Financial Accounting
Abbas Aflatooni; Zahra Nikbakht; Kefsan Mansouri
Abstract
The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. ...
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The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. The level of cash holdings and the speed of correcting the gap between the actual and the optimal level of cash holdings depend on several factors. The purpose of this study is to investigate the effect of the firm's business strategies (defenders and prospectors) on the level of cash holding and its speed of adjustment. In this regard, the data of 120 firms listed on the Tehran Stock Exchange (TSE) during 2013-2020 (960 firm-years) have been used. The static models are estimated using ordinary least squares (OLS) estimator and, the system generalized method of moments estimator (GMM) is used to estimate dynamic models. The results show that the prospectors have a smaller cash holdings ratio than defenders, and also, the prospectors have lower cash holdings speed of adjustment than defenders. The results of supplementary tests that confirm the research's main findings are consistent with the predictions made in trade-off theory.
Accounting and various aspects of finance
Mohammad Ali Aghaei; Mohammad Amri Asrami
Abstract
In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference ...
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In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference between a firm’s stock return and the return of the firm’s benchmark portfolio over the same period is used. By systematic sampling, a sample of 157 companies is selected, and the models have run based on panel data with fixed effects. The results have shown that (1) cash holding has a positive and significant impact on excess returns, (2) CEO’s overconfidence has a negative and significant impact on excess returns, and lastly, (3) CEO’s overconfidence has a negative and significant impact on the relationship between cash holdings and the excess returns. With increasing CEO’s overconfidence, the excess returns will be reduced. Overconfident managers keep cash at a higher level that leads to overinvestment. It consequently decreases excess returns.
hamid khalegimoghaddam; Maghsoud Amiri; Jalal Shirazadeh
Abstract
Deciding on the financing and composition of capital structure in Corporates depends on a variety of factors. Several studies have shown that financial flexibility is the most important factor affecting capital structure and corporate financing decisions. The main objective of the research is to measure ...
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Deciding on the financing and composition of capital structure in Corporates depends on a variety of factors. Several studies have shown that financial flexibility is the most important factor affecting capital structure and corporate financing decisions. The main objective of the research is to measure the financial flexibility of Corporates accepted in Tehran Securities Exchange (in accordance with the corporate environment and conditions). Therefore, according to the purpose of the research, in the first Step, based on the conceptual and theoretical framework derived from the exploration and exploration in specialized texts, the views of financial experts (including university professors and market experts) in order to understand their views and identify the dimensions, components , indexes and factors determining the financial flexibility of the Corporates were obtained through a questionnaire. In the second step, after referring to the model, the correlation method as one of the subsections of the descriptive research methodology for measuring the components of cash holdings, debt capacity, and capital market measure of Tehran Securities Exchange Corporates with the actual and historical information of financial statements and information Corporate stock trading (through multivariate regression tests and confirmatory factor analysis) The results of the measurement of the three components indicate that the amount of cash holdings, the size of the debt capability, and the relatively downward trend of the size of the capital market (stock liquidity) of the Tehran Securities Exchange corporations during the years 1380 to 1394, are. Measuring the dual dimension of financial flexibility also implies the use of internal financial flexibility and the non-use of external financial flexibility. Which can be explained by Trade off Theory, Pecking Order Theory and of asymmetric information Theory
Nezamedin Rahimian; Mahmood Ghorbani; Keyvan Shbani
Volume 10, Issue 40 , January 2014, , Pages 151-175
Abstract
Cash is one of the most crucial resources in every enterprise and making a balance between available cash and its requirements is the most important criteria for safety economic in every entity. All the companies that have enough cash for their operation and those that hold cash more than their need, ...
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Cash is one of the most crucial resources in every enterprise and making a balance between available cash and its requirements is the most important criteria for safety economic in every entity. All the companies that have enough cash for their operation and those that hold cash more than their need, have some troubles. So in this study the elements that may have influence on cash holding and the association between persistent excess cash holding on the Tehran stock exchange were examined for achieving this target. Regard to existing constraints. 73 companies for a seven years period (1384-1390) were selected as sample. With respect to the data, fixed effect regression was used. Our result show that there is a positive and significant association between firm size, net working capital, operating cash flows and financing cash flows with cash holding and variables such as leverage, growth option, variability of cash flows, close cash substitutes and level of investment opportunities have no significant relationship with cash holding. Furthermore the results of second part of this research shows that excess cash holing in both form of transitory and persistent have no influence on shareholder value.
