Volume 1, Issue 3, September 2017, Page: 70-73
The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities
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
Received: Feb. 25, 2017;       Accepted: Jun. 5, 2017;       Published: Aug. 7, 2017
DOI: 10.11648/j.ijem.20170103.12      View  1519      Downloads  112
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.
Keywords
Leverage, Operations, Operational Activities, Accrual Basis, Cash Basis
To cite this article
Ghodratollah Talebnia, Forough Moussavi Najaf Abadi, Fatemeh Baghiyan, The Degrees of Operating Leverage with Changes in Cash Flows from Operating Activities, International Journal of Engineering Management. Vol. 1, No. 3, 2017, pp. 70-73. doi: 10.11648/j.ijem.20170103.12
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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