Enterprise value variance analysis according to the impact of cash management
Abstract
The research aims to determine the pattern of the relationship between one of the most important elements of working capital, which is the management of cash and the impact of this in maximizing the value of the establishment, and therefore the research discusses the problem of the shortcomings suffered by some departments of industrial companies working in the Iraqi environment in the employment of elements of working capital, including cash management, in order to maximize the value of the facilities in the research orbit. On the basis of this was the independent variable in the research by managing cash and representing the variable responding to the value of the enterprise, To achieve this, the above-mentioned search variables have been processed by analyzing their real data, while Microsoft Excel and SPSS Ver.25 have been used for the purpose of calculating standard deviations and computational circles for all search dimensions, as well as testing search hypotheses, in addition to using descriptive statistical analysis. The research sample consisted of 11 industrial companies listed on the Iraqi Stock Exchange, whose data for the period 2008-2019 were collected through their closing accounts. The results resulted in a morally significant correlation and impact of cash management in maximizing the value of the market facilities in the research sample, while the results resulted in the absence of a correlation relationship and a morally significant impact of cash management in maximizing the value of real enterprises.
References
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36. Osundina, J.A. (2014). Working Capital Management and Profitability: Evidence From Quoted Food and Beverages Manufacturing Firms in Nigeria Research. Journal of Finance and Accounting, 5, 101-107.
37. Payne,Thomas H. Payne, Finch, J. Howard Finch, 1999" Effective teaching and use of the constant growth dividend discount model" Financial Services Review 8, p283–291.
38. Ross, Stephen A., Westerfield, Randolph W., and Jordan, Bradford D., "Fundamentals of Corporate Finance ", 7th.ed. New York: McGraw – Hill/ Irwin, 2008.
39. Schaeffer Aalias, Abu, Bmimi Liana, Abdullah, Camin Mahir. Technical efficiency of small and medium enterprise in Malaysia: A stochastic frontier production model. International Journal of Economics and Management. 2018;2(2).
40. Scott C, Subramanian T. Financial management. New Delhi: New Age International Pvt Ltd Publishers. Electronic text Book; 2015/2016.
41. Shapiro، Alan C." Multinational financial management"، John Wiley & Sons،10thed، 2010.
42. Somnath Das, 2017, Corporate cash management: A study on retail sector, Contents lists available at GrowingScience, homepage: www.GrowingScience.com/ac/ac.html, Accounting 3 (2017) 23–40.
43. Thavikulwat, Precha, Determining the value of Firm, Developments in Business Simulation and Experiential Learning, Towson University Volume 31, 2004.
44. Titus Mweta, Patrick Kipronoh, 2018, Effect of Working Capital Management on the Financial Performance: Evidence of Construction and Allied Sector Firms Listed at Nairobi Securities Exchange, Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.9, No.5, 2018.
45. Uremadu, J.A., Egbide, B. and Enyi, P.E. (2012) Working Capital management, Liquidity and Corporate Profitability among Quoted Firms in Nigeria: Evidence from the Productive Sector. International Journal of Academic Research in Accounting , Finance and Management Sciences , 2, 80-97.
46. Zu Hue. The distribution a l role of small business in development. International Journal of Social Economics. 2017;31(4).
2. Al-Ani, S., & FLAYYIH, H. (2018). Principles of Financial Accounting. Al-Mihajat Printing and Reproduction Office. Baghdad, Iraq.
3. Alkhafaji, A. A., Talab, H. R., Flayyih, H. H., & Hussein, N. A. (2018). The Impact Of Management Control Systems (Mcs) On Organizations Performance A Literature Review. Journal of Economics and Administrative Sciences, 24(105), 1-20.
4. Amanda S, Khan MB, Raheman SU, Khan MT, Khan M, Khan W. Working capital management and performance of SME sector. European Journal of Business and Management. 2020;5(1):60-68.
5. Asdriargo A., Maruddani D.A., Hoyyi A. Credit risk measurement of bond prices using the KMV-Merton structural model approach. Journal Gaussian. 2012;1(1):11–20
6. Assece A. Working management efficiency, of cement sector of Pakistan. Journal of Economics and Behavioral Studies. 2020;2:223-235.
7. Atrill, peter, (2012), Financial Management for Decision Makers, sixth edition, Pearson Education Limited.
8. Bassel Kesseven. Trends in working capital management and its impact on firms’ performance: An analysis of mauritian small manufacturing firms. International Review of Business Research. 2019;2(2):45-58.
9. Bharath, Sreedhar B. & Shumway, Tyler S., 2004" Forecasting Default with the KMV-Merton Model" International Journal of Financial Research p1-36
10. Bradburd, R., Wells, D. A., & Richards, C. (2015).Transferable Enterprise Value - The Importance of Quantifying Intangible Value Drivers in Small to Medium Size Enterprises (SMEs). Norwich, Vermont: Core Value Software
11. Bragg C. Management of working capital: A neglected subject. Management Decision. 2014;25(1):18 SME annual report, (2015/2015). National SME Development Council. Available :
12. Brigham, E., & Ehrhardt, M. Financila Management: Theory And Practice (13th Ed.). South Western Cengage Learning: Usa.2011.
13. Brigham, Eugene & Ehahardt, Michael C. , 2002 " Financial Management and Theory Practice " 10th ed. Wested Thomas learning publishing New York.
14. Brigham, Eugene F. & Ehahardt, Michael C. , 2008 " Financial Management and Theory Practice " 12th ed. Wested Thomas learning publishing New York.
15. Brigham, Eugene F. & Ehrhardt, Michael C. , 2005 " Financial Management Theory and Practice " R.R. Donnelley Willard, 11th ed , Wested Thomas learning publishing New York.
16. Brigham, Eugene F. & Ehrhardt, Michael C. , 2011 " Financial Management Theory and Practice " R.R. Donnelley Willard, 13th ed. Wested Thomas learning publishing New York.
17. Brigham, EugeneF .and Michael C.Ehrhardt , Financial Management: Theory and Practice,10thed.,Australia:Thomson Learning,2002.
18. Dastgir, Mohsen Dastgir, Khodadadi, Vali Khodadadi & Ghayed, Maryam Ghayed, 2010 " Cash Flows Valuation Using Capital Cash Flow Method Comparing it with free Cash Flow method and adjusted present Value method in companies listed on Tehran Stock Exchange" Business Intelligence Journal p45-58.
19. Derrouiche .Ridha &Neuert.Gilles&pery.carine.Domingnez(2012) RELATIONS COLLABORATIVES CLIENT-FOURNISSEUR : QUEL MODELE DE CREATION DE VALEUR ?.
20. E. Paeey. A brief overview of the types of ETFs[J]. Spiru Haret University Economic Series, 2019, 15(3): 39–46. DOI:10.26458/1534. Brigham, F, Eugen and Gapenski, C, Louis, Intermediate, 1996 " Financial Management", 5thed. The Dryden press.
21. Flayyih, H. H. (2016). The role of open budget in achieving of the transparency and responsibility and Reflect it on the administrative and financial corruption. journal of Economics And Administrative Sciences, 22(90).
22. Flayyih, H. H., Ali, S. I., & Mohammed, Y. N. (2018). The Effect of Integration of Coroprate Governance Mechanisms and Audit Quality in Earning Management: An Empirical Analysis of Listed Banks in Iraqi Stock Exchange. International Journal of Engineering & Technology, 7(4.25), 337-344.
23. Flayyih, H. H., Al-Mufraji, S. H., & Alhelle, M. H. (2019). Islamic Banks: Basic Concepts and Applied Cases.
24. Flayyih, H. H., Mirdan, A. S., & Elkhaldi, A. H. (2021). CRITICAL SUCCESS FACTORS OF STRATEGIC ACCOUNTING INFORMATION SYSTEM AND IT'S RELATION WITH STRATEGIC DECISIONS EFFECTIVENESS. THE ANNALS OF THE UNIVERSITY OF ORADEA, 30(1st), 227.
25. Flayyih, H. H., Salih, J. I., Rahma, N. G. A., & Mohammed, Y. N. (2020). Earnings Management between the fact of manipulation and credibility of management procedures: a literature review. Social Science and Humanities Journal, 1908.
26. Gill, A., Biger, N. and Neil, M. (2010) The Relationship Between Working Capital Management and Profitability: Evidence from The United States. Business and Economics Journal , 2010, BEJ-10.http://astonjournals.com/manuscripts/Vol2010/BEJ-10_Vol2010.pdf.
27. Gitman. Lawrence& Zutter.j. Chad(2009) Principles of Managerial Finance Fourteenth edition,Global Edition
28. Jason, K. (2017) The Effect of Working Capital Management on Profitability: A Case of Listed Manufacturing Firms in South Africa. Investment Management and Financial Innovations , 14, 336-346.
29. Kolb KV. State of the art of working capital management. Financial Management, Autumn. 2014;50-55.
30. Krida T, Nazzer. Working capital management policies of firms: Empirical evidence from Pakistan. Conference Proceedings of 9th South Asian Management Forum (SAMF) on February 24-25, North South University, Dhaka, Bangladesh; 2016.
31. Levi, Maurice D., Excchange Rate and the Valuation of Firms , Journal of Finance Vol.52. ,1994.
32. loof D. Does working capital management affect profitability of Belgian firms? Journal of Business Finance and Accounting. 2018;30(3 & 4):573–587.
33. Lutz, H.G.(2010). Farmers’ Organization’s Guide to Profitability Analysis: For Small Scale Farming in Southern Africa. Swedish Cooperative Centre Regional Office.
34. Muller P. Financial management for decision maker, (4th edition) practice hall; 2016.
35. Olaoye, Ayoola Azeez, 2020, The Impact of International Financial Reporting Standards Adoption on Global Acceptability of Financial Statements of Firms in Nigeria, Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.11, No.9, 2020.
36. Osundina, J.A. (2014). Working Capital Management and Profitability: Evidence From Quoted Food and Beverages Manufacturing Firms in Nigeria Research. Journal of Finance and Accounting, 5, 101-107.
37. Payne,Thomas H. Payne, Finch, J. Howard Finch, 1999" Effective teaching and use of the constant growth dividend discount model" Financial Services Review 8, p283–291.
38. Ross, Stephen A., Westerfield, Randolph W., and Jordan, Bradford D., "Fundamentals of Corporate Finance ", 7th.ed. New York: McGraw – Hill/ Irwin, 2008.
39. Schaeffer Aalias, Abu, Bmimi Liana, Abdullah, Camin Mahir. Technical efficiency of small and medium enterprise in Malaysia: A stochastic frontier production model. International Journal of Economics and Management. 2018;2(2).
40. Scott C, Subramanian T. Financial management. New Delhi: New Age International Pvt Ltd Publishers. Electronic text Book; 2015/2016.
41. Shapiro، Alan C." Multinational financial management"، John Wiley & Sons،10thed، 2010.
42. Somnath Das, 2017, Corporate cash management: A study on retail sector, Contents lists available at GrowingScience, homepage: www.GrowingScience.com/ac/ac.html, Accounting 3 (2017) 23–40.
43. Thavikulwat, Precha, Determining the value of Firm, Developments in Business Simulation and Experiential Learning, Towson University Volume 31, 2004.
44. Titus Mweta, Patrick Kipronoh, 2018, Effect of Working Capital Management on the Financial Performance: Evidence of Construction and Allied Sector Firms Listed at Nairobi Securities Exchange, Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.9, No.5, 2018.
45. Uremadu, J.A., Egbide, B. and Enyi, P.E. (2012) Working Capital management, Liquidity and Corporate Profitability among Quoted Firms in Nigeria: Evidence from the Productive Sector. International Journal of Academic Research in Accounting , Finance and Management Sciences , 2, 80-97.
46. Zu Hue. The distribution a l role of small business in development. International Journal of Social Economics. 2017;31(4).
Authors
[1]
“Enterprise value variance analysis according to the impact of cash management”, Soc. sci. humanities j., vol. 5, no. 09, pp. 2350–2367, Sep. 2021, Accessed: May 15, 2024. [Online]. Available: https://sshjournal.com/index.php/sshj/article/view/744
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