Distribution by Scientific Domains
Distribution within Business, Economics, Finance and Accounting

Kinds of Cash

  • free cash
  • future cash

  • Terms modified by Cash

  • cash crop
  • cash dividend
  • cash flow
  • cash flow model
  • cash holdings
  • cash income
  • cash market
  • cash payment
  • cash transfer

  • Selected Abstracts


    Dwight R. Lee
    In a widely cited 1986 article in the American Economic Review, Michael Jensen gave the concept of free cash flow (FCF) a new twist by redefining it as cash flow in excess of that required to fund all projects with positive net present values. Put another way, FCF represents funds available in the firm that managers may choose to hold as idle cash, return to shareholders, or invest in projects with returns below the firm's cost of capital. In redefining FCF in this way, Jensen converted FCF from a measure of economic income and value into a measure of corporate assets available for discretionary, and potentially value-destroying, use by firm managers. And, as he argued in his important article, managers in mature businesses with substantial free cash flow have a tendency to destroy value by plowing too much capital back into those businesses or, often worse, making ill-advised acquisitions in unrelated businesses. Several methods have been developed in financial markets and internal corporate governance systems to discourage managers from wasting FCF. Better monitoring by boards of directors, large ownership blocks, and properly aligned management compensation contracts are all parts of the solution. And the extraordinary increase in stock repurchases in recent years, invariably applauded by investors, is another illustration of the market's success in encouraging companies to address their free cash flow problems. But if the "FCF problem" of the private sector has attracted considerable attention from finance scholars, the problem is even more acute in the public sector, where FCF can be thought of as tax revenue in excess of what is required to finance well-defined and generally accepted levels of public services. Unlike the private sector, in the public sector there are neither measures nor mechanisms by which to monitor and constrain wasteful spending by elected officials. In this article, the authors attempt to measure the costs to taxpayers of government FCF using the case of Alaska, which since 1969 has received a huge windfall of tax revenue from North Slope oil leases. After examining the state's public finances from 1968 through 1993, the authors offer $25 billion as a conservative estimate of the social losses from Alaska's waste of free cash flow during that 25-year period. [source]

    Chemistry and Morphology of Hydrogarnets Formed in Cement-Based CASH Hydroceramics Cured at 200° to 350°C

    Konstantinos Kyritsis
    We have studied the chemistry and the morphology of hydrogarnet crystals produced in cement-based hydroceramic materials at elevated temperatures (200°,350°C) with silica and alumina additions. Such materials lie within the hydrothermal CaO,Al2O3,SiO2,H2O (CASH) system. Hydrogarnet Ca3Al2(SiO4)3,y(OH)4y is the dominant aluminum bearing phase formed and its composition is influenced mainly by the curing temperature and to a lesser degree by the addition of silica. The composition parameter y was estimated by Rietveld refinement of X-ray diffraction (XRD) data. Electron probe microanalysis (EPMA) shows that the hydrogarnets incorporate minor elements such as Fe, Mg, and S. EPMA data confirmed the hydrogarnet composition estimated from XRD. Both octahedral and icositetrahedral forms are observed. The icositetrahedral form is associated with higher minor element content. [source]

    An animal model for chemotherapy-associated steatohepatitis and its prevention by the oral administration of fatty acid bile acid conjugate

    CANCER, Issue 1 2010
    Daniel Keizman MD
    Abstract BACKGROUND: Preoperative chemotherapy for hepatic resection of colorectal liver metastases is associated with the development of chemotherapy-associated steatohepatitis (CASH). This increases the risk of perioperative morbidity and mortality. To the authors' knowledge, an animal model for CASH has not been described previously. It has been established that fatty acid bile acid conjugates (FABACs) prevent the formation of diet-induced fatty liver. The current study was designed to establish an animal model of CASH and to use that model to study the effect of FABACs on its occurrence. METHODS: C57BL/6 mice were given different doses of oxaliplatin and irinotecan. Oxaliplatin administered once weekly at a dose of 6 mg/kg for a total dose of 24 mg/kg was tolerated best and was associated most consistently with CASH. Thus, that dose was chosen as the induction model for CASH. Subsequently, mice were divided into a control group (no treatment), an oxaliplatin group, and a CASH-prevention group, which received oxaliplatin and C20-FABAC at a dose of 150 mg/kg daily. The animals were killed after 28 days. RESULTS: Liver fat content was significantly lower (P < .0001) in the control group (51.63 mg/g) and the prevention group (62.13 mg/g) compared with the oxaliplatin group (95.35 mg/g). This difference was mainly because of the accumulation of liver triglycerides in the oxaliplatin group. CONCLUSIONS: The current results indicated that C57BL/6 mice receiving weekly oxaliplatin can be used as a model for CASH. Oral FABAC therapy reduced the development of CASH in animals that received oxaliplatin. To the authors' knowledge, this report is the first description of a model and a potential preventive treatment for CASH. Cancer 2010. © 2010 American Cancer Society. [source]

    Second Generation CaSH (Camphor Sulfonyl Hydrazine) Organocatalysis.

    Alder Reactions, Asymmetric Diels, Isolation of the Catalytic Intermediate
    Abstract In one step, the well known chiral auxiliary, Oppolzer's camphor sultam, is turned into the new generation camphor sulfonyl hydrazine (CaSH II) organocatalyst. With the primary hydrazine functionality external to the tricyclic structure, CaSH II is active towards ketone substrates in asymmetric Diels,Alder reactions. The iminium intermediate of the catalytic cycle was isolated. When it was put back into the solution reaction system, the same level of yield and stereoselectivity was observed. Based on these observations, we argue that organocatlyst is actually an in situ chiral auxiliary. [source]

    Accounting Conservatism and the Temporal Trends in Current Earnings' Ability to Predict Future Cash Flows versus Future Earnings: Evidence on the Trade-off between Relevance and Reliability

    M41; C23; D21; G38 This research reports that an increasing level of accounting conservatism over the 1973,2005 period is associated with: (1) an increase in the ability of current earnings to predict future cash flows and (2) a decrease in the ability of current earnings to predict future earnings. We also find that usefulness of earnings for explaining stock prices over book values is positively related to reliability but not to relevance. Our results hold for the constant and full samples in both in-sample and out-of-sample analyses and are robust to the use of alternative measures for relevance, reliability, earnings usefulness, and conservatism. Our findings about the relations among conservatism, relevance, reliability, and usefulness suggest a trade-off between relevance and reliability and seem to indicate that the adoption of an increasing number of conservative accounting standards has a possible adverse impact on earnings usefulness through a negative effect on reliability. [source]

    Struggling to Save Cash: Seasonal Migration and Vulnerability in West Bengal, India

    Ben Rogaly
    This article concerns an important but overlooked means by which able-bodied poor people get hold of lump sums of cash in rural West Bengal: seasonal migration for agricultural wage work. Drawing on a regional study of four migration streams, our main focus here is on the struggle to secure this cash by landless households in just one of those streams, originating in Murshidabad District. Case studies are used to illustrate the importance for women in nuclear families of maintaining supportive networks of kin for periods when men are absent. A parallel analysis is made of the negotiations between male migrant workers and their employers, at labour markets, during the period of work, and afterwards. The article then briefly discusses some of the contrasting ways in which remittances are used by landless households and owners of very small plots of land, in the context of rapid ecological change, demographic pressure and growing inequality. [source]

    Implementing cash for work programmes in post-tsunami Aceh: experiences and lessons learned

    DISASTERS, Issue 3 2006
    Shannon Doocy
    Abstract Cash for work (CFW) programmes are utilised in various disaster and emergency contexts and were a prominent component of the tsunami response in Aceh province, Indonesia. This paper describes Mercy Corps' CFW programme, discusses CFW implementation experiences and provides key recommendations for similar programmes in future emergencies. For the majority of CFW participants and their households, CFW was the only source of household income and 93 per cent of household incomes were attributable to it. The CFW programme empowered displaced populations to return to their communities; 91 per cent of participants indicated that CFW facilitated their return. Other reported psychosocial benefits included providing productive activities and giving communities an opportunity to work together. Mercy Corps' experience in Aceh demonstrates that cash disbursements can be safely delivered in a widespread manner in emergencies, and that when implemented on a short-term basis, can have positive impacts at the individual and community level. [source]

    Cash-based interventions: lessons from southern Somalia

    DISASTERS, Issue 3 2006
    Hanna Mattinen
    Abstract Commodity distributions, the predominant relief response, are subject to growing criticism, while donors and humanitarian actors are increasingly viewing cash-based interventions as a viable alternative. This paper aims to contribute to the current debate on cash-based interventions by drawing on the experience of Action Contre la Faim in southern Somalia, where it has implemented cash for work programmes since 2004. The authors conclude that cash-based interventions are a feasible option in complex emergencies as well as in highly insecure environments as long as appropriate modalities are employed and objectives are clearly set in accordance with the needs and the context. Cash as a relief response offers wide-reaching possibilities for the future from both the perspective of the donor/agency and the standpoint of the beneficiary. It enables the beneficiaries to take control of the relief themselves and to adapt it to their individual requirements in a timely manner. [source]

    Financial Innovation and the Transactions Demand for Cash

    ECONOMETRICA, Issue 2 2009
    Fernando Alvarez
    We document cash management patterns for households that are at odds with the predictions of deterministic inventory models that abstract from precautionary motives. We extend the Baumol,Tobin cash inventory model to a dynamic environment that allows for the possibility of withdrawing cash at random times at a low cost. This modification introduces a precautionary motive for holding cash and naturally captures developments in withdrawal technology, such as the increasing diffusion of bank branches and ATM terminals. We characterize the solution of the model, which qualitatively reproduces several empirical patterns. We estimate the structural parameters using micro data and show that quantitatively the model captures important economic patterns. The estimates are used to quantify the expenditure and interest rate elasticity of money demand, the impact of financial innovation on money demand, the welfare cost of inflation, and the benefit of ATM ownership. [source]

    Cash Flow Sensitivity of Investment

    Armen Hovakimian
    G30; G31; G32 Abstract Investment cash flow sensitivity is associated with both underinvestment when cash flows are low and overinvestment when cash flows are high. The accessibility of external capital is positively correlated with cash flows, intensifying investment cash flow sensitivity. Managers actively counteract the variations in internal and external liquidity by accumulating working capital when liquidity is high and draining it when liquidity is low. These results imply that cash flow sensitive firms face financial constraints, which are binding in low cash flow years. Traditional indicators of financial constraints, such as size and dividend payout, successfully distinguish firms that may potentially face constraints, but are less successful in distinguishing between periods of tight and relaxed constraints. These periods are much more clearly separated by the KZ index, which, on the other hand, is less successful in identifying firms that are likely to face liquidity constraints. [source]

    Capital Cash Flows, APV and Valuation

    Laurence Booth
    G31; G32 Abstract This paper examines three different methods of valuing companies and projects: the adjusted present value (APV), capital cash flows (CCF) and weighted average cost of capital (WACC) methods. It develops the appropriate WACC and beta leveraging formulae appropriate for each valuation model, so that given a particular valuation model the correct APV and CCF values can be determined from the WACC value and vice versa. Further it goes on to show when the perpetuity formulae give poor estimates of the value of individual cash flows, even though the overall values are correct. The paper cautions that the APV and CCF models require more information than is currently known, such as the value of the corporate use of debt, and consequently can give misleading results, particularly in sensitivity analyses. [source]

    The Deterring Role of the Medium of Payment in Takeover Contests: Theory and Evidence from the UK

    Philippe Cornu
    The deterring role of the medium of payment in a takeover contest is analysed from the point of view of the bidder. Cash, debt and equity are considered as alternative mediums of payment, and the bidder equilibrium strategies are specified following the Perfect Bayesian Equilibrium requirements for a signalling game. The model predicts notably that cash offers signal a high-valuing bidder, strongly determined to acquire the target firm. Moreover, cash offers deter competition better than debt or equity offers. The theoretical results are validated with data from the UK over 1995,96. [source]


    Trevor Stanley
    Annual reports, including general purpose financial statements, have been adopted as a key mechanism by which public sector entities discharge their accountability. However, there is concern about the complexity of public sector general purpose financial statements and consequently their effectiveness as an accountability mechanism. In Australia, the Queensland government has moved to address this issue in local government authorities by introducing a Community Financial Report as a means of simplifying the financial statements. A feature of this initiative was the lack of prescription given to local government authorities in the preparation of this report. This paper examines the form and content included in Community Financial Reports and also uses a disclosure index to determine the level of disclosure in the reports. The results of this research show that the form and content of the Community Financial Reports varied considerably. There was no definitive style, with each report being unique. The disclosure index revealed low levels of disclosure by local government authorities in the first year of the report as well as a lack of analysis of the Statements of Financial Performance, Position and Cash Flows. As well, there was a significant difference in the disclosures made by rural local government authorities compared with urban local government authorities. The results of this research will be of interest to local government authorities and local government regulators as they aim to provide useful, understandable information for stakeholders. [source]

    Cash Flows and Discount Rates, Industry and Country Effects and Co-Movement in Stock Returns

    FINANCIAL REVIEW, Issue 2 2007
    John Ammer
    F36; G15 Abstract We apply the Campbell decomposition to industry-by-country, national, global industry, and world stock index returns using 1995,2003 data. World, global industry, and country factors are all important for each of the two key components of stock returns: news about future dividends and news about future discount rates. Furthermore, the world component of future discount rates is more important than the idiosyncratic component, while the reverse is true for news about future dividends. Our results are broadly consistent with co-movement in future discount rates arising from perceptions of common elements of risk in international equity markets. [source]

    Cash flow disaggregation and the prediction of future earnings

    ACCOUNTING & FINANCE, Issue 1 2010
    Neal Arthur
    G11; G23 Abstract We examine the incremental information content of the components of cash flows from operations (CFO). Specifically the research question examined in this paper is whether models incorporating components of CFO to predict future earnings provide lower prediction errors than models incorporating simply net CFO. We use Australian data in this setting as all companies were required to provide information using the direct method during the sample period. We find that the cash flow components model is superior to an aggregate cash flow model in terms of explanatory power and predictive ability for future earnings; and that disclosure of non-core (core) cash flows components is (not) useful in both respects. Our results are of relevance to investors and analysts in estimating earnings forecasts, managers of firms in regulators' domains where choice is provided with respect to the disclosure of CFO and also to regulators' deliberations on disclosure requirements and recommendations. [source]

    Accruals quality and corporate cash holdings

    ACCOUNTING & FINANCE, Issue 1 2009
    Pedro J. García-Teruel
    G31; G32 Abstract This Work Uses Panel Data For Firms Listed In The Spanish Stock Exchange Over The Period From 1995 To 2001 To Analyse The Effect Of Accounting Quality On Cash Holdings. The Results Show That Firms With Good Accruals Quality Hold Lower Cash Levels Than Firms With Poor Accruals Quality. This Finding Suggests That The Quality Of Accounting Information May Reduce The Negative Effects Of Information Asymmetries And Adverse Selection Costs, Allowing Firms To Reduce Their Level Of Corporate Cash Holdings. The Results Also Show That Cash Holdings Decrease When Firms Increase Their Use Of Bank Debt And In The Presence Of Cash Substitutes. In Contrast With This, Firms With Higher Cash Flow Hold Higher Levels Of Cash. [source]

    The Public/Private Partnership behind the Cash and Counseling Demonstration and Evaluation: Its Origins, Challenges, and Unresolved Issues

    James R. Knickman
    Objective. To discuss why and how the Cash and Counseling Demonstration came to be designed, implemented, and evaluated through a partnership between the U.S. Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation (ASPE) and the Robert Wood Johnson Foundation (RWJF). Principal Findings. This public/private partnership was created by two colleagues who were motivated by the need for funding to conduct a large-scale demonstration and evaluation, the prestige that both organizations brought to the project, the ability to draw on both organizations' experience and expertise, and the potential to maximize flexibility in the design and implementation of the demonstration. The partnership, which has lasted over a decade and has supported two generations of Cash and Counseling programs, overcame several challenges including getting approval for the project through their respective bureaucracies, managing the decision making process and the ongoing program across the two organizations, dealing with leadership and staff turnover, and reaching consensus on how to apportion credit for the success of the program. Several unresolved issues remain, including how the program gets operationalized within each state, how case management is addressed within the context of a consumer-directed model like Cash and Counseling, how quality is assured in this type of program, and how the Internal Revenue Service views and treats Cash and Counseling and other consumer-directed programs. Conclusion. This public/private partnership is an illustration of how public dollars can be leveraged effectively to examine a pressing policy issue and to produce information that can be translated into better policy and practice. The ASPE/RWJF collaboration made it possible to develop, test, and expand a policy-oriented demonstration project that has become a pivotal strategy in most states' efforts to build their home and community-based service systems. [source]

    Commentary: Cash and Counseling in an International Context

    Joshua M. Wiener
    First page of article [source]

    A Reexamination of the Persistence of Accruals and Cash Flows

    ABSTRACT We reexamine prior studies' conclusion that accruals are less persistent than cash, focusing on two aspects of persistence that are crucial to determining its properties. The first (time specificity) refers to the fact that persistence describes how current-period shocks to income translate into next-period income. Traditional measures of accruals are, however, functions of current- and non-current-period transactions. We show that the inclusion of non-current-period transactions leads to a downward (upward) bias on the persistence of accruals (cash flows). We develop alternative measures of accruals and cash flows that are not misaligned and show that the differential persistence of cash flows over accruals is more than 70% smaller using these measures. The second aspect of persistence is firm-specificity. Specifically, we evaluate persistence using firm-specific estimations and find that more than 85% of firms show no evidence that accruals are less persistent than cash flows. [source]

    AFRICA: UN Relief Planes Need Cash

    Article first published online: 27 AUG 200
    No abstract is available for this article. [source]

    Deflators, Net Shareholder Cash Flows, Dividends, Capital Contributions and Estimated Models of Corporate Valuation

    Saeed Akbar
    First page of article [source]

    Sen measures of poverty in the United States: Cash versus comprehensive incomes in the 1990s

    John Formby
    Recently developed statistical inference procedures for the Sen index and its components , the headcount, income gap and Gini index among the poor , are used to test explicit hypotheses concerning aggregate poverty in the United States for the period 1989 to 1997. Changes in Sen measures of poverty are investigated for cash and comprehensive income using the official poverty line and six additional poverty lines drawn using thresholds set at 50, 75, 125, 150, 175 and 200 percent of the official level. The paper also reports on the effects of using comprehensive income on subgroup poverty rates and on the demographic composition of the poor. [source]

    From Cash to Accrual Budgeting and Accounting in the Public Sector: The Dutch Experience

    M. Peter van der Hoek
    Traditionally, governments used to deploy input-based budgeting systems and cash-based accounting systems. However, these systems do not provide the information that is necessary for a government to operate efficiently and effectively. Therefore, a growing number of countries have already shifted or are planning to shift from cash-based to some form of accrual accounting in the public sector. Usually, the implementation of some accrual-based system is linked to wider financial management reforms including performance management requiring information on cost. This paper focuses on the Dutch experience with the shift from cash-based accounting and budgeting systems to an accrual-based system. [source]

    Johnny Cash and the Paradox of American Identity by Leigh H. Edwards

    Bob Batchelor
    No abstract is available for this article. [source]

    Cash Flow, Consumption Risk, and the Cross-section of Stock Returns

    THE JOURNAL OF FINANCE, Issue 2 2009
    ZHI DA
    ABSTRACT I link an asset's risk premium to two characteristics of its underlying cash flow: covariance and duration. Using empirically novel estimates of both cash flow characteristics based exclusively on accounting earnings and aggregate consumption data, I examine their dynamic interaction in a two-factor cash flow model and find that they are able to explain up to 82% of the cross-sectional variation in the average returns on size, book-to-market, and long-term reversal-sorted portfolios for the period 1964 to 2002. This finding highlights the importance of fundamental cash flow characteristics in determining the risk exposure of an asset. [source]

    Corporate Financial Policy and the Value of Cash

    THE JOURNAL OF FINANCE, Issue 4 2006
    ABSTRACT We examine the cross-sectional variation in the marginal value of corporate cash holdings that arises from differences in corporate financial policy. We begin by providing semi-quantitative predictions for the value of an extra dollar of cash depending upon the likely use of that dollar, and derive a set of intuitive hypotheses to test empirically. By examining the variation in excess stock returns over the fiscal year, we find that the marginal value of cash declines with larger cash holdings, higher leverage, better access to capital markets, and as firms choose greater cash distribution via dividends rather than repurchases. [source]

    "Compassionate" Strategies of Managing Homelessness: Post-Revanchist Geographies in San Francisco

    ANTIPODE, Issue 2 2009
    Stacey Murphy
    Abstract:, After almost 30 years of Federal retraction from anti-poverty initiatives, many American cities have been left with the dual burden of intensified poverty and far fewer resources to combat the problem. At the same time, such devolution has afforded cities the authority to forge poverty policy at the local level, such that the familiar neoliberal imperatives of state retraction and the mobilization of territory for capitalist expansion are frequently tempered by more progressive political imperatives at the local scale. What has thus emerged is a deeply ambivalent policy landscape, of which "kinder and gentler" poverty management strategies are a central feature. Using the example of a recent homeless program in San Francisco, "Care Not Cash", this paper argues that such poverty management strategies, while less punitive than their revanchist predecessors, nonetheless introduce a new set of exclusions to the service delivery system, many of which are obscured by the language of compassion. In order to illustrate those new exclusions, I describe the city's homeless geographies,the public spaces, shelters, service sites, and housing models,that have been produced and reconfigured according to a logic of managing homelessness through the provision of care. [source]

    Prediction of Operating Cash Flows: Further Evidence from Australia

    Ahsan Habib
    This paper examines empirically the relative abilities of current operating cash flows (hereafter OCF) and earnings in predicting future operating cash flows in Australia. It extends prior Australian research on cash flow prediction (Percy and Stokes 1992; Clinch, Sidhu and Sing 2002; Farshadfar, Ng and Brimble 2009) by examining future cash flow predictions for one-, two- and three-year-ahead forecast horizons; incorporating additional contextual variables likely to affect the predictive association between current cash flows or earnings and future cash flows; and comparing cross-sectional versus time series-based prediction models to ascertain the relative superiority of one approach over the other. Regression results reveal that the cash flow-based models are more accurate in predicting future operating cash flows than earnings-based models. This result, however, is moderated by firm-specific contextual factors like firm size, negative versus positive cash flow pattern, cash flow variability and firm operating cycle. Finally, a comparison between cross-sectional and time series approaches reveals that the cross-sectional model outperforms the time series model for both the operating cash flows and earnings models in most of the forecast years. [source]

    Decision Usefulness of Cash and Accrual Information: Public Sector Managers' Perceptions

    Yeny Andriani
    This study examines the usefulness of accrual accounting information for internal decision-making contexts in the Western Australian public sector. Based on questionnaire responses of public sector managers, it was found that accrual accounting is perceived to be more useful than cash accounting in 16 of the 19 decision situations. These results suggest that the perceived usefulness of the accrual accounting system has improved with the passage of time. It may well be that perceptions of the usefulness of information derived from an accounting system will change over time as users gain familiarity and experience with a system. [source]

    Accounting Conservatism and the Temporal Trends in Current Earnings' Ability to Predict Future Cash Flows versus Future Earnings: Evidence on the Trade-off between Relevance and Reliability

    M41; C23; D21; G38 This research reports that an increasing level of accounting conservatism over the 1973,2005 period is associated with: (1) an increase in the ability of current earnings to predict future cash flows and (2) a decrease in the ability of current earnings to predict future earnings. We also find that usefulness of earnings for explaining stock prices over book values is positively related to reliability but not to relevance. Our results hold for the constant and full samples in both in-sample and out-of-sample analyses and are robust to the use of alternative measures for relevance, reliability, earnings usefulness, and conservatism. Our findings about the relations among conservatism, relevance, reliability, and usefulness suggest a trade-off between relevance and reliability and seem to indicate that the adoption of an increasing number of conservative accounting standards has a possible adverse impact on earnings usefulness through a negative effect on reliability. [source]