Search Results for free-cash-flow
Abstract
Cash management, in general, is one of the most important matters that management should follow up, due to its effective role and importance in improving the financial performance of companies. The research aims to measure and know the impact of free cash flow on the market value of business establishments. A modern measure of their financial performance by mentioning its data in a special list like the rest of the lists. The research came to show the impact of free cash flow on the market value of business establishments by demonstrating the importance of using free cash flow indicators in industrial companies listed in the Iraq Stock Exchange by conducting an applied study that seeks to reach a predictive model for the market value of these companies, and represents the research community in industrial companies. Listed in the Iraq Stock Exchange, and the research sample was represented in (6) companies that were selected from among (19) companies listed in the Iraq Stock Exchange, due to their compatibility with the research requirements and the period from (2004-2019), and a set of indicators were used. Financial [earnings before taxes and interest (1-tax) + amortization and depreciation - capital expenses), (closing price multiplied by the number of shares)] as well as using a simple regression model to find out the effect of the independent variable on the dependent variable individually and for each company and using the statistical program ( Minitab 17), and the research concluded that there is a statistically significant effect of free cash flow on the market value of business establishments in general in the model, as well as that there is no effect of free cash flow on the market value Protective for business establishments in some companies.
Abstract
Abstract
This study tests the effect of capital costs on the relationship between free cash flow (FCF) and market value. The study selected twenty-six corporations that were listed on the Jordan securities market from 2010 to 2019. The FCF is an independent variable, cost of capital is a mediation variable (proxy of WACC), and market value added (proxy of firm’s value) is a dependent variable. Baron & Kenny's methodology and the Sobel-test were used to analyze the data of the four hypotheses, including the mediation effect of capital costs on FFC & MVA. Based on the Sobel test results, there is a partial mediation effect of the cost of capital between the free cash flow and the market value added of the firm, and the free cash flow is positively related to the market value added. Therefore, FCF has the capability to send positive signals to financial market participants about the firm's performance.
Keywords: - Free Cash Flow (FCF), Weighted Average Cost of Capital (WACC), Market Value Added (MVA), Mmarket Value of Equity (MVE), Capital Asset Pricing Model (CAPM), Beta Coefficient (β).
Abstract
This research aims to analyze the impact of bank Credit risk as an independent variable on the returns of investors represented by the free cash flow available to the owner of Common stocker as a dependent variable. To achieve this goal, we used a sample of (20) Iraqi Commercial bank for the period from 2014 - 2020. using quantitative risk metrics, the study found correlations and adverse influence between two of dependent variables and positive correlations and effect with the other variables.