U.S. multinational corporations (MNCs) hold significant amounts of cash abroad. Using a handcollected sample of large U.S. MNCs, we find that the percentage of cash trapped overseas has a significantly negative impact on the market value of a firm’s cash holdings. Such negative effect is more pronounced when firms are subject to higher repatriation tax rate, when firms have higher costs of rais...

This paper investigates the compensation usefulness of accounting variables along several important dimensions (accruals-based vs. cash-flows based, non-return vs. return, and gross vs. net measures), as well as the time series variation of performance measures in CEO bonus plans, using a unique panel of manually collected CEO bonus determinants spanning fiscal years 2006 to 2011. We document t...

after-tax cash flows to differ from its before-tax cash flows. To estimate the future cash flows that are to be generated by a proposed foreign project (such as the establishment of a new subsidiary or the acquisition of a foreign firm), MNCs must first estimate the taxes that they will incur due to the foreign project. This appendix provides a general background on some of the more important i...

In order to obtain SEO (Secondary Equity Offering) qualification, china listed companies would do different levels of earnings management centering on accounting earnings indicators. While previous researches on earnings management are mainly focused on enterprise management authorities’ accruals manipulation. In fact, in order to avoid losses, the user of statements would pay more attention to...

This paper analyzes the factors influencing cash flows and divides them as certainty factors and uncertainty factors; it mainly discusses the uncertainty factors causing change of cash flow. For the characteristics of uncertainty of cash flows in real estate project, we adopted probability theory and mathematical statistics to balance and estimate the cash flows. Then the computer simulation me...

This paper analyzes how human capital and economic uncertainty affect capital structure and managerial compensation. We model a competitive industry where wealth constrained managers provide human capital that can be transferred across firms, and where equityholders give managers access to the physical assets of the firm. Equityholders and managers bargain for the firm’s stochastic free cash fl...

in this paper disposition effect, selling winners and holding losers, in tehran stock exchange (tse) investment companies and its effect on these companies’ cash flows and performance using odean model has been reviewed and investigated. research findings show that the realized profit ratio is %19 higher than the realized loss ratio in all of investment companies in tse. this mean there is a be...

I analyze cash flow characteristics of listed infrastructure investment companies and funds and compare this unique infrastructure sample with a noninfrastructure reference group. I confirm that infrastructure investment provide more stable cash flows than non-infrastructure investments. However, I do not find that investors positively value this cash flow stability. Instead, more volatile cash...

This article describes an expert system for cash flow analysis called CFA--Cash Flow Analyzer. which uses knowledge based on ratio analysis and the budgetary statement of changes in cash flow. The system uses "If ••• Then ••• " rules to capture the expertise necessary to diagnose the source of cash flow problems and make recommendations on how to mitigate those problems. 1. AN EXPERT SYSTEM FOR...