The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities

Ghodratollah Talebnia; Forough Moussavi Najaf Abadi; Fatemeh Baghiyan

doi:doi:10.11648/j.ijem.20170103.12

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The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities

Ghodratollah Talebnia, Forough Moussavi Najaf Abadi, Fatemeh Baghiyan

Published in International Journal of Engineering Management (Volume 1, Issue 3)

Received: 25 February 2017 Accepted: 5 June 2017 Published: 7 August 2017

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Abstract

The study population consisted business units listed in the Tehran Stock Exchange in the period from 1383 to 1388. In order to investigate the relationship between the degree of operating leverage and changes in cash flows from operating activities test Solidarity and the Durbin-Watson statistic is used. The results show that the changes in cash flow from operating activities and operating leverage, there is no correlation at 95 percent. But the 90 percent confidence level and have a significant negative relationship. To answer the next assumptions, the degree of operating leverage is divided into 5 floors and operating cash flow positive and negative changes are considered. When operating cash positive change is intended to increase the degree of operating leverage, stability factor is negative. This means that the positive changes in cash from operating activities and high operating leverage significant negative relationship at 90 percent. As well as the negative changes in cash from operating activities and low operating leverage significant negative relationship at 90 percent.

Published in	International Journal of Engineering Management (Volume 1, Issue 3)
DOI	10.11648/j.ijem.20170103.12
Page(s)	70-73
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Leverage, Operations, Operational Activities, Accrual Basis, Cash Basis

References

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APA Style

Ghodratollah Talebnia, Forough Moussavi Najaf Abadi, Fatemeh Baghiyan. (2017). The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities. International Journal of Engineering Management, 1(3), 70-73. https://doi.org/10.11648/j.ijem.20170103.12

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ACS Style

Ghodratollah Talebnia; Forough Moussavi Najaf Abadi; Fatemeh Baghiyan. The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities. Int. J. Eng. Manag. 2017, 1(3), 70-73. doi: 10.11648/j.ijem.20170103.12

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AMA Style

Ghodratollah Talebnia, Forough Moussavi Najaf Abadi, Fatemeh Baghiyan. The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities. Int J Eng Manag. 2017;1(3):70-73. doi: 10.11648/j.ijem.20170103.12

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@article{10.11648/j.ijem.20170103.12,
  author = {Ghodratollah Talebnia and Forough Moussavi Najaf Abadi and Fatemeh Baghiyan},
  title = {The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities},
  journal = {International Journal of Engineering Management},
  volume = {1},
  number = {3},
  pages = {70-73},
  doi = {10.11648/j.ijem.20170103.12},
  url = {https://doi.org/10.11648/j.ijem.20170103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijem.20170103.12},
  abstract = {The study population consisted business units listed in the Tehran Stock Exchange in the period from 1383 to 1388. In order to investigate the relationship between the degree of operating leverage and changes in cash flows from operating activities test Solidarity and the Durbin-Watson statistic is used. The results show that the changes in cash flow from operating activities and operating leverage, there is no correlation at 95 percent. But the 90 percent confidence level and have a significant negative relationship. To answer the next assumptions, the degree of operating leverage is divided into 5 floors and operating cash flow positive and negative changes are considered. When operating cash positive change is intended to increase the degree of operating leverage, stability factor is negative. This means that the positive changes in cash from operating activities and high operating leverage significant negative relationship at 90 percent. As well as the negative changes in cash from operating activities and low operating leverage significant negative relationship at 90 percent.},
 year = {2017}
}

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TY  - JOUR
T1  - The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities
AU  - Ghodratollah Talebnia
AU  - Forough Moussavi Najaf Abadi
AU  - Fatemeh Baghiyan
Y1  - 2017/08/07
PY  - 2017
N1  - https://doi.org/10.11648/j.ijem.20170103.12
DO  - 10.11648/j.ijem.20170103.12
T2  - International Journal of Engineering Management
JF  - International Journal of Engineering Management
JO  - International Journal of Engineering Management
SP  - 70
EP  - 73
PB  - Science Publishing Group
SN  - 2640-1568
UR  - https://doi.org/10.11648/j.ijem.20170103.12
AB  - The study population consisted business units listed in the Tehran Stock Exchange in the period from 1383 to 1388. In order to investigate the relationship between the degree of operating leverage and changes in cash flows from operating activities test Solidarity and the Durbin-Watson statistic is used. The results show that the changes in cash flow from operating activities and operating leverage, there is no correlation at 95 percent. But the 90 percent confidence level and have a significant negative relationship. To answer the next assumptions, the degree of operating leverage is divided into 5 floors and operating cash flow positive and negative changes are considered. When operating cash positive change is intended to increase the degree of operating leverage, stability factor is negative. This means that the positive changes in cash from operating activities and high operating leverage significant negative relationship at 90 percent. As well as the negative changes in cash from operating activities and low operating leverage significant negative relationship at 90 percent.
VL  - 1
IS  - 3
ER  -

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Author Information

Ghodratollah Talebnia

Faculty of Science and research, Islamic Azad University, Tehran, Iran
Forough Moussavi Najaf Abadi

Department of Accounting & Finance, North Azad University, Tehran, Iran
Fatemeh Baghiyan

Nuclear Science and Technology Research Institute, Plasma and Nuclear Fusion Research School, Tehran, Iran

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Plain Text BibTeX RIS

APA Style

Ghodratollah Talebnia, Forough Moussavi Najaf Abadi, Fatemeh Baghiyan. (2017). The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities. International Journal of Engineering Management, 1(3), 70-73. https://doi.org/10.11648/j.ijem.20170103.12

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ACS Style

Ghodratollah Talebnia; Forough Moussavi Najaf Abadi; Fatemeh Baghiyan. The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities. Int. J. Eng. Manag. 2017, 1(3), 70-73. doi: 10.11648/j.ijem.20170103.12

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AMA Style

Ghodratollah Talebnia, Forough Moussavi Najaf Abadi, Fatemeh Baghiyan. The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities. Int J Eng Manag. 2017;1(3):70-73. doi: 10.11648/j.ijem.20170103.12

Copy | Download

@article{10.11648/j.ijem.20170103.12,
  author = {Ghodratollah Talebnia and Forough Moussavi Najaf Abadi and Fatemeh Baghiyan},
  title = {The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities},
  journal = {International Journal of Engineering Management},
  volume = {1},
  number = {3},
  pages = {70-73},
  doi = {10.11648/j.ijem.20170103.12},
  url = {https://doi.org/10.11648/j.ijem.20170103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijem.20170103.12},
  abstract = {The study population consisted business units listed in the Tehran Stock Exchange in the period from 1383 to 1388. In order to investigate the relationship between the degree of operating leverage and changes in cash flows from operating activities test Solidarity and the Durbin-Watson statistic is used. The results show that the changes in cash flow from operating activities and operating leverage, there is no correlation at 95 percent. But the 90 percent confidence level and have a significant negative relationship. To answer the next assumptions, the degree of operating leverage is divided into 5 floors and operating cash flow positive and negative changes are considered. When operating cash positive change is intended to increase the degree of operating leverage, stability factor is negative. This means that the positive changes in cash from operating activities and high operating leverage significant negative relationship at 90 percent. As well as the negative changes in cash from operating activities and low operating leverage significant negative relationship at 90 percent.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities
AU  - Ghodratollah Talebnia
AU  - Forough Moussavi Najaf Abadi
AU  - Fatemeh Baghiyan
Y1  - 2017/08/07
PY  - 2017
N1  - https://doi.org/10.11648/j.ijem.20170103.12
DO  - 10.11648/j.ijem.20170103.12
T2  - International Journal of Engineering Management
JF  - International Journal of Engineering Management
JO  - International Journal of Engineering Management
SP  - 70
EP  - 73
PB  - Science Publishing Group
SN  - 2640-1568
UR  - https://doi.org/10.11648/j.ijem.20170103.12
AB  - The study population consisted business units listed in the Tehran Stock Exchange in the period from 1383 to 1388. In order to investigate the relationship between the degree of operating leverage and changes in cash flows from operating activities test Solidarity and the Durbin-Watson statistic is used. The results show that the changes in cash flow from operating activities and operating leverage, there is no correlation at 95 percent. But the 90 percent confidence level and have a significant negative relationship. To answer the next assumptions, the degree of operating leverage is divided into 5 floors and operating cash flow positive and negative changes are considered. When operating cash positive change is intended to increase the degree of operating leverage, stability factor is negative. This means that the positive changes in cash from operating activities and high operating leverage significant negative relationship at 90 percent. As well as the negative changes in cash from operating activities and low operating leverage significant negative relationship at 90 percent.
VL  - 1
IS  - 3
ER  -

Copy | Download