Seyyed Morteza Nabavian; Seyyed Ali Nabavi Chashmi; Iman Dadashi; Bahram Mohseni Maleki
Abstract
One of the most important factors affecting financing issues as a challenge for companies is to maintain financial flexibility. Internal Financial flexibility is affected by the company's liquidity. The cash holding indicates the ability of a company to deal with the risks, which largely depends on changes ...
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One of the most important factors affecting financing issues as a challenge for companies is to maintain financial flexibility. Internal Financial flexibility is affected by the company's liquidity. The cash holding indicates the ability of a company to deal with the risks, which largely depends on changes in cash flow and dividend policy of the company. In order to measure the dividends adjustment speed, which is a benchmark for dividend smoothing, the rolling window regressions based on the Lintner model (1956) was used Faulkender and Wang (2006) method is applied for measuring the marginal value of cash, which is an indicator for measuring financial flexibility. According to the research constraints, 105 companies listed in Tehran Stock Exchange during the period of 2008-2018 using the STATA software have been investigated. The results of the research show that the marginal value of cash does not have a significant effect on the dividends adjustment speed. Also, the Liquidity shock has no effect on the relationship between the marginal value of cash and the dividends adjustment speed
Saber Sheri Anaghiz
Abstract
The company's ability to identify potential funding sources both internal and external, are the main factors of growth and development. The main objective of companies is to maximize shareholder wealth and the company's capital structure is one of the factors contributing to this, that involve financial ...
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The company's ability to identify potential funding sources both internal and external, are the main factors of growth and development. The main objective of companies is to maximize shareholder wealth and the company's capital structure is one of the factors contributing to this, that involve financial resources commensurate with the risk and return. On the other hand, several studies have shown that due to the problems of the traditional theory of capital structure, one of the most important factors, affecting the issues of financing in companies, is financial flexibility. This study examines the impact of financial flexibility on capital structure decisions. For this purpose, the companies listed in Tehran Stock Exchange, 108companies were selected and financial data for the years 1382 to 1392 were studied. The results indicate that current period financial flexibility has a significant and positive relationship with capital structure. The results also suggest that for companies that have negative marginal value of cash, financial flexibility in capital structure decisions, is a priority.