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

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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Cite This Article
  • 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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    T1  - The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities
    AU  - Ghodratollah Talebnia
    AU  - Forough Moussavi Najaf Abadi
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    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
  • Faculty of Science and research, Islamic Azad University, Tehran, Iran

  • Department of Accounting & Finance, North Azad University, Tehran, Iran

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

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