Analysis of the Impact of Changes in the Cash Flow to the Sensitivity of Investment Activity of the Company
Journal Title: Бізнес Інформ - Year 2014, Vol 8, Issue 0
Abstract
The paper studied and analyzed the impact of changes in the cash flows of the sensitivity of the investment activities of the enterprise. It is proved that the sensitivity of the investment activities of the enterprise when changing cash flows reflect fundamental economic relations between capital and net working capital as related manifestations of a firm \'s growth, and do not reflect the impact of financial constraints. The analysis revealed a slight effect of the change in working capital of the sensitivity of the investment activities of the enterprise, as opposed to income before depreciation and amortization, while cash flow from operating activities is a source of investment financing. It is proved that the sensitivity of the investment activities of the enterprise when changing cash flow is higher in financially limited companies, while financial companies have unlimited low sensitivity of investment activity when changing cash flows. The need for continued research into the impact of changes in corporate activities that reduce the asymmetry of information or facilitate access to external capital markets, the sensitivity of the investment activities of the enterprise was noted.
Authors and Affiliations
Igor Magdych
Keywords
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