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We compare the abilities of earnings and cash flows to predict future cash flows. We take a novel approach in that we perform apples-to-apples comparisons of five earnings components measured on an accrual basis with their equivalents measured on a cash basis. On the one hand, we find that the operating profit component (sales net of cost of goods sold and SG&A expense) outperforms its cash-basis equivalent in predicting future cash flows. On the other hand, we find that the depreciation expense and non-operating income components underperform their cash-basis equivalents in predicting future cash flows. Additionally, we fail to find significant differences between the predictive abilities of the interest expense and income tax expense components and their cash-basis equivalents. The inconsistent findings across earnings components suggest that unequivocal all-or-nothing conclusions on the relative predictive abilities of earnings and cash flows are unwarranted. [ABSTRACT FROM AUTHOR]

Currently, unstable behavior is perceived in the economy of Ecuador, where country risk has increased and is reflected in the country’s public-private institutions. This context leads to the general objective of proposing educational credit policies in the collection process for decision making in private higher education institutions. The research is descriptive-explanatory with a qualitative approach, supported by analysis-synthesis and documentary analysis methods. Theoretically, it delves into the problems that affect credit risk in private higher education institutions, marked by the level of acquisition-indebtedness of families when deciding the continuity of their children’s studies; Likewise, it delves into the educational field when considering the high percentage of student dropouts. The result was confirmed in the authors’ criteria (Acuña & Chavarry, 2020; Arellano & Cubi, 2013; Barr, 2006, 2008; Barr & Crawford, 2005; Brachfeld, 2013; Ettinger & Goliet, 2000; Global Ratings, 2020; Morales & Morales, 2014; Pérez Barral et al., 2020; Pérez Barral et al., 2022) consulted, determining internal-external factors associated with the increase in credit risk in these universities, confirming the need to propose policies for the collections process and decision making. [ABSTRACT FROM AUTHOR]

The life cycle of an artificial intelligence model is the object of research. The purpose of the study is to develop a model life-cycle methodology that describes the economic content of the investment process in artificial intelligence technology. During the study, both general scientific methods such as analysis, synthesis, comparison, abstraction, induction and deduction were used, as well as project methodologies of the life-cycle, employed as the basis for the value creation life-cycle of the model. The analysis was based on identifying the necessary stages of model development in terms of the CRISP-DM methodology and determining the features of each of them in terms of cash flows. Modified versions of the model life-cycle containing risk assessment, including model risk, were also taken into account. In the process of research, the proposed generalized model life-cycle methodology was specified for a specific AI technology — large language models. As a result of the study, the author proposed a three-stage model. The possible optionality between the stages and the characteristics of cash flows are described. It was concluded that an investment project for the development of AI contains several real options — abandonment, reduction, expansion and replacement. For large language models, the life cycle structure and possible optionalities are preserved. The peculiarity is that the value creation process involves cash flows from different areas of application of the model in business processes. The results of the study are of practical importance for medium and large businesses engaged in the independent development of AI models and/or applying them to their business processes. The proposed concept of the model life-cycle can also be used to develop a methodology for evaluating investments in AI using real options.

Although financial statements are extremely important to investors in decision-making processes, their reliability can be affected by earnings management (EM) practices, which involve manipulating financial reports in order to achieve managerial benefits. This study explores the relationship between earnings management and firm valuation, based on accounting information's predictive value, specifically investigating how EM influences the value relevance (VR) of earnings on share price. The research focuses on a sample of audited companies listed on the Bucharest Stock Exchange (BSE) between 2019 and 2021, comprising 62 entities. Using regression analysis, we explored the importance of accounting information for investors following Ohlson's research and examined the relationship between EM and VR based on Jones's model. The findings indicate that earnings significantly impact stock prices, highlighting their value relevance in the Romanian stock market. However, the practice of earnings management reduces the value relevance of earnings because it decreases the reliability of the accounting information. The main contribution of this analysis is to provide a fresh perspective on earnings management (EM) within the BVB framework by highlighting its pivotal role in shaping the motivation and behavior of corporate managers. [ABSTRACT FROM AUTHOR]

Today, information users are interested in disclosing non-financial information regarding activities carried out within the scope of corporate social responsibility (CSR). In this context, the reflection of CSR activities, which can increase company reputation and stakeholder interest, on financial performance is important. The research aims to determine the relationship of cash flows with firm value at optimal and excessive CSR levels. The research uses data on companies with ESG scores in Türkiye to determine the impact of CSR activities on firm value. The research applies panel data analysis to determine the impact of optimal and excessive CSR activities on firm value. The research points out that optimal CSR levels have a negative effect on firm value, while excessive CSR levels have a positive and significant effect. Additionally, the results reveal that cash flows positively moderate the relationship between excessive CSR levels and firm value. The research findings support that cash flows positively moderate the relationship between firm value and CSR at excessive levels. The research emphasizes the moderating role of cash flows by distinguishing between excessive and optimal CSR activities, in line with the literature on the relationship between CSR levels and firm value. [ABSTRACT FROM AUTHOR]

This study examines the effects of non-additivity valuations on cash flows and sales growth by using the Choquet fuzzy approach as a pooled non-additive integral. The study targets 62 parent companies with 322 subsidiaries in the Tehran stock market from 2011 to 2019. The study divides firms' assets into four categories (inventories, receivables, fixed, and long-term investments). It uses the Choquet integral's properties to determine the firms' total non-additivity values. The Choquet integral approach used in this study considers the synergy of a set's componential factors in different measurements by considering and implementing the weights and coefficients of the elements. The results indicate that while the market valuation of companies (based on non-additivity valuations) has no significant correlation with their operating cash flows, it has a positive correlation with their sales growth, which could be attributed to the synergy created by the business combination of the parent companies with their subsidiaries. Moreover, the findings show a significant correlation between sales growth and the market price-to-book ratio as a simple approach to measuring a company's performance. However, the results suggest that non-additivity valuations offer a better estimation in measuring the efficiency of companies than market price-to-book ratio-based approaches. Indeed, the valuations of companies are determined based on their abilities in using their resources compared to similar companies in the same industry when they use non-additivity valuations. These findings are expected to be very helpful for potential investors and shareholders. [ABSTRACT FROM AUTHOR]

Basic management approaches are proposed for the risks that business entities may encounter when investing in Russian industry in the digital era. Possible means of reducing exposure to risks and indeterminacies associated with the formation of a digital space and threats to digital security are outlined. Assessment of the risks affecting project efficiency is considered. [ABSTRACT FROM AUTHOR]

In this paper, we construct a market equilibrium model to explain why firms repurchase their shares, the popularity of share repurchases compared to dividends, and the preference of share repurchases by institutions and corporate investors despite their tax disadvantage to corporate investors. Share repurchases help shareholders diversify their portfolios, provide firms with flexibility in distributing cash to their shareholders, help institutions and corporate investors take controlling positions in firms, and lead to a rise in share price, benefiting both selling and not selling shareholders through a rise in share price and firms through a low cost of capital. [ABSTRACT FROM AUTHOR]

Insiders are known to trade when they believe their companies are undervalued and when they have access to confidential information regarding future cash flows. This paper investigates the impact of idiosyncratic risk on cash holdings using a dataset of Chinese-listed firms from 2008 to 2020; our empirical results reveal that cash holdings are positively correlated with idiosyncratic risk, and the mediation effect of investment is proved. We further investigate whether insiders at firms with high idiosyncratic risk (associated with financial irregularities and greater private information in prices) receive larger returns on their trades than insiders at companies with lower idiosyncratic risk based on these findings. We show that idiosyncratic risk enhances the profitability of corporate transactions (insider purchases and sales, as well as share repurchases). Corporate transactions are contrarian, and the magnitudes of returns before and after trades grow as idiosyncratic risk increases. In this study, we conduct empirical analysis in two parts. In the first phase, we look at how the level of discretionary idiosyncratic risk affects enterprises' cash holding strategy. In the second phase, we investigate the consequences for business investments of the link between discretionary idiosyncratic risk and cash holdings. [ABSTRACT FROM AUTHOR]

Copyright of Opuntia Brava is the property of Universidad de Ciencias Pedagogicas de Las Tunas, Centro de Documentacion e Informacion Pedagogica and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The relevance of the chosen topic arises from the growing need to explore the automation of treasury systems in enterprises, given the rapidly changing external and internal environments of companies. This study investigates both the theoretical and practical aspects of automation, focusing on how new systems can adapt flexibly to these dynamic conditions. The research is rooted in a detailed examination of methodologies for change management during the implementation of automated treasury systems, ensuring that such transitions align with broader business strategies. The study’s methodology includes a thorough analysis of existing theoretical frameworks in the field of cash flow system automation, particularly in treasury management. Additionally, it draws on practical experiences from companies such as Severstal, JSC USC, and SMART-HOLDING, which have implemented systems like 1C, Finance 360°, and the integrated "Treasury" project. These cases provide valuable insights into the challenges and effective solutions for developing efficient cash flow management systems. The findings demonstrate that automated treasury systems are crucial for companies to manage their cash flows effectively. They enable firms to maintain control over key economic indicators while providing the flexibility needed to respond to fluctuating external and internal factors. Through the use of sophisticated methodological tools, these systems support strategic financial management and help companies stay competitive in a fast-paced environment. The conclusions of this study are highly relevant for students and professionals engaged in the study or practice of cash flow management and treasury operations in various organizational settings. The insights offered emphasize the importance of a well-implemented treasury automation system in ensuring financial stability and achieving long-term business success. Furthermore, the study presents practical recommendations for effectively implementing and adapting these systems to meet the evolving demands of the global business landscape.

This research investigates the nexus between the corporate life cycle (CLC) and accrual-based earnings management (AEM) and real earnings management (REM) practices. Companies listed on the main segment of the Bucharest Stock Exchange between 2007 and 2021 are analyzed through fixed effects and random effects models. The regression analysis uncovers that earnings management practices vary based on the developmental stage of the company. In the introduction stage, Romanian companies tend to prefer AEM techniques, while in the growth and maturity phases, REM practices are more prevalent. The conditions in which firms operate, the pressure from the capital market and the discretion over costs characteristic of each stage of development explain the preference for a certain method of earnings management. Overall, this investigation helps clarify CLC's role in adopting earnings management techniques (AEM/REM) and signals the need to pay particular attention to the quality of financial reporting of companies in the early stages of development. The findings hold significance for auditors, financial analysts, investors, lenders, and regulators alike.

The COVID-19 pandemic has had a negative impact on the socio-economic development of countries, in particular on the labor market. To counteract large-scale challenges, it is necessary to create a labor market monitoring system that allows identifying the occurrence of potential negative events at an early stage. The article suggests the author's approach to calculating the indicator of labor volatility. To calculate the labor volatility indicator, correlation analysis is used, as well as normalization of the selected indicators. By calculating the geometric mean and the subsequent inverse indicator, the achieved value of the labor volatility indicator is estimated. The approbation of the developed methodological approach was carried out for the period from 2019 to 2021. The regions of Russia were divided into two groups from the position of assessing the growth of volatility of the interaction of economic entities in the labor market. The positive dynamics in terms of reducing the level of volatility of labor relations, for example, was demonstrated by the Ivanovo region. Negative dynamics in terms of the growth of the volatility of labor relations was observed in the Astrakhan region. The developed indicator of labor volatility makes it possible to determine the emergence of non-standard practices of interaction between economic entities, to identify areas in which a crisis could potentially occur. The values of the labor volatility indicator can be used to assess the effectiveness of the instruments of state influence. If a decision is made on the practical use of the proposed methodological approach, it is necessary to increase the frequency of evaluation of the indicator of labor volatility. To do this, it is advisable to use operational data, in particular information about cash flows in the labor market.

The purpose of the study is to develop the theory of hedging, generalize approaches to the formation of effective risk hedging strategies, and provide recommendations for the implementation of international banks' experience in Ukrainian practice. It is proved that in the process of choosing effective strategies, it is advisable to distinguish three types of financial risk hedging: a) operational hedging (balance sheet) to ensure operational flexibility; b) market hedging (external), which involves the use of derivatives as instruments to hedge profit volatility; c) contract hedging (contractual clauses, embedded derivatives. Based on the analysis of the reports of 250 banks, it was found that Bank of America, JPMorgan Chase & Co., Goldman Sachs, Morgan Stanley, and Citigroup are the market makers in the most developed US futures market. Horizontal analysis of the balance sheets of these banks showed that although the share of derivatives designated as hedging instruments is insignificant (less than 1%) relative to term contracts recognized as trading instruments, the hedging effect is significantly higher than the gains on the trading portfolio. It was found that in international practice, the dominant direction is the hedging of interest rate risk (the share of which varies between banks from 42.52% to 61.26%), in the structure of hedging instruments, interest rate swaps prevail. The share of currency derivatives varies from 18.67% to 41.45%. Interest rate risk is hedged by over-the-counter bilateral term contracts for active operations, currency risk hedging equally covers the risks of passive and active operations. The regression analysis revealed that private credit and trading assets have an inverse effect on regional hedging exposure, and debt instruments have a direct effect. The study provides a basis for assessing the potential of using innovative risk-hedging instruments by Ukrainian banks. [ABSTRACT FROM AUTHOR]

The objective of the study is to justify the prohibition of discounting deferred taxes by harmonising their essence with the concept of fair value. The work is theoretical in nature, standard scientific methods have been used, including the collection of theoretical information, formalisation, as well as analysis, synthesis, observation, and comparison. This article summarizes the results of research in the field of deferred tax discounting over the past 60 years and attempts to reconcile the essence of it with the concepts of fair value. The issues of deferred tax discounting have long been the subject of scientific research and still remain unresolved. In the second half of the twentieth century, the key problem was the choice of an acceptable discount rate against the background of lack of understanding of the essence of deferred taxes. Subsequently, the vector of research has changed towards determining the economic value of deferred taxes without reference to the theory of deferred taxation. The author proved that under the concept of fair value, deferred tax liabilities (DTL) do not need to be discounted because the assessment takes into account the minimum economic benefits generated by the asset as of the reporting date and under prevailing market conditions. It is shown that the balance sheet reflects the theoretical relationship between deferred tax liabilities and current income tax liabilities. The conclusion is made about the modifiability of deferred tax liabilities into current liabilities in terms of static accounting ideology while observing the going concern principle. The problems of applying valuation at fair value measurement that does not take into account the current tax position of the organization; as well as the place of deferred taxes in the capital accounting equation are raised. The results of the research have theoretical significance and can be used within the framework of improvement of the accounting legislation.

Although financial statements are extremely important to investors in decision-making processes, their reliability can be affected by earnings management (EM) practices, which involve manipulating financial reports in order to achieve managerial benefits. This study explores the relationship between earnings management and firm valuation, based on accounting information’s predictive value, specifically investigating how EM influences the value relevance (VR) of earnings on share price. The research focuses on a sample of audited companies listed on the Bucharest Stock Exchange (BSE) between 2019 and 2021, comprising 62 entities. Using regression analysis, we explored the importance of accounting information for investors following Ohlson’s research and examined the relationship between EM and VR based on Jones’s model. The findings indicate that earnings significantly impact stock prices, highlighting their value relevance in the Romanian stock market. However, the practice of earnings management reduces the value relevance of earnings because it decreases the reliability of the accounting information. The main contribution of this analysis is to provide a fresh perspective on earnings management (EM) within the BVB framework by highlighting its pivotal role in shaping the motivation and behavior of corporate managers.

The research dealt with hedging accounting in light of the application of the financial reporting standard IFRS9. Hedging came in this standard, which was an alternative to the previous financial instruments standard IAS 39. Hedging is to confront the risks that economic units may be exposed to in the instability of financial markets, and its purpose is to reduce or reducing these risks and relying on banks to distribute their risks through their adoption of financial instruments. Therefore, this research came to address the issue of hedging cash flows generated from these financial instruments in light of the application of Financial Reporting Standard 9.

The purpose of the study is to develop the theory of hedging, generalize approaches to the formation of effective risk hedging strategies, and provide recommendations for the implementation of international banks' experience in Ukrainian practice. It is proved that in the process of choosing effective strategies, it is advisable to distinguish three types of financial risk hedging: a) operational hedging (balance sheet) to ensure operational flexibility; b) market hedging (external), which involves the use of derivatives as instruments to hedge profit volatility; c) contract hedging (contractual clauses, embedded derivatives. Based on the analysis of the reports of 250 banks, it was found that Bank of America, JPMorgan Chase & Co., Goldman Sachs, Morgan Stanley, and Citigroup are the market makers in the most developed US futures market. Horizontal analysis of the balance sheets of these banks showed that although the share of derivatives designated as hedging instruments is insignificant (less than 1%) relative to term contracts recognized as trading instruments, the hedging effect is significantly higher than the gains on the trading portfolio. It was found that in international practice, the dominant direction is the hedging of interest rate risk (the share of which varies between banks from 42.52% to 61.26%), in the structure of hedging instruments, interest rate swaps prevail. The share of currency derivatives varies from 18.67% to 41.45%. Interest rate risk is hedged by over-the-counter bilateral term contracts for active operations, currency risk hedging equally covers the risks of passive and active operations. The regression analysis revealed that private credit and trading assets have an inverse effect on regional hedging exposure, and debt instruments have a direct effect. The study provides a basis for assessing the potential of using innovative risk-hedging instruments by Ukrainian banks.

Research in corporate financial reporting identifies two important roles of accounting accruals. First, accruals smooth fluctuations in operating cash flows. Second, accruals allow recognition of losses in an asymmetric timely manner. While these two roles imply different relations between individual accrual components and operating cash flow news, prior research often focuses on the properties of aggregate accruals. We investigate the role of individual accrual components and identify asymmetry in the relation of investment with operating cash flow news as a confounding factor. We show that this investment factor operates through depreciation and amortization accruals, which typically account for the bulk of aggregate accruals. Overall, our article demonstrates the importance of adopting a granular approach to identifying the different roles of individual accrual components.

Research in corporate financial reporting identifies two important roles of accounting accruals. First, accruals smooth fluctuations in operating cash flows. Second, accruals allow recognition of losses in an asymmetric timely manner. While these two roles imply different relations between individual accrual components and operating cash flow news, prior research often focuses on the properties of aggregate accruals. We investigate the role of individual accrual components and identify asymmetry in the relation of investment with operating cash flow news as a confounding factor. We show that this investment factor operates through depreciation and amortization accruals, which typically account for the bulk of aggregate accruals. Overall, our article demonstrates the importance of adopting a granular approach to identifying the different roles of individual accrual components.

Copyright of GeSec: Revista de Gestao e Secretariado is the property of Sindicato das Secretarias e Secretarios do Estado de Sao Paulo (SINSESP) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article compares the value relevance of information contained in financial statements, namely earnings, operating cash flows and book value of equity, in the V4 countries (the Czech Republic, Hungary, Poland and Slovakia). Using a dataset of 604 firm-year observations for the period 2005–2017, we identify higher value relevance of accounting information in the Czech and Hungarian capital markets than in Poland. The financial statements of the Slovak listed firms are found not to present value relevant information. The most relevant metric on the Prague and Budapest stock exchanges are earnings. For the Czech Republic and Poland, we find that investors value between-period changes more than absolute amounts for the period. Finally, the Czech and Hungarian markets exhibit a considerable improvement in value relevance of accounting information approximately five years after adopting the IFRS. [ABSTRACT FROM AUTHOR]

In the evolving landscape of digital technology and global economic integration, the pivotal role of electronic business (E-business) in transforming traditional market structures and establishing new commercial paradigms has been increasingly recognized. This study focuses on the appraisal of E-business development amidst ongoing digitalization. Central to the investigation is the formulation of a contemporary information system model for Ebusiness evaluation. The research delineates the essential factors influencing E-business progression and identifies potential improvement areas. The primary subject of this analysis encompasses the modern information and technological systems underpinning electronic business operations. Evidence suggests that the technical state of a fundamental intangible asset, namely the E-commerce website, considerably influences cash flow generation. Notably, site visitors, whether organic, referred, or paid, do not uniformly convert into customers. This study establishes various criteria for the model's construction and introduces a comprehensive metric: an integral coefficient reflecting the website's technical condition, which directly affects visitor-to-customer conversion rates. A novel methodology for assessing internal factors impacting E-business cash flows has been developed. This approach enables the evaluation of an enterprise's technical features and the identification of deficiencies impeding potential sales, using the integral site condition coefficient. This research makes a significant contribution by presenting an innovative information model for E-business assessment in the tourism sector. [ABSTRACT FROM AUTHOR]

Although financial market participants are increasingly interested in the financial value of unstructured qualitative information regarding the prospects of a firm, empirical evidence remains sparse on the properties of qualitative content in consumer product reviews and their capital market implications. Using a broad sample of consumer reviews posted on Amazon.com, I examine whether the linguistic tone of aggregate consumer product reviews conveys information that is associated with firms' sales, earnings, stock returns and risk. I find that aggregate review tone successfully predicts a firm's forthcoming quarterly sales. Moderating analyses show that this predictability is stronger for firms operating in a highly competitive environment. I further find that review tone predicts a firm's quarterly earnings surprises, abnormal stock returns and risk. A path analysis shows that the effect of review tone on stock prices is partially channeled through its effect on firms' earnings. I finally find that negative review tone is more informative and useful than positive tone in predicting a firm's fundamentals. Importantly, these results hold after controlling for other review characteristics, including review rating, review volumeand review dispersion. Overall, my findings highlight the importance of considering the tone of consumer reviews when evaluating a firm's prospects and value. [ABSTRACT FROM AUTHOR]

Cash flows are a convenient source of operational information for analyzing the state of the economy. Obtaining this information will ensure the use of operational regulatory tools to achieve the goals of economic security. The purpose of the study is to conceptualize the problem of creating a domestic classifier of cash flows, which acts as an early identification tool for crisis phenomena in the economy. The authors systematize foreign and domestic approaches to the creation of a classifier of cash flows, the organization of monitoring of the volatility of cash flows. The article reveals the differences between the classifier of payments and cash flows, identifies the key limitations associated with the creation of the classifier. There are three levels of cash flows: individual, group and territorial. These levels can form the basis of the created cash flow classifier. The authority to monitor cash flows should be assigned to the Bank of Russia. Considering the prospects of expanding the capabilities of the Bank of Russia's payment system and the introduction of the digital ruble, the Bank of Russia can collect and promptly analyze information about cash flows. The object of monitoring is the level of volatility of cash flows. Subsequently, the information received can be automatically transmitted to the relevant authority for the use of state regulation tools.

The existence of a research gap compared to previous studies related to the effect of the relationship between institutional ownership and investment opportunity set on firm value in Indonesia is interesting to review. This study aims to reveal the relationship of these influences by adding capital structure as a moderating variable that serves to strengthen it against firm value. The research variables are the ratio of market value to book value of assets, institutional ownership, debt-to-equity ratio and free cash flow. The research timeframe is 2019–2021, using data taken from companies in the manufacturing sector in the Indonesian Capital Market (IDX). Data sampling was carried out using the purposive sampling method. Data analysis to determine the relationship of these effects and hypothesis testing were performed using multiple regression. The empirical research findings indicate that the investment opportunity set has a positive effect on increasing firm value, while capital structure has a negative effect on decreasing it. Institutional ownership and free cash flow do not determine firm value, so free cash flow does not serve as a control variable. The main finding of this study is revealing that capital structure plays a role in strengthening the effect of the relationship between investment opportunity sets on firm value. Acknowledgments This research is an independent study that is not funded by donor agencies.

The article examines the essential characteristics of business planning and business plans, defines their role in the system of enterprise planning, the functional purpose and place of business plans in the process of preparing and promoting business projects. On the basis of theoretical studies of the concept of "entrepreneurship", it was determined that practically all activities of any commercial structure (organization whose purpose is to make a profit) in the market economy represent entrepreneurship. It was concluded that in order to build a clear system of enterprise plans, the term "business planning" should be used only in the context of developing business plans and consider it (business planning) as an independent type of technical and economic planning, along with tactical and strategic planning. The article examines the essence and relationship of the categories of "project", "business project" and "business plan". Various points of view regarding the important differences between a business plan and a business project are analyzed. A classification of business plans for business objects is given. The conducted analysis showed that the development of business projects largely determines the effectiveness of business planning as a tool for ensuring the economic security of enterprises.

The paper investigates the capital structure of companies listed on the Bucharest Stock Exchange (BSE) from an organizational life cycle perspective, seen as a determinant of the decisions to finance operations and growth. For this purpose, the life cycle is measured according to the cash flows patterns. Motivated by the pecking-order theory (POT) and carried out on a sample of 59 companies in the period 2010-2020, the study uses a Least Squares Dummy Variable (LSDV) panel data model and shows that listed Romanian companies resort more to bank financing in the initial stages of their life cycle. As they reach the maturity and shake-out stages, companies reorient towards internal financial resources and equity issuance, which is in line with the POT. Furthermore, the age of companies has a rather weak effect on the financial leverage, and its effect diminishes as firms age. The results also confirm the importance of having a high level of tangible fixed assets as collateral for bank loans, but also the significant role of the industry and geographical positioning on the degree of external financing.

The article is devoted to solving the problem of improving the efficiency of the adaptive management system of an agricultural enterprise on the basis of controlling. The necessity of introducing a management system aimed at ensuring a phased management of enterprise processes, taking into account the specifics of functioning with a high level of efficiency, flexibility and efficiency, has been substantiated. A retrospective analysis of the formation and development of the control system in industrialized countries has bee carried out. The results of the analysis made it possible to highlight the main concepts of controlling in accordance with their orientation. The peculiarities of the organization of the controlling system at agricultural enterprises of Ukraine in the conditions of seasonal market fluctuations have beenare determined. Growing crops, unlike the production of products in other industries, has such a feature as seasonality. The seasonal nature of production of agricultural enterprises determines the parameters of the activities of industries that produce and maintain agricultural products, harvest, preserve, process and sell agricultural products. Seasonal fluctuations have a direct impact on the intensity of the use of financial, material and technical, labor, energy and other types of resources of agricultural enterprises in certain periods of time during the calendar year. Thus, they impede the effective planning of the financial and economic activities of agricultural enterprises. This requires the improvement of the management system of an agricultural enterprise based on controlling to balance financial flows between all links of the agroindustrial complex. A mathematical model describing time parameters has been presented. Within the framework of the presented model, controlling actions aimed at ensuring the basic conditions for the functioning of an agricultural enterprise and preventing the phenomenon of shortage of funds during the “low” market period have been proposed. The basis for the construction of the model is the structure and objective proportions that determine the ratio between monetary funds and flows of funds of the enterprise of certain periods of its production and sales activities in the short term. The model allows timely detection of problems and making appropriate corrections in management decisions in order to minimize the destabilizing influence of environmental factors and eliminate unwanted deviations. Controlling actions are formed in the form of reports for the purpose of further use in the process of implementing the developed business processes.

AbstractThere is still controversy regarding the relevance of cash flow versus accruals. Relevant information can be assessed in multiple ways, including its value relevance and predictability. This paper then compares the value relevance and predictive value of accruals and cash flow measures to determine entities’ stock value and future cash flows, respectively. The data was obtained from 484 consolidated annual reports of 121 companies listed on Euronext between 2018 and 2021. Data assessment used a linear regression model. The findings suggest that cash flow measures have a more significant influence on stock prices than profit or loss (about 40% versus 20%, based on the models’ explanatory power). Furthermore, historical cash flows are proven to be a better predictor of future cash flows than profit or loss (90% versus 80%). Furthermore, neither accrual nor cash flow measures forecast future profit or loss significantly (below 35% in all cases). Findings also indicate a reduced capability of accrual or cash flow measures to forecast future profit or loss. This paper contributes to the ongoing debate on the relevance of cash flow versus accrual measures, which still presents differing conclusions. As part of its innovation, it compares profit or loss with multiple cash flow measures, such as non-GAAP measures and the concept introduced by the IASB in its exposure draft for operating cash flow. Additionally, the study examines the potential impacts and benefits of changes proposed in the IASB’s exposure draft, including how they can affect stock prices and forecast future cash flows.

This research mainly focuses on investigating the role of the interactions between cash flows, oil price uncertainty, and geopolitical risk on corporate cash holdings across 42 countries. We also investigate whether such interactions may differ across firm and country characteristics. The main results show that the interactions between cash flows interacting with oil price uncertainty and geopolitical risk have a positive correlation with corporate cash holdings. Additionally, the nexus between the interactions and corporate cash holdings is more prominent for financially constrained firms, firms located in highly competitive industries, or Asia and Europe. The main policy implication based on our findings is that policymakers should exercise caution and take into account the effect of the uncertainties of oil price movement and geopolitical risk when designing policies related to corporate decision makings. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the study is to investigate the association of earnings and cash flows with stock prices and returns, and the impact of regulatory changes on the value relevance of accounting numbers. Design/methodology/approach: The authors examine a sample of non-financial firms listed on the Belgrade Stock Exchange from 2005 to 2018 and use three regression models – price, return and differenced. Findings: The authors find evidence that accounting earnings are more value relevant than cash flows. The authors also find negative relation of earnings changes with stock returns and argue that this is due to the lower persistence of negative earnings levels and changes. Finally, the authors find that the value relevance of accounting information in Serbia increases after the improvements in capital market regulation. Research limitations/implications: Given the empirical focus on a transition economy, the widespread applicability of the study is limited. The findings, however, call for more research on transition economies to better understand the functioning of capital markets and the way information from financial statements is incorporated into stock prices. Practical implications: The results imply that policymakers in transition economies should improve the accounting and capital market regulation to provide better investor protection and to improve the capital market conditions. Originality/value: The authors add to knowledge about the value relevance of accounting information in emerging and transition economies. The results could be of interest to standard setters in their efforts to better understand and improve the quality of accounting information in emerging and transition economies. [ABSTRACT FROM AUTHOR]

The article is devoted to an innovative approach to risk management in the financial sphere. An analysis of scientific research on financial riskology and related sciences was carried out. A well-founded author's approach and developed factor models regarding the systematic combination of strategic, tactical and operational financial risk management; proposed factor models and criteria for evaluating the effectiveness of financial strategic, tactical and operational decisions. For the first time, the concept of the capitalization of authorized capital and the speed index of its capitalization was introduced as indicators for measuring the effectiveness of financial decisions. Reasoned options for management behaviour in certain financial situations, taking into account their riskiness. Thanks to factor modelling, the relationship between the capitalization of the authorized capital and the current financial indicators, namely the profit of the enterprise, taking into account the procedure of its distribution, was determined. In operative financial management, emphasis is placed on the fact that funds, according to their rational distribution, should be directed: first to the repayment of external current obligations, and then to finance current internal needs. In order to cover external current liabilities, it is necessary to carry out appropriate monitoring and refinancing of receivables, and in order to financially support current internal needs, it is necessary to form an insurance money fund of the appropriate size; these two processes must take place in a complex and parallel manner. The practical introduction of systemic financial risk management in a combination of its components: strategic, tactical and operational - will allow to improve the management of the financial sphere, increase its efficiency and will meet the interests of both the owners of the enterprise and its managers. [ABSTRACT FROM AUTHOR]

Copyright of Panorama Económico (1870-2171) is the property of Economic Panorama Magazine / Revista Panorama Economico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)