Cash flow statements and firm value: Evidence from Taiwan

Ni, Yensen; Huang, Paoyu; Chiang, Pinhui; Liao, Yulu

doi:10.1016/j.qref.2018.09.004

Cited by 25 publications

(12 citation statements)

References 71 publications

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“…FL explains the positive impact on FV among the listed firms of both the markets. Results of control variables are consistent with prior literature [57,58]. The results support the third and fifth hypotheses of the study only at the SZSE, and contradict all hypotheses at the SSE.…”

Section: Herding Bias and Firm Valuesupporting

confidence: 89%

Does Herding Bias Drive the Firm Value? Evidence from the Chinese Equity Market

et al. 2019

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Equity markets play a pivotal role in the sustainability of developing countries, such as China. The literature on the detection of herding biases is confined to the aggregate level (firms, sector/industry and market). The present study adds to the behavioral finance literature by addressing the surprisingly unnoticed phenomena of the behavioral impact of herding bias on firm value (FV) at the firm level, using the sample of A-Shares listed firms at the Shanghai and Shenzhen Stock Exchanges (SSE and SZSE) under panel fixed effect specification. Initially, we detect the existence of investors and managers herding (IHR and MHR) biases at firm-level, and later, we examine their impact (distinct and interactive) upon the FV. The empirical results document the presence of IHR and MHR bias at market, sector and firm-level in both equity markets, which potentially drive the FV, while the impact is more pronounced during the extreme trading period. The findings are robust under different time intervals, and industry classification, therefore, offers useful policy implications to understand the behavioral dynamics of investors and managers.

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Section: Herding Bias and Firm Valuesupporting

confidence: 89%

Does Herding Bias Drive the Firm Value? Evidence from the Chinese Equity Market

et al. 2019

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“…Different researchers like Boujelben and coworkers mentioned that maintenance of complete financial spending and earning record by CFO is necessary. It is imperative to have a complete check on overall business transactions, and the precise analysis of operational cash flow supports the financial stability and economic betterment of company (Ni, Huang, Chiang, & Liao, 2019). Other researchers also considered operational cash flow as an indicator of financial distress if this cash flow related activities are not critically analyzed and controlled.…”

Section: Literature Reviewmentioning

confidence: 99%

Banking Industry Specific Determinants of Financial Distress: Empirical Evidence from ASEAN Countries

2020

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Recently, financial distress has become a significant issue, especially for the banking sector, that is considered as the backbone of the economy. Thus, the present study aim is to examine the effects of operating cash flow, profitability, financial leverage, trading activities and liquidity on financial distress of the banking industry of ASEAN countries. The researchers have extracted the data from the central banks of ASEAN countries for the year 2009 to 2018. The random effect model along with generalized method of moment (GMM) approaches have been used to check the predictors such as operating cash flow, profitability, financial leverage, trading activities and liquidity on financial distress of banking industry of ASEAN countries. The results revealed that all the predictors such as operating cash flow, profitability, financial leverage, trading activities and liquidity have a positive association with the financial distress of the banking industry of ASEAN countries. These outcomes provide the guidelines to the regulation-making authorities that they should enhance their focus on the issue of financial distress that could improve the financial position of the banks along with the country.

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“…The company's strong free cash flow will imply that it is healthier, since it has free cash on hand, showing that it is in good shape. Free cash flow has a considerable beneficial effect on firm value [10] [11]. The following are the hypotheses offered in this study: H3: Free cash flow has an impact on the value of a company.…”

Section: Free Cash Flow and Company Valuementioning

confidence: 95%

Determination of Company's Value: A Study with Investment Opportunity as a Moderator Variable

Permata¹

2022

jefms

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This research focuses on the state of a company's valuation, which is always changing. The utilized variables to estimate firm value include free cash flow and interest rates, both of which have a positive relationship with company's value. The second purpose is to investigate the current situation of investment opportunities in industrial companies that are similarly highly volatile. The availability of free cash flow indicates the interest rate has a positive relationship with the investment opportunity set. An explanatory research design is used in this study, which aims to examine the correlation between variables. The manufacturing companies that were listed on the Indonesia Stock Exchange between 2013 and 2018 are the focus of this study. Thus, data were collected from 612 units using a purposive sampling technique. The findings reveal that whereas free cash flow has a strong positive indirect effect on company value via mediating the investment opportunity set, interest rates have a negative and minor indirect effect on firm value via mediating the investment opportunity set.

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Cash flow statements and firm value: Evidence from Taiwan

Cited by 25 publications

References 71 publications

Does Herding Bias Drive the Firm Value? Evidence from the Chinese Equity Market

Does Herding Bias Drive the Firm Value? Evidence from the Chinese Equity Market

Banking Industry Specific Determinants of Financial Distress: Empirical Evidence from ASEAN Countries

Determination of Company's Value: A Study with Investment Opportunity as a Moderator Variable

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