The Experts below are selected from a list of 324 Experts worldwide ranked by ideXlab platform
Ruud Weijermars - One of the best experts on this subject based on the ideXlab platform.
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shale gas technology innovation rate impact on economic base case scenario model benchmarks
Applied Energy, 2015Co-Authors: Ruud WeijermarsAbstract:Low gas wellhead prices in North America have put its shale gas industry under high competitive pressure. Rapid technology innovation can help companies to improve the economic performance of shale gas fields. Cash Flow models are paramount for setting effective production and technology innovation targets to achieve positive returns on investment in all global shale gas plays. Future Cash Flow of a well (or cluster of wells) may either improve further or deteriorate, depending on: (1) the regional volatility in gas prices at the wellhead – which must pay for the gas resource extraction, and (2) the cost and effectiveness of the well technology used. Gas price is an externality and cannot be controlled by individual companies, but well technology cost can be reduced while improving production output. We assume two plausible scenarios for well technology innovation and model the return on investment while checking against sensitivity to gas price volatility. It appears well technology innovation – if paced fast enough – can fully redeem the negative impact of gas price decline on shale well profits, and the required rates are quantified in our sensitivity analysis.
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Shale gas technology innovation rate impact on economic Base Case – Scenario model benchmarks
Applied Energy, 2015Co-Authors: Ruud WeijermarsAbstract:Low gas wellhead prices in North America have put its shale gas industry under high competitive pressure. Rapid technology innovation can help companies to improve the economic performance of shale gas fields. Cash Flow models are paramount for setting effective production and technology innovation targets to achieve positive returns on investment in all global shale gas plays. Future Cash Flow of a well (or cluster of wells) may either improve further or deteriorate, depending on: (1) the regional volatility in gas prices at the wellhead – which must pay for the gas resource extraction, and (2) the cost and effectiveness of the well technology used. Gas price is an externality and cannot be controlled by individual companies, but well technology cost can be reduced while improving production output. We assume two plausible scenarios for well technology innovation and model the return on investment while checking against sensitivity to gas price volatility. It appears well technology innovation – if paced fast enough – can fully redeem the negative impact of gas price decline on shale well profits, and the required rates are quantified in our sensitivity analysis.
Robert J. Hendershott - One of the best experts on this subject based on the ideXlab platform.
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Do Firms Use Dividends to Signal Large Future Cash Flows
1999Co-Authors: Yaron Brook, William T. Charlton, Robert J. HendershottAbstract:We find that firms poised to experience large, permanent Cash Flow increases after four years of flat Cash Flow tend to boost their dividends before their Cash Flow jumps. These firms also have a high frequency of relatively large dividend increases prior to the Cash Flow shock. Investors appear to interpret the dividend changes as signals about Future profitability: firms that sharply increase their dividends earn large market-adjusted stock returns in the year before their Cash Flow rises. This direct link between positive Cash Flow shocks, dividend decisions, and stock returns supports the hypothesis that dividend changes signal positive information about permanent Future Cash Flow levels. However, our results also suggest that signaling plays a relatively minor role in corporate dividend policy.
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Do firms use dividends to signal large Future Cash Flow increases
Financial Management, 1998Co-Authors: Yaron Brook, William T. Charlton, Robert J. HendershottAbstract:an Assistant Professor at Santa Clara University. We find that firms poised to experience large, permanent Cash Flow increases after four years of flat Cash Flow tend to boost their dividends before their Cash Flow jumps. These firms also have a high frequency of relatively large dividend increases prior to the Cash Flow shock. Investors appear to interpret the dividend changes as signals about Future profitability: firms that sharply increase their dividends earn large market-adjusted stock returns in the year before their Cash Flow rises. This direct link between positive Cash Flow shocks, dividend decisions, and stock returns supports the hypothesis that dividend changes signal positive information about permanent Future Cash Flow levels. However, our results also suggest that signaling plays a relatively minor role in corporate dividend policy.
Jaehong Lee - One of the best experts on this subject based on the ideXlab platform.
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Does a Pro-Environmental Firm Attract Future Cash Flow? With an Impact of Sustainable Advertisement on Firms’ Financial Performance
Sustainability, 2021Co-Authors: Jaehong Lee, Suyon KimAbstract:This study investigates the Future existence of firms that are engaged in environment-oriented activities. Recently, strategic activities for firms’ sustainable growth has been critical for the environment. We use regression analysis to examine the relationship using firms listed in the Korea Stock Exchange market from 2014 to 2018. We use five aspects of environment-oriented activities: organization, management, strategy, performance, and shareholders, provided by the Korea Corporate Governance Service. The empirical results indicate that the firms participating in environment-oriented activities are likely to predict Future Cash Flow, implying firms’ sustainability. We also claim that firms engaged in environment-oriented activities are likely to advertise their pro-environmental engagements, resulting in firms’ sustainable existence in the Future. These findings are robust when we use the aggregate value as an alternative measurement. Our finding provides useful information for corporate practice. Active involvement in environmental activities can be used as a strategy that leads to superior performance. These efforts will contribute to enhancing the public image and improving green competitiveness. From the perspective of regulators, the non-financial information assessment supports the government’s eco-friendly policy that emphasizes environment-oriented activities. The results indicate that transparent information for external investors seeking to invest in firms are engaged in environment-oriented activities.
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Does Human Resource Investment for Internal Control System Enhance Future Cash Flow Predictability
Sustainability, 2020Co-Authors: Jaehong Lee, Suyon KimAbstract:Generating positive long-term Cash Flow is vital for a firm’s sustainability. In this paper, we consider the earnings in the forecasting of Future Cash Flow from a human resource investment of an internal control system. Using the firms listed in the Korea Stock Exchange market from 2014 to 2018, we find that the current earnings are the components of Cash Flow forecasting, and this relationship is genuine in a firm equipped with sufficient internal control personnel and their experiences. These findings indicate that earnings are reliable when forecasting Future Cash Flow for a firm with a well-operated foundation.
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Foreign Monitoring and Predictability of Future Cash Flow
Sustainability, 2019Co-Authors: Jaehong Lee, Eunsoo KimAbstract:A company’s sustainability is generally determined by whether it is able to create a positive long-term Cash Flow. This paper investigates whether the predictive ability of Cash Flows and earnings in forecasting Future Cash Flows differs depending on the foreign investors’ ownership. Based on firms listed in the Korea Stock Exchange market from 2000 to 2017, we find that earnings and Cash Flow components of financial statements enhance the predictability of Future Cash Flow in the Korean stock market. Conversely, foreign investors showed a tendency to decide on investments based on operating Cash Flow instead of earnings when predicting Future Cash Flow. These findings indicate that reliability towards earnings may fall since foreign investors’ concerns are on the prospects of earnings management. These results were strengthened by the addition of several more analyses including cluster analyses, consideration of information asymmetry and the chaebol governance.
Yaron Brook - One of the best experts on this subject based on the ideXlab platform.
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Do Firms Use Dividends to Signal Large Future Cash Flows
1999Co-Authors: Yaron Brook, William T. Charlton, Robert J. HendershottAbstract:We find that firms poised to experience large, permanent Cash Flow increases after four years of flat Cash Flow tend to boost their dividends before their Cash Flow jumps. These firms also have a high frequency of relatively large dividend increases prior to the Cash Flow shock. Investors appear to interpret the dividend changes as signals about Future profitability: firms that sharply increase their dividends earn large market-adjusted stock returns in the year before their Cash Flow rises. This direct link between positive Cash Flow shocks, dividend decisions, and stock returns supports the hypothesis that dividend changes signal positive information about permanent Future Cash Flow levels. However, our results also suggest that signaling plays a relatively minor role in corporate dividend policy.
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Do firms use dividends to signal large Future Cash Flow increases
Financial Management, 1998Co-Authors: Yaron Brook, William T. Charlton, Robert J. HendershottAbstract:an Assistant Professor at Santa Clara University. We find that firms poised to experience large, permanent Cash Flow increases after four years of flat Cash Flow tend to boost their dividends before their Cash Flow jumps. These firms also have a high frequency of relatively large dividend increases prior to the Cash Flow shock. Investors appear to interpret the dividend changes as signals about Future profitability: firms that sharply increase their dividends earn large market-adjusted stock returns in the year before their Cash Flow rises. This direct link between positive Cash Flow shocks, dividend decisions, and stock returns supports the hypothesis that dividend changes signal positive information about permanent Future Cash Flow levels. However, our results also suggest that signaling plays a relatively minor role in corporate dividend policy.
Darren T. Roulstone - One of the best experts on this subject based on the ideXlab platform.
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Do insider trades reflect both contrarian beliefs and superior knowledge about Future Cash Flow realizations
Journal of Accounting and Economics, 2005Co-Authors: Joseph D. Piotroski, Darren T. RoulstoneAbstract:Abstract This paper documents that insiders are both contrarians and possessors of superior information. We find that insider trades are positively related to the firm's Future earnings performance (proxy for superior Cash Flow information), positively related to the firm's book-to-market ratio and inversely related to recent returns (proxies for trading against misvaluation). Each relation has incremental explanatory power, yet information about Future Cash Flow changes explains a smaller portion of insider purchases than do proxies for security misvaluation. The relation between insider trades and Future earnings performance is amplified (attenuated) as the benefits (costs) to trading on financial performance information increase.
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Do Insider Trades Reflect Superior Knowledge about Future Cash Flow Realizations
SSRN Electronic Journal, 2003Co-Authors: Joseph D. Piotroski, Darren T. RoulstoneAbstract:This paper examines whether insider trades reflect the insiders' superior knowledge of Future Cash Flow realizations, as proxied by the firm's Future return and earnings performance. We find strong evidence that insider trades are positively associated with the firm's Future earnings performance. This relation is shown to be incremental to the book-to-market and past return relations documented in Rozeff and Zaman (1998), suggesting that insiders trade on both transitory security misvaluation and private information about Future Cash-Flow payoffs. We find that insider trading behavior within each book-to-market portfolio varies with the horizon of the subsequent earnings news. Insider purchases are significantly positively related to next year's earnings news across all book-to-market portfolios, while the sign of the relation between insider purchases and contemporaneous earnings is negative (positive) for glamour (value) firms. Finally, we show that the relation between insider trades and Future earnings performance is amplified (attenuated) as the likely ex ante benefits (costs) to trading on financial performance information increase.
