Accruals, investment, and the accrual anomaly
Article Abstract:
The fundamental investment information found in accrual is investigated upon, and its implications for the accrual anomaly is examined. It is found that accruals co-vary strongly with growth in employee, number fixed asset investments, external financing, and other growth attributes indicating that accruals capture economic fundamentals instead of just earnings persistence /quality. Consistent with the investment hypothesis, the accrual anomaly is found to vary acoss industries in a predictable manner based on a firm's business model.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 2007
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Sale of a business: how a deal was saved
Article Abstract:
A West Coast company's acquisition of a Midwestern distributor and manufacturers' representative of industrial pumps pushed through despite a number of initial difficulties. Two of the main problems blocking the deal were the seller's belief that she was not going to be compensated enough in cash to allow her to retire comfortably and her need to work for several more years to increase her and her husband's retirement fund. These problems were solved by selling only six of the seller's eight products.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1999
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Case study: how much to pay for a business or other capital investment
Article Abstract:
Projected and current net cash flows are important measures for any business decision and are crucial when making capital investments. A case is presented demonstrating what considerations to make when acquiring a business. It is shown that the preparation of data for cash flow analysis could be difficult but gives more informed decisions for investments. The net cash flow analysis used in the case may also be used to analyse other business decisions where cash inflow and outflow can be calculated.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1996
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