Cash Flow Fixing: A New Approach to Economic Downturn (Small and Medium Size Enterprises)

Irene, Pison F.; Pilar, Cibrán F.; Lious, Ntoung A. T.

doi:10.2139/ssrn.2444820

SSRN Journal

2013

DOI: 10.2139/ssrn.2444820

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Cash Flow Fixing: A New Approach to Economic Downturn (Small and Medium Size Enterprises)

Pison F. Irene

Cibrán F. Pilar

Ntoung A. T. Lious

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Cited by 4 publications

References 39 publications

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Classification of bankruptcy with cash flow information: Evidence from small size firms

Lious¹,

Oliveira²,

Pereira³

2016

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Corporate financial ratios have been debated in the past as the most importance measures in predicting corporate failure, yet gaps remain in the literature about cash flow information in classifying between bankrupted and non-bankrupted firms. This study test whether cash flow components is more useful in classifying bankrupted and non-bankrupted of small and unlisted firms in Spain. The results of this study suggest that cash flows components are superior to financial ratios for classifying small failed and non-failed companies with the logit model. Particularly, most failing firms, reduce or avoid paying dividend to their owner. This reduction or the absence of dividend payments as a proportion of total outflow is often related to either a significant decrease in the net operating inflow and/or an increase in the relative outflow to fixed charges resulting from increased external debt financing.

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Classification of bankruptcy with cash flow information: Evidence from small size firms

Lious¹,

Oliveira²,

Pereira³

2016

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The impact of ownership structure on firm performance: The role of chairman and CEO in Portugal

Ntoung¹,

Biglieri²,

Oliveira³

et al. 2017

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This analysis investigates how family ownership structure affects the corporate performance of Portuguese listed firms using a panel data set covering the period from 2006 to 2014. Three characteristics of family firms (such as active management, active founder or heir and second blockholder) were examined with respect to the corporate performance. The main finding is that family firms over perform non-family in term productivity and profitability. This indicates that companies that have total family control are more productive and profitable than those market favour firms that the family does not have total ownership. Specifically, family firms with active founders perform better whereas those with active heirs significantly outperform compared to family firms with passive owners or heirs. Family firms with a family member in the company as either CEO or Chairman create more value and are more profitable than non-family firms. Family firms with descendant as CEO perform better meanwhile family firms with the founder as CEO significantly outperform family firms with Outside CEO for corporate performance. Lastly, the presence of a second blockholder who owns between 5-10% of the voting right enhances the corporate performance of the family firms as it counterbalances the controlling shareholder from unnecessary behaviours.

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Capital structure determinants: Evidence from Spanish listed firms

Tabot¹,

Cecilio²,

Guillén³

2016

COC

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Using annual data that records leverage levels of 77 non-financial firms in Spain prior and during the financial crisis, we demonstrate that tangibility, size, volatility, profitability, non-debt tax shield, growth opportunities and industry effect are factors that determine the capital structure of a company. Our results show that leverage is positively and statistically significant with size, non-debt tax shield and industry-effect. Our findings illustrate that profitability; growth opportunity and volatility are negatively and statistically significant with the debt issues on the balance sheet of these public traded firms. We discuss the extent to which these results are consistent with empirical evidence illustrated by prior studies with reference to the 2008 financial crisis. Also, during the 2008 financial crisis the cost of financial distress is high, and as such when size is used as a proxy for the probability of bankruptcy a negatively relationship is inevitable. Lastly, majority of the listed firms were more attached by equity finance as a result of the reluctant behavior of the international investors and the falling Spanish economy.

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Cash Flow Fixing: A New Approach to Economic Downturn (Small and Medium Size Enterprises)

Cited by 4 publications

References 39 publications

Classification of bankruptcy with cash flow information: Evidence from small size firms

Classification of bankruptcy with cash flow information: Evidence from small size firms

The impact of ownership structure on firm performance: The role of chairman and CEO in Portugal

Capital structure determinants: Evidence from Spanish listed firms

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