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Full-Text Articles in Business
An Empirical Analysis Of Cash Flow, Working Capital, And The Stability Of Financial Ratio Groups In The Hospital Industry, David Chun, Terrell Zollinger, Anne Kelly, Robert Sawyer
An Empirical Analysis Of Cash Flow, Working Capital, And The Stability Of Financial Ratio Groups In The Hospital Industry, David Chun, Terrell Zollinger, Anne Kelly, Robert Sawyer
Anne Kelly
Hospitals are facing stringent financial constraints as well as proposed changes in their financial reporting. Three issues were explored: (a) whether hospital financial ratio groups differed from industrial firm financial ratio groups found in previous studies; (b) whether hospital financial ratio groups remained stable over a five-year period 1983–1987; and (c) whether there was a difference between working capital flow, cash flow, and net income plus depreciation as alternative hospital asset flow measures. The results of our study confirmed the existence of five hospital ratio groups that were identical to industrial ratio groups. A separate Cash Flow group emerged for …
Re-Investment Allowance, Investment Tax Credit, And The Reality Of Corporate Cash Flow In Nigeria, Daibi W. Dagogo
Re-Investment Allowance, Investment Tax Credit, And The Reality Of Corporate Cash Flow In Nigeria, Daibi W. Dagogo
Daibi W Dagogo
This study examines the influences of tax incentives on cash flow of manufacturing corporations in Nigeria. To do this, research questions were raised, hypotheses were formulated, sixty (60) quoted manufacturing companies in Nigeria constituted the sample of this study and secondary data from Nigeria Stock Exchange fact book were complemented with ordinal data collected via questionnaire. The stated hypotheses were statistically tested with paired t-test of two means from the same sample. T-test was eventually used because of the ordinal data, which might not satisfy the condition of normal distribution. Our findings revealed that tax incentives significantly increased the mean …
Financing A Loss. Accounting And Finance Research, David Rakowski, Eahab Elsaid
Financing A Loss. Accounting And Finance Research, David Rakowski, Eahab Elsaid
Odette School of Business Publications
When companies have a net loss accompanied by negative operating cash flows, they must decide how to handle the financing deficit, or, stated differently, they must decide how to finance the loss. By examining a large sample of firms with net losses, we document how companies respond to the financing shock that occurs with negative cash flow. For companies with a one-year loss, current assets decrease and current liabilities increase. While we observe that leverage ratios increase during a loss year, this increase has more to do with decreasing book equity than an increase in long-term debt. However, when the …
The Impact Of A Simulation Exercise In The Intermediate Financial Accounting Course, Anne Rich, Karen Cascini
The Impact Of A Simulation Exercise In The Intermediate Financial Accounting Course, Anne Rich, Karen Cascini
WCBT Faculty Publications
This paper presents the results of a simulation exercise included in the intermediate financial accounting course and discusses its impact on college-level students. The objectives of this study are to assess the impact of using a simulation exercise to improve students’ mastery of cash flow reports, as well as to assess their ability to synthesize data and draw conclusions about the liquidity and solvency of a company. Students who were required to perform analysis prior to taking the exam did better overall on generating a cash flow statement as well as evaluating both the liquidity and solvency of a company.
The Relative Relevance Of Cash Flow And Accrual Information: A Multi-Method Approach, Divesh Sharma, Errol Iselin
The Relative Relevance Of Cash Flow And Accrual Information: A Multi-Method Approach, Divesh Sharma, Errol Iselin
Errol Iselin
This multi-method study reports the results of two complementary experiments investigating the relevance of cash flow and accrual information. A behavioural field experiment investigated differences in the accuracy of solvency assessments between commercial lending managers using cash flow information and those using accrual information. Results indicated that commercial lending managers using cash flow information made more accurate solvency assessments than managers using accrual information. Results of an archival quantitative modeling experiment complemented these results and indicated cash flow information had incremental information content beyond accrual information. Our results confirmed the decision-usefulness of cash flow information and supported the mandate of …
The Decision Usefulness Of Reported Cash Flow And Accrual Information In A Behavioural Field Experiment, Divesh Sharma, Errol Iselin
The Decision Usefulness Of Reported Cash Flow And Accrual Information In A Behavioural Field Experiment, Divesh Sharma, Errol Iselin
Errol Iselin
While recent capital market studies tend to reveal some information content in cash flows, their results may not be generalisable to other contexts such as the assessment of solvency. Mandated accounting standards on cash flow emphasise the relevance of cash flow data for assessing solvency. However, there is a paucity of research that specifically investigates this contention. Accordingly, this study investigates the decision usefulness of reported cash flow and accrual information in a behavioural field solvency assessment experiment. Using a two-group between-subjects field experiment design, bankers with at least three years corporate lending experience made solvency judgments using either cash …
Participating Gics: Performance Attribution Analysis, Alec Stais, John P. Toohey Iii
Participating Gics: Performance Attribution Analysis, Alec Stais, John P. Toohey Iii
Journal of Actuarial Practice (1993-2006)
The increasing popularity of participating GICs has created a need for an objective understanding of their performance. The fixed income attribution techniques are not adequate for measuring participating GIC performance because they typically restrict performance measurement to concepts such as duration management, sector rotation, and issue selection. We develop an attribution technique based on four components or effects that are helpful in explaining the changes in credited rates. They are the constant duration effect, the reinvestment effect, the cash flow effect, and the investment effect. The underlying mathematical approach to calculating these effects is presented along with examples.
An Approach To Estimating Market Value And Duration Of Interest-Sensitive Whole Life Contracts, Thomas J. Merfeld
An Approach To Estimating Market Value And Duration Of Interest-Sensitive Whole Life Contracts, Thomas J. Merfeld
Journal of Actuarial Practice (1993-2006)
A fixed premium interest·sensitive whole life contract is analyzed in order to estimate its market value. In addition, using various definitions of duration, we determine the duration of the contract for each definition. The results of this analysis have implications for market value accounting of life insurance liabilities and for life company portfolio management.