Operating Cash Flows, Cash Recovery Rates And Internal Rates Of Return

Andrews, Christine; Rue, Joseph C.; Volkan, Ara

doi:10.19030/jber.v8i8.750

Cited by 2 publications

(3 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In a study by Ranajee & Pathak (2019), it was found that large companies tended to show a stable level of cash generated. The result is similar to the finding of Andrews et al (2010). But in reality, the calculation of profits in conventional banks, what happens is the portion of the bank or capital owner of the risk premium, spread and term premium is the largest component when compared to other components so that a financial system like this will create an unfair distribution of income or in terms, The Quran, only circulates among rich people (Supriyanto, 2015).…”

Section: Resultssupporting

confidence: 73%

See 1 more Smart Citation

How Is the Real Sector Index Used for Pricing?

Setianingrum

Madjid

Santosa

2020

jamal

View full text Add to dashboard Cite

How is the Real Sector Index Used for Pricing? This research tries to identify the key elements in the implementation of the real sector index for Islamic banking. Analytic network process was employed as method. This research finds that price is a micro issue, therefore banks should not only use macro approach. Banks need to build micro metadata on each of their customers' business sectors. The priority data that must be made available is the financial statements of companies listed on the stock exchange. The level of cash generated method becomes the priority formula to guide the price of each business financing. PHASE 1 M odel Construction PHASE 3 Result Analysis PHASE 2 M odel Quantification Re se archer Li te rature Re vie w Que stionnaire

show abstract

Section: Resultssupporting

confidence: 73%

“…This is reinforced by the findings of research on the cash return level concept that has been described previously. Large firms tended to exhibit a stable cash return level (Andrews et al, 2010).…”

Section: Resultsmentioning

confidence: 99%

How Is the Real Sector Index Used for Pricing?

Setianingrum

Madjid

Santosa

2020

jamal

View full text Add to dashboard Cite

show abstract

“…The financial performance of a project will be measured by the operating cash flow rate (OCFR) or the cash recovery rate (CRR) of the firm. OCFR is a short-term financial performance or profitability measure, while CRR is a long-term financial or economic performance measure (Andrews, Rue and Volkan, 2010). OCFR is measured as:…”

Section: Methodology 31 Simulation Methodsmentioning

confidence: 99%

How Feasible a Convertible Ijarah Contract for Sme’s Financing: A Simulation Approach

Dalimunthe

Syakhroza

Nasution

et al. 2019

JIMF

View full text Add to dashboard Cite

Islamic financial institutions have relied for decades on margin-based contracts to provide financing for the business sector, despite the basic idea that Islamic finance is expected to provide an equity-based or a profit and loss sharing (PLS) contract. This fact raises the need to encourage the use of a margin-based instrument with an innovative scheme that allows for conversion of the contract into a PLS-based contract. Moreover, we propose a convertible ijarah contract to fill this need. A convertible ijarah contract is an ijarah (rent) contract that is convertible to a PLS contract according to the Islamic financier's decision. In this study, we simulate three scenarios of project financing with (a) murabaha as a margin-based contract, (b) musharaka as a PLS contract and (c) a convertible ijarah contract. The aim is to evaluate whether the convertible ijarah contract will provide a higher return for the financier compared to the other contracts. The main input of the simulation is nine sectors of Indonesian SMEs' financial performance. We found that when the financial performance of Indonesian SMEs was measured by short-term financial performance, the convertible ijarah contract outperformed the murabaha contract for all sectors but did not outperform the musharaka contract, except for low-margin sectors. However, when the financial performance of Indonesians SMEs was measured by long-term economic performance, we found that the convertible ijarah contract outperformed the murabaha contract and musharaka contract for almost all sectors.

show abstract

Operating Cash Flows, Cash Recovery Rates And Internal Rates Of Return

Abstract: ABSTRACT

Cited by 2 publications

References 6 publications

How Is the Real Sector Index Used for Pricing?

How Is the Real Sector Index Used for Pricing?

How Feasible a Convertible Ijarah Contract for Sme’s Financing: A Simulation Approach

Contact Info

Product

Resources

About