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A multiperiod analysis of working capital investment is outlined. An attempt is also made to clarify the objects of working capital management by reference to wealth maximisation orthodoxy.

The purpose of this paper is to explore the advantages equity capitalization programs based on retained earnings from patronage sources may provide cooperatives and their patrons that traditional equity financing methods do not offer.

The analysis is based on a model used to assess patron benefits from a cooperative that is financed by a combination of allocated equity acquired from noncash patronage refunds and unallocated equity acquired from retained earnings. The level of patron benefits is represented by the present value of the after-tax cash flow patrons receive from the cooperative, and the model is used to determine the combination of noncash patronage refunds and retained earnings that provides the greatest present value given the levels of those parameters that affect capitalization of the cooperative and the distribution of cash benefits to patrons.

The analysis demonstrates that only pure plans, i.e., plans based entirely on retained patronage refunds or entirely on retained earnings, will be associated with the greatest present value for any particular set of parameter values. Cooperatives that are characterized by low marginal tax rates and growth rates and whose patrons are characterized by high marginal tax rates and discount rates are those most likely to benefit from equity capitalization programs based on retained earnings.

The model is based on the assumption of constant parameter values and does not account for the existence of nonpatronage income.

A useful extension of this work would be the development of a decision aid capable of generating basic operating statement and balance sheet data and enabling cooperative decision makers to conduct experiments concerning alternative financing strategies based on retained earnings.

The analysis contained in this paper is based on an explicit model and extends across a broad range of values for various parameters that affect the level, timing, and present value of cash distributions from cooperatives. Because the cash flow received by patrons is determined after the cooperative’s planned equity growth is met, cash flow comparisons are equivalent with respect to the capital provided the cooperative. In addition, the revolving period is endogenously determined.

Information technology (IT) expenses constitute an important factor when choosing efficient IT systems. Especially with regard to cloud computing (CC), decision-makers tend to associate cost benefits. In this context, cloud providers present often undifferentiated sample calculations which aim to verify the financial favorability of their IT solutions. However, the scientific literature tries to encounter this by means of various total costs of ownership approaches. But science mostly neglects essential factors and does not provide an integrated approach involving factors, such as cost of capital, taxation effects, use intensity or duration of use. Hence, the purpose of this study is to involve these factors accordingly.

The paper uses a multi-method approach. First, existing literature is analyzed by a systematic literature review. Afterwards, the initial model is developed by means of a formal notation. Finally, the suitability of the formal model is evaluated by a real-life case study, where simulation software is used for investigating various scenarios.

The underlying paper discusses a formal model which integrates the four stated factors and enables decision-makers to compare cloud-based IT services on a comprehensive financial basis. Thus, the rational cost comparisons with traditional IT systems such as on-premise (OP) increase the transparency of the CC field significantly.

This paper shows impressively the importance of the four mentioned factors and their influence on the decision whether to implement cloud services or OP services. Herein, to the best of our knowledge and for the first time, a cash-flow-based comparison model is created for comparing cloud services and OP solutions.

Reporting cash flows is a relatively recent development in college and university financial reporting. An examination of the purported usefulness of cash flow information to the users of college and university financial statements including an examination of the relationship between accrual-based change in net assets and cash provided by operations found private universities have implemented the cash flow reporting requirements with a relatively high level of compliance employing the indirect format for reporting operating cash flows. The principal areas of deficiency were the reporting of split-interest, restricted gift activities and the required disclosures of cash outflows related to interest and taxes. The discussion of the compliance deficiencies and display findings leads to needed disclosure guidance and future research.

This paper aims to investigate the specification and power of tests based on the DD and modified DD model through the UK data between years 2000 and 2013, and make comparisons with tests using working capital accruals creating a measure of accruals quality as the standard deviation of the residuals value from firm-specific regressions base on working capital accruals on last, current and one-year-ahead cash flows from operations.

This study focuses both on the DD model and modified DD model to find out which of them can more accurately capture total working capital accrual estimation error and accrual quality. According to the DD model, the past, current and future net cash from operating activities as the three years’ operating cash inflows or outflows become omitted and correlated variables. In this study, the authors continue to document residuals from the DD and MDD models to demonstrate properties that are more consistent with behaviours of accruals estimation errors. Therefore, in this study, the authors are looking to compare the results from both the MDD and DD models and find which one of them is more effective in explaining the working capital accruals in the UK.

The authors find that adding additional explanatory variables may add additional explanatory power of variables to the DD model and extent to which accruals map into cash flow insights based on the UK data. This study is empirically well fitting with the internal workings of cash flows. As investors fixate only on the accounting earnings, they may fail to reflect fully on information contained within cash flow components and working capital accruals of current and future earnings.

The authors compare different equation to cover more items of working capital accruals. In addition, after examining earnings and accrual quality, the findings show that the average UK company behaviour was quite similar to the behaviour that was founded earlier for both models in the USA. Furthermore, this study results show that more volatility of sales, cash flow, accruals and earnings make a lower accrual quality. The results demonstrate that both models can capture the power to predict working capital accruals. Moreover, we find that adding additional explanatory variable of employee growth rate adds additional explanatory variables to DD model.

The history and divestiture of the Bell System is of immediate importance to several economies around the globe, especially those undergoing the change from state owned operations to private ownership. Similarly, those economies experiencing rapid expansion of telecommunications can also learn from the experiences of AT&T's development, maturity, and subsequent divestiture. In addition to a brief history, this study examines preliminary empirical evidence which suggests agency costs, particularly those associated with free cash flow, were reduced following the divestiture.

The purpose of this paper is to examine the comparative abilities of current period cash flows and earnings (and its components) to predict one‐year‐ahead cash flow from operations in Egypt.

The study uses the cash flow prediction models developed by Barth, Cram, and Nelson to examine the predictive abilities of earnings and cash flows for future cash flows. The first set of prediction models uses cross‐sectional regression to compare the predictive abilities of cash flows and aggregate earnings for one‐year‐ahead cash flow from operations. The second set of prediction models tests whether disaggregating earnings into cash flows and the major components of accruals enhances the predictive ability of earnings for one‐year‐ahead cash flow from operations.

The findings of the study reveal that aggregate earnings have superior predictive ability than cash flows for future cash flows. Also, the results reveal that disaggregating accruals into major components – changes in accounts receivable and payable, and in inventory, depreciation, amortization, and other accruals – significantly enhances predictive ability of earnings.

The study provides empirical evidence on the superiority of earnings in predicting future cash flows. The findings of the study should be considered in explaining the results of value relevance research Egypt. However, owing to relatively small sample size, given the thinness of the Egyptian capital market, these findings should be interpreted with caution.

The paper contributes to the limited body of research on the superiority of earnings and cash flows in predicting future cash flows by examining the predictive abilities of earnings and cash flows for future cash flows in Egypt as one of many emerging markets.

Business failures during the economic recession of 2008‐2010 years were unusually high in the USA. The purpose of this paper is to build a new model to predict business failure, using mostly cash flow statement based measures as predictor variables and discriminant analysis technique.

The authors' data matrix consisted of 100 firms and seven predictor variables. A total of 50 “failed” firms were matched with 50 non‐failed firms according to Standard Industrial Classification (SIC) code and size. Financial statement data for the year prior to failed year were pulled from COMPUSTAT database. Seven predictor variables were selected, namely Operating cash flow divided by current liabilities, Cash flow coverage of interest, Operating cash flow margin, Operating cash flow return on total assets, Earning quality, Quick ratio and Three‐year sales growth. The SPSS‐19 software was used to perform discriminant analysis (DA).

The DA model classified 83.3 percent of original grouped cases correctly. The cross‐validated approach (jackknife or leave‐one‐out method) correctly classified 79.5 percent of cases. The chi‐square test of Wilks' lambda was significant at 0.000 level which means the model as a whole performed very well in predicting business failure.

This study is unique in many respects. First, the sample companies are not industry specific. They come from more than 20 different two‐digit SIC codes, which means the authors' model is very generic in nature. Second, the seven predictor variables (financial ratios) they selected are logically justified; these are not an outcome of step‐wise procedure. Third, most of the predictor variables use operating cash flow information from the cash flow statement. Fourth, all the failed firms in the authors' test sample are from the most recent, 2008‐2010, period.

An updated version of the original (1985) text, the book covers all aspects of marketing and selling bank services: the role of marketing; behaviour of customers; intelligence, planning and organisation; product decisions; promotion decisions; place decisions; price decisions; achieving sales. Application questions help to focus the readers' minds on key issues affecting practice.

This paper is aimed to evaluate recently privatized 18 electricity distribution and retail companies, using the data and conditions at the time they were privatized. The main hypothesis of the study is that most of the privatized companies in this research are underpriced similar to previous experiences in developed and emerging economies.

Values of the companies are calculated considering the formal procedures of Turkish energy authorities. These companies are valued under the base, moderate and extreme scenarios created from different sets of assumptions considering conditions and existing data at the time they were privatized. Discounted cash flows (DCF) methodology is used in the estimations. The market prices obtained in their privatization tenders are compared with those theoretically calculated values (intrinsic prices).

The findings reject the hypothesis and indicate an overpricing in general in the privatizations of Turkey. Even the extreme scenario which gives the highest intrinsic values supports the findings.

Research is limited with 18 regional electricity distribution company in Turkey.

The paper is one of the initial empirical studies on the valuation of energy companies using DCF methodology in an emerging market.