Enterprise system implementation and cash flow volatility

IF 3.2 3区 管理学 Q1 BUSINESS, FINANCE Contemporary Accounting Research Pub Date : 2023-05-09 DOI:10.1111/1911-3846.12872
Alfred Z. Liu, Morton Pincus, Sean Xin Xu
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Abstract

This study investigates the financial and operational implications of enterprise systems (ESs) in corporate risk management. Using matched difference-in-differences analyses based on ES implementation events, we document a significant reduction in the volatility of operating cash flows following ES implementations. We further show that ES implementers have better post-implementation operational efficiency than matched non-ES firms and better manage sales, costs of sales, working capital, and operating expenses to reduce operating cash flow volatility. Consistent with the benefits of lower cash flow volatility documented in prior literature, we find ES implementers demonstrate higher investment efficiency, lower reliance on external financing, and higher debt capacity post-ES-implementation than the matched non-ES firms. Our study sheds light on the economic benefits of utilizing ESs in corporate risk management and in so doing responds to the paucity of empirical research in this area.

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企业系统实施与现金流波动
本研究调查了企业系统在企业风险管理中的财务和运营影响。使用基于ES实施事件的匹配差异分析,我们记录了ES实施后运营现金流波动性的显著降低。我们进一步表明,ES实施者比匹配的非ES公司具有更好的实施后运营效率,并更好地管理销售、销售成本、营运资金和运营费用,以降低运营现金流的波动性。与先前文献中记录的较低现金流波动性的好处一致,我们发现ES实施者在ES实施后表现出比匹配的非ES公司更高的投资效率、更低的对外部融资的依赖以及更高的债务能力。我们的研究揭示了在企业风险管理中使用ES的经济效益,并回应了该领域实证研究的匮乏。
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来源期刊
CiteScore
6.20
自引率
11.10%
发文量
97
期刊介绍: Contemporary Accounting Research (CAR) is the premiere research journal of the Canadian Academic Accounting Association, which publishes leading- edge research that contributes to our understanding of all aspects of accounting"s role within organizations, markets or society. Canadian based, increasingly global in scope, CAR seeks to reflect the geographical and intellectual diversity in accounting research. To accomplish this, CAR will continue to publish in its traditional areas of excellence, while seeking to more fully represent other research streams in its pages, so as to continue and expand its tradition of excellence.
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