Abstract
In this study, it was practiced to adopt free cash flows to firm which is frequently used in calculating the firm value through the system dynamics model. For the study, a firm traded at Borsa Istanbul 100 Index (BIST-100) was chosen and the firm’s cash flow projection was created by analyzing its financial data. Future cash flows of the firm were exercised under certain scenarios via system dynamics model. The results exhibit that the future cash flows of the firm can be predicted successfully through the system dynamics model. It is considered that the system dynamics can be used as an efficient strategic management accounting technique and that it can provide the data which the business executives will require when making the optimal decisions maximizing the firm value.
Reference24 articles.
1. Acaravci Kakilli, S., Ural, T., and Karaömer, Y. (2018). Analyzing Factors Affecting Stock Return and Capital Structure Relationship via Structural Equation Modeling. İşletme ve İktisat Çalışmaları Dergisi, 6(4), 26–38. https://doi.org/10.32479/IICD.152
2. Aksu, İ. (2013). System Dynamics Approach in Budgeting. Medipres.
3. Aksu, İ., Söyler, H., and Eren, M. (2014). System Dynamics Model of A Production Firm. Sosyal Ekonomik Araştırmalar Dergisi, 14(28), 69–104. https://doi.org/10.30976/susead.302203
4. Altan, M., and Karahan, N. S. (2016). Company Valuation Through Free Cash Flow To Firm, Free Cash Flow To Equity and Economic Value Added Methods: An Application To Comparative From BIST Index. The Journal of Selcuk University Social Sciences Institute, 35, 11–23.
5. Aust, V., Pelger, C., and Drefahl, C. (2021). Exploring the relationship between valuation and stewardship uses of accounting information: Empirical evidence from German listed firms. Journal of International Accounting, Auditing and Taxation, 42, 100375. https://doi.org/10.1016/j.intaccaudtax.2020.100375