareholders reduce free cash flows and reduce the risk of investment in non-optimal investing projects, and on the other hand, increase constant control on managers by capital markets. Accordingly, interest payments as a policy maker-works to reduce conflict of interest. Hence, this study is about the survey of effect of mechanisms of Corporate Governance on the dividend policy of the companies accepted by the Tehran Stock Exchange. Four hypotheses represented to test this effect. The population of this study involves all listed companies of the Tehran Stock Exchange. Taking consideration the limitations of the sample of the present study, 71 companies selected as the sample of this study. The present study discusses mentioned companies from 2009 to 2013. The methodology of this study involves using the past information. Using statistical methods ,regression analysis using combined data by fixed-effects. The obtained results of this study are indicative that is not a meaningful relation between the mechanisms of Corporate Governance and the rate of dividend.

2025, DOAJ (DOAJ: Directory of Open Access Journals)

Este trabalho demonstra que o aumento na distribuição de proventos em dinheiro pelas companhias brasileiras deveu-se a um crescimento na propensão a remunerar os acionistas e não às mudanças de características das empresas. Diferentemente dos EUA, a atual estrutura tributária brasileira favorece a remuneração direta, tornando as empresas mais propensas a tal. Analisando separadamente dividendos e juros sobre o capital próprio, observa-se que os juros sobre o capital próprio tornaram-se o principal mecanismo de distribuição direta. As firmas mais prováveis de remunerar diretamente caracterizam-se como as mais lucrativas, maiores e menos endividadas. Palavras-chave: dividendos, juros sobre o capital próprio, tributos, política de remuneração.

2025, MPRA Paper

We show that project evaluation should be based on free cash flows at nominal prices. We present a case where the results from the constant price method are biased upwards and there is a risk to accept bad projects. It is a widespread practice to evaluate projects at constant prices. With an example presented in the training on economic regulation of public utilities developed by the World Bank Institute we asses that methodology. We show an overvaluation of 21% when compared with the current prices methodology and using a correct Weighted Average Cost of Capital, WACC. World Bank, regulatory policy for infrastructure, developing countries, project evaluation, project appraisal, firm valuation, cost of capital, cash flows, free cash flow, capital cash flow RESUMEN En este trabajo mostramos que la evaluación de proyectos debe hacerse con base en flujos de caja calculados a precios corrientes o nominales. Presentamos un caso donde los resultados obtenidos con el método de precios constantes están sobre estimados y existe por tanto, el riesgo de aceptar malos proyectos como buenos. Evaluar proyectos con flujos a precios constantes es una práctica muy generalizada. Se trabaja y evalúa un ejemplo desarrollado por encargo del World Bank Institute y presentado como caso en el entrenamiento de consultores y asesores en regulación de de empresas de infraestructura. Se muestra que en ese caso hay una sobre valoración del 21% cuando se compara con los resultados calculados a precios corrientes o nominales y cuando se utiliza un Costo Promedio Ponderado de Capital (CPPC) (Weighted Average Cost of Capital, WACC) correcto. World Bank, Banco Mundial, políticas de regulación, infraestructura, países en desarrollo, evaluación de proyectos, valoración de empresas, costo de capital, flujos de caja, flujo de caja libre, flujo de caja de capital.

2025, Jurnal Online Mahasiswa Bidang Ilmu Ekonomi

Earnings management is defined as a managerial discretionary practice of timing strategic and operating decisions (e.g., accelerating sales, postponing research and development) or choosing accrual estimates (excessive reserves) to manage short-term earnings. Earnings management is made possible and is often legitimately accomplished within the flexibility of GAAP rather than through noncompliance with GAAP. Earnings management with the purpose of creating misleading financial information or misrepresenting financial performance can constitute fraud. This study aimed to assess the effect of institutional ownership, independent board, percentage of public shares, audit committee, and leverage on earnings management. The population in this research that companies listed on the indonesia stock exchange (BEI) period 2008-2011. Sampling was purposive sampling method. Data collection method is a method of documentation. Hypothesis testing using linear regression analysis.

2025, Jurnal Akuntansi Manado (JAIM)

Penelitian ini bertujuan untuk mengetahui apakah Free Cash Flow dan Investment Opportunity Set terhadap Dividend Payout Ratio pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2017-2020. Metode penelitian dalam skripsi ini adalah analisis statistik deskriptif, uji chow, uji hausman, dan uji hipotesis. jumlah sampel penelitian ini sebanyak 180 dengan menggunakan purposive sampling diperoleh 10 perusahaan selama 4 tahun. Berdasarkan hasil analisis data dengan menggunakan uji parsial (t), free cash flow berpengaruh signifikan terhadap dividend payout ratio yang ditunjukkan dengan t hitung sebesar -0,30 dan nilai signifikan 0,00 sehingga hipotesis alternatif pertama diterima. Variabel investment opportunity set berpengaruh signifikan terhadap dividend payout ratio ditunjukkan dengan t hitung 0.87 dengan nilai signifikan 0,04 (lebih kecil dari 0,05) sehingga alternatif kedua diterima. Sedangkan secara simultan (f), Free Cash Flow dan Investment Opportunity Set berpengaruh terhadap D...

2025, MPRA Paper

Downloadable! ABSTRACT This research paper focused on the corporate restructuring of Nippon Telegraph Telecommunication (NTT Group) under the pure holding company structure in 1999 and its implications. In order to understand the holding... more

2025

As an information system, accounting can assist users by providing them with relevant and reliable information for making reasonable decisions. The information including financial statements can meet the needs of financial users. One of these financial statements is cash flow statement. Thus, this study surveys the relationship between changes in the components of cash flow statement and market value changes of accepted companies in Tehran Stock Exchange from 2001-2004. For evaluating five subsidiary hypotheses and a main hypothesis, two-variable regression and multiple-variable regression was used. None of the hypotheses was confirmed. This means that the changes in component of cash flow doesn’t have any significant correlation with market value of the companies. One of the factors for the lack of such relationship between these variables is non-efficiency of Iran's stock exchange market and higher volatility of the independent variable versus dependent variable.