Cash flow sensitivity evidence in commercial bank in Malaysia / Athirah Nurwafa Saferi

Cash is the life-blood of a company, with the cash flow from operating activities as the artery. Companies that constantly uses cash in its activities, instead of generating cash is heading for financial distress. The cash flow can measure by the actual characteristic of a company by looking at financial variable and ratios and comparing them with expected characteristic of such a company in order to find any irregularities. A normal company is expected to have a negative Cash Flow Investment, as it should continually replace existing non-current and invest in new growth opportunities. Primary purpose of the cash flow statement is to assess a company's liquidity, solvency, viability and financial adaptability. Cash flow statement can enhance the usefulness of financial information for economic decision making. The aim of this study to investigate the sensitivity of cash flow toward financial performance of the bank. This study will conduct by using panel data and the sampling for this study is 8 commercial banks in Malaysia and will focus on from the years 2009 until the years 2017.