CASH HOLDINGS‚ WORKING CAPITAL AND FIRM VALUE: EVIDENCE FROM FRANCE Ruta AUTUKAITE* – Eric MOLAY** Abstract: Although companies deal with day-to-day short term financial decisions‚ in corporate finance the emphasis is being put on long term financial issues when talking about company’s value. In this paper a sample of French listed companies was chosen to assess the importance of short term financial decisions to company’s value by testing the following hypotheses: an extra euro invested in cash
Premium Working capital Corporate finance Finance
Corruption exists in almost all firms‚ public or private‚ even though there are many risks involved since it is a “necessity” for being competitive according to business statistics. Numerous companies join the bandwagon to engage in corruption because it seems as if that’s the only way ‘things get done’ and firms will remain in business. The firms which do not engage in fraud will be at a disadvantage compared to the other companies which are corrupted. Last but not the least‚ the company officials
Premium Political corruption Corruption Ethics
standpoint‚ of course they do not want to expend too much money on the discharge of waste water from pulp and paper mills; furthermore‚ the firm had been facing difficult financial times due to recession‚ and this had caused substantial hardship in the three small communities where the mills were located. But‚ as in the Pulp and Paper industry has the responsibility to the new government proposals to put effluent controls on the discharge of waste water from Paper mills in environmentally sensitive regions
Premium Water pollution Cost Ethics
Cost of debt When individuals use the cost of debt‚ they should know the measurement of the interest rate‚ or the yield paid to the bondholders. When analyzing the cost of debt‚ people should know that it ’s an effective rate that businesses are willing to pay on the current debt that they have accrued. The cost of debt is a measurement of the before or after tax returns. Considering the case that individuals can deduct the interest‚ makes the tax after cost more popular than the before tax. A business
Premium Finance Stock market Interest
of capital is the rate of return that capital could be expected to earn in an alternative investment of equivalent risk. If a project is of similar risk to a company’s average business activities it is reasonable to use the company’s average cost of capital as a basis for the evaluation. A company’s securities typically include both debt and equity‚ one must therefore calculate both the cost of debt and the cost of equity to determine a company’s cost of capital. However‚ a rate of return larger than
Premium Interest Investment Finance
HOW CAN DOMESTIC FIRM GAIN COMPETITIVE ADVANTAGE ON NEW INTERNATIONAL MARKET? MD3442 INTERNATIONAL STRATEGIC MANAGEMENT MICHAL GIERDA G20443172 Marketing can be explained as a process of gaining the competitive advantage and sustaining it. Many firms across the world which get to that point on their domestic markets decides to start their businesses on the international markets. This process is well known as internationalization and with proper strategy and market entry mode can lead
Premium
ways to prevent SIDS is to have the correct bedding and sleeping posture. A baby must always sleep on its back‚ a baby sleeping on its stomach is unstable and could suffocate. It may seem strange‚ but avoid soft bedding‚ babies should be placed on a firm crib mattress‚ with one light sheet to cover them. Bedding can’t have comforters‚ pillows‚ or quilts that could suffocate or overheat a baby. Make sure the temperature of the room isn’t too hot or too
Premium Sudden infant death syndrome
essence it gives an increased span for more strategic control and provides a closer link to market and better management of finished product stocks. We can see the emergence of thinking in terms of Porter’s value chain model of competitive advantage: Firm infrastructure (e.g. finance‚ accounting‚ legal) Human resource management Technology development Procurement
Premium Supply chain management Supply chain Management
Inventory Chicanery Tempts More Firms‚ Fools More Auditors A Quick Way to Pad Profits‚ It Is Often Revealed Only When Concern Collapses A Barrel Full of Sweepings By LEE BERTON Staff Reporter of THE WALL STREET JOURNAL December 14‚ 1992 Why do so many accountants fail to warn the public that the companies they audit are on the verge of collapse? Increasingly‚ experts are blaming inventory fraud. "When companies are desperate to stay afloat‚ inventory fraud is the easiest
Premium Marketing Management Retailing
This paper integrates elements from the theory of agency‚ the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We focus in this paper on the behavioral implications of the property rights specified in the contracts between the owners and managers of the firm. The possibility of monitoring the behavior of the company by means of review of controls has stayed aside in this analysis. In the activity they can use resources for changing
Premium Property Ownership Real estate