Prior researches focus mainly on the relationship between governance structure and earnings quality. Unlike the previous researches, this study attempts to empirically examine the role of surplus free cash flow （SFCF...Prior researches focus mainly on the relationship between governance structure and earnings quality. Unlike the previous researches, this study attempts to empirically examine the role of surplus free cash flow （SFCF） as a moderator in the relationship with the new requirements of Malaysian code on corporate governance （MCCG）. By using the estimated generalized least square （EGLS） upon a sample of Malaysian firms, the results show that firms with an independent chairman experience persistent earnings numbers. The results also demonstrate that the current earnings of finns with small boards and independent audit committee members are more likely to persist in the future, when SFCF is high. However, in contradiction to the authors＇ expectation is the significant, but negative and interactive effect of current earnings and audit committee competence on earnings persistence. The findings, though disappointing, suggest investors to consider both the governance structure and free cash flow （FCF） agency problem when evaluating the sustainability of firms＇ earnings. They also call for more independent directors, effective meetings, and more competent audit committee members.展开更多
This study investigates the dynamic evolutionary trajectory of XCMG's capital return payment capacity through the lens of free cash flow(FCF),leveraging the company’s financial data spanning the period from 1998 ...This study investigates the dynamic evolutionary trajectory of XCMG's capital return payment capacity through the lens of free cash flow(FCF),leveraging the company’s financial data spanning the period from 1998 to 2024.By integrating free cash flow metrics with indicators of debt-servicing capability and profit quality,the research conducts a systematic analysis of the core determinants that shape the firm’s ability to meet capital return obligations.The findings reveal that both FCF1 and FCF2 of XCMG exhibit pronounced cyclical volatility;moreover,the rigid growth of interest expenses has the effect of amplifying cash flow gaps,which in turn renders the capital return payment capacity highly sensitive to external financing sources during periods of industry downturn.In light of these results,the paper puts forward a set of recommendations,including the compression of leverage ratios,the optimization of investment pacing,and the strengthening of cash recovery mechanisms,with the aim of providing empirical evidence to support the construction machinery industry in enhancing free cash flow creativity and realizing high-quality development.展开更多
Free cash flow and financing constraints can exert significant influences on the operational development of enterprises.Based on the pecking order theory and using data from A-share listed companies in China,this pape...Free cash flow and financing constraints can exert significant influences on the operational development of enterprises.Based on the pecking order theory and using data from A-share listed companies in China,this paper employs fixed-effects models and moderation effect models to examine the relationship and mechanisms between enterprises'free cash flow generation capacity and their financing constraints.The study found that:(1)Free cash flow can alleviate corporate financing constraints.(2)Corporate performance plays a positive moderating role in the impact of free cash flow on financing constraints.(3)The impact of free cash flow on financing constraints is weaker in state-owned enterprises compared to non-state-owned enterprises.The findings of this paper imply that free cash flow can have a significant impact on corporate financing activities.Therefore,enterprises should pay more attention to their cash flow indicators,signaling their operational stability and risk management capabilities to the outside world,thereby reducing the level of financing constraints faced by the enterprise.展开更多
This paper investigates the free cash flow productivity of SOEs compared with non-SOEs and examines its possible determinants.We find that SOEs have slightly weak free cash flow productivity but significantly stronger...This paper investigates the free cash flow productivity of SOEs compared with non-SOEs and examines its possible determinants.We find that SOEs have slightly weak free cash flow productivity but significantly stronger than non-SOEs.Similar performance exists among commercial class I and II SOEs and public-benefit SOEs.Further analyses suggest that firm size,age,sales growth,ownership concentration,government subsidies,and industry monopoly factors cannot explain this phenomenon.The common driver for all types of SOEs to generate stronger free cash flows than non-SOEs is their stronger expense control capability.展开更多
文摘Prior researches focus mainly on the relationship between governance structure and earnings quality. Unlike the previous researches, this study attempts to empirically examine the role of surplus free cash flow （SFCF） as a moderator in the relationship with the new requirements of Malaysian code on corporate governance （MCCG）. By using the estimated generalized least square （EGLS） upon a sample of Malaysian firms, the results show that firms with an independent chairman experience persistent earnings numbers. The results also demonstrate that the current earnings of finns with small boards and independent audit committee members are more likely to persist in the future, when SFCF is high. However, in contradiction to the authors＇ expectation is the significant, but negative and interactive effect of current earnings and audit committee competence on earnings persistence. The findings, though disappointing, suggest investors to consider both the governance structure and free cash flow （FCF） agency problem when evaluating the sustainability of firms＇ earnings. They also call for more independent directors, effective meetings, and more competent audit committee members.
文摘This study investigates the dynamic evolutionary trajectory of XCMG's capital return payment capacity through the lens of free cash flow(FCF),leveraging the company’s financial data spanning the period from 1998 to 2024.By integrating free cash flow metrics with indicators of debt-servicing capability and profit quality,the research conducts a systematic analysis of the core determinants that shape the firm’s ability to meet capital return obligations.The findings reveal that both FCF1 and FCF2 of XCMG exhibit pronounced cyclical volatility;moreover,the rigid growth of interest expenses has the effect of amplifying cash flow gaps,which in turn renders the capital return payment capacity highly sensitive to external financing sources during periods of industry downturn.In light of these results,the paper puts forward a set of recommendations,including the compression of leverage ratios,the optimization of investment pacing,and the strengthening of cash recovery mechanisms,with the aim of providing empirical evidence to support the construction machinery industry in enhancing free cash flow creativity and realizing high-quality development.
文摘Free cash flow and financing constraints can exert significant influences on the operational development of enterprises.Based on the pecking order theory and using data from A-share listed companies in China,this paper employs fixed-effects models and moderation effect models to examine the relationship and mechanisms between enterprises'free cash flow generation capacity and their financing constraints.The study found that:(1)Free cash flow can alleviate corporate financing constraints.(2)Corporate performance plays a positive moderating role in the impact of free cash flow on financing constraints.(3)The impact of free cash flow on financing constraints is weaker in state-owned enterprises compared to non-state-owned enterprises.The findings of this paper imply that free cash flow can have a significant impact on corporate financing activities.Therefore,enterprises should pay more attention to their cash flow indicators,signaling their operational stability and risk management capabilities to the outside world,thereby reducing the level of financing constraints faced by the enterprise.
基金support from the National Natural Science Foundation of China(Project No.71672098)Accounting Master Program of the Ministry of Finance of China(2015)and the Tsinghua University School of Economics and Management Research Grant(Project No.2020051009).
文摘This paper investigates the free cash flow productivity of SOEs compared with non-SOEs and examines its possible determinants.We find that SOEs have slightly weak free cash flow productivity but significantly stronger than non-SOEs.Similar performance exists among commercial class I and II SOEs and public-benefit SOEs.Further analyses suggest that firm size,age,sales growth,ownership concentration,government subsidies,and industry monopoly factors cannot explain this phenomenon.The common driver for all types of SOEs to generate stronger free cash flows than non-SOEs is their stronger expense control capability.
