In this thesis we examine the long-run stock performance of seasoned equity offering (SEO) companies. We find that SEO firms facing a short-term cash shortage when they issue new shares have poor long-run stock performance. This result is robust according to tests based on two different performance measurement methods. In contrast, the stock price reaction at the time of SEO announcement is not correlated with short-term cash need. The evidence suggests that the market does not incorporate the negative information contained in cash shortage at the time of SEO. We test alternative explanations for underperformance. We find that the long-run operating performance of SEO firms with greater cash need is similar to that of other SEO firms. Also, SEO firms with greater cash need have higher Tobin's Q at the time of issuance. This evidence suggests that the poor long-run stock performance reflects a correction of market overvaluation. / October 2016

Thesis (M. Com.)--University of Canterbury, 2008. / Typescript (photocopy). Includes bibliographical references (leaves 169-177). Also available via the World Wide Web.

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Thesis--Wisconsin. / Vita. Includes bibliographical references (leaves 162-169).

Aim of this thesis is to examine the specific influences on the business development of cash flows for each year. Is important to assess the impact of credit obtained in 2006 to build a grinding lines on the cash flows of the enterprise.

Abstract Background: Cash management means the management of liquidity in order to meet their day-to-day commitment. The result of poor focus on cash management often means that the financial assets are bound. The management of liquidity is not something new but cash management is a modern way of doing that. Cash management is a very broad subject which involves many factors, this paper will focus on examine how the liquidity is managed in Jonsons Byggnads AB, in order to improve the liquidity through cash management thinking. Jonsons Byggnads AB is a local construction firm located in Jönköping. This paper will examine the firm’s liquidity with focus on payment/payout routines, liquidity management, short-term financing and the connection between accounts receivables and payables.   Purpose: The purpose is to examine Jonsons bygg’s liquidity today in order to later recognize which factors within cash management that can strengthen the liquidity position for Jonsons Byggnads AB. Method: This is a qualitative study based examining the liquidity management for Jonsons Byggnads AB. The collection of the data and information was gathered by interviews, observations and balance sheet/income statement (Jonsons Byggnads AB). The interviews were done with Fadi Babil (The owner of Jonsons Byggnads AB) and two other staff members, which have chosen to be anonymous. Fadil Sadiku (Financial advisor at Swedbank) have also been interviewed in order to gather information about various products Swedbank offers to improve the liquidity for Jonsons Byggnads AB. Conclusion: The result of this study showed us that Jonsons Byggnads AB have good liquidity position even though the company does not have anyone employed to manage the liquidity. Even though Jonsons bygg’s liquidity position is healthy, there are some areas that can be improved. Improvements in the payment/payout routines can be done by computerizing the sales ledger system completely and therefore be more efficient and profitable. Connecting the invoices to an account with higher interest is also an approach to be more profitable. Since the accounts being used today have almost no interest.

In the first essay, "The Source of Cash and Its Marginal Value," we study the relation between the source of firms' cash holdings and the value of the cash to shareholders. The marginal value of a dollar of cash holdings depends on the source of the dollar: $1.00 of cash has a value of $1.27 when it is from operations, $0.80 when from financing, and $0.46 when from investing. Within the same source, the marginal value of an added dollar of cash holdings is significantly higher than the absolute value of a subtracted dollar. Shareholders of financially constrained or distressed firms value incremental cash holdings from almost any source more highly than do shareholders of unconstrained or stronger firms, but differences in value remain across the sources of cash within each subsample. Agency costs and information asymmetry are two frictions that appear to have the largest impact upon the value of cash. In the second essay, "Explanations for Diverging Values of Cash," we further explain the differing values of cash found in the first essay. Intertemporal relationships among the sources and uses of cash provide a rational basis for shareholders to assign different values of cash based on the source. Sources of cash provide information about likely uses of cash up to two to three years in the future, and many of the intertemporal relations are statistically and economically significant. Likewise, prior uses of cash relate significantly to later uses of cash. Past sources of cash inform investors about likely future sources, even up to five years into the future. The fact that different kinds of cash flows have predictive power for future cash flows helps explain the wide range of the values of cash associated with different sources.

This diploma thesis deals with evaluation of the advantages and disadvantages of cash pooling. The aim of the thesis is to assess profitability of the cash management methods and eventual benefits of involvement of branches of surveyed company in the Group cash pooling. The theoretical part analyzes basic concepts of cash pooling, analytical part contains presentation of the company. Draft part assesses suitability of pooling cash and the feasibility of introducing cash pooling in other branches.

I examine the effect of cash holdings on the relationship between cash flow volatility and corporate investment. My results call into question the long-assumed negative association between cash flow volatility and corporate investment. Using an expanded dataset of U.S. domestic firms, I show that firms with high cash holdings increase investment in the face of increasing cash flow volatility, whereas firms with low cash holdings lower their investment expenditure. In doing so, I provide empirical evidence in support of recent theoretical models predicting that the sensitivity of investment to cash flow volatility is dependent on the level of balance sheet cash holdings. My results are robust to a number of model specifications.

<p>Previous research pertaining to the financial aspect of the mining industry has focused predominantly on mining products' values and the companies' sensitivity to exchange rates. There has been very little empirical research carries out in the field of the statistical behaviour of mning companies' cash flow data. This paper aimed to study the time-series behaviour of the cash flow data series of JSE listed mining companies.</p>