A Panel Analysis of Liquidity Constraints and Firm Investment

Hsiao, Chêng; Tahmiscioglu, A. Kamil

doi:10.2307/2965693

Cited by 42 publications

(42 citation statements)

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“…Financial liquidity affects a firm's strategy and performance through investment constraints (e.g., Bond and Meghir 1994), creating agency problems between the firm and its shareholders (Fazzari, Hubbard, and Petersen 1988;Hsiao and Tahmiscioglu 1997). A high acid ratio suggests cash availability to fund investments with superior earnings potential.…”

Section: Dual Distribution and Financial Liquiditymentioning

confidence: 99%

Dual Distribution and Intangible Firm Value: Franchising in Restaurant Chains

Srinivasan

2006

SSRN Journal

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Section: Dual Distribution and Financial Liquiditymentioning

confidence: 99%

Dual Distribution and Intangible Firm Value: Franchising in Restaurant Chains

Srinivasan

2006

SSRN Journal

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“…However, the liquidity position could be deteriorated with the increase in paid up capital. Hsiao and Tahmiscioglu (1997) reported that liquidity could be affected by substantial differences across firms in their investment behavior and firms characteristics. Enyi (2005) studied the relative solvency level of 25 sample firms and reported that, the firms with adequate working capital associated with their operational size had performed better than firms which had less working capital in terms of their operational size.…”

Section: Introductionmentioning

confidence: 99%

A study on relationship between working capital and profitability

Ghodrati¹,

Ghanbari²

2014

10.5267/j.msl

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This paper studies the relationship between working capital management and profitability of accepted corporations in Tehran Stock Exchange over the period [2008][2009][2010][2011][2012]. The study selected 66 firms as a statistical sample based on Cochran formula and simple random selection. In this study, variables including the average period of collecting accordance, periods of circulation of inventories, the average period of debt payment, and cycle of cash conversion on the factories operating profits are studied. The research method is applied and collection of data is solidarity, the Pierson and Regression solidarity are used. Results show that variables of capital investment management and profitability were in opposite direction. If the period of collecting accordance, period of debt payment, period of circulation of inventories and the cycle of cash conversion increase, it decreases the period profitability and the manager can decrease the period of debt payment, period of cash conversion to the least amount of positive value for affiliate.

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“…Se esta situação ocorresse, esperarse-ia que o coeficiente fosse maior para as firmas com maiores lucros, isto é, para as firmas menos intensivas em capital, o que não ocorre. Assim, pode-se inferir que as firmas mais intensivas em capital podem ser consideradas mais restritas financeiramente devido a elevados custos fixos e maior exigência de capital que as menos intensivas, como apontado por Hsiao & Tahmiscioglu (1997). Para Devereux & Schiantarelli (1990), o maior coeficiente do fluxo de caixa para as firmas de maior porte pode refletir a possibilidade de tais firmas serem mais propensas as terem um fluxo de caixa relativamente baixo e uma estrutura de propriedade mais diversificada, aumentando os custos de agência.…”

Section: Análise Econômica Dos Resultadosunclassified

“…A intensidade de capital é definida pela relação capitalproduto (K/Y), utilizando-se o estoque de capital como razão das vendas mais variação do estoque de bens finais K V E + ∆ , segundo sugestão de Jorgenson (1968). Na escolha do ponto de divisão em alta e baixa intensidade da capital considerou-se o mesmo critério adotado por Hsiao & Tahmiscioglu (1997), em que os autores analisam os coeficientes de liquidez contra os seus respectivos valores médios de intensidade de capital como uma forma de definir o ponto de corte. A Figura 2 apresenta o gráfico de dispersão dos coeficientes de liquidez estimados contra o grau de intensidade de capital.…”

Section: Heterogeneidade Das Firmasunclassified

Uma abordagem bayesiana para decisões de investimentos

Kalatzis¹,

Azzoni²,

Achcar

2006

Pesqui. Oper.

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ResumoO objetivo deste trabalho é identificar a presença de restrição financeira nas decisões de investimento das firmas brasileiras a partir de uma análise econométrica bayesiana. A análise é feita através de uma amostra de 497 empresas brasileiras, considerando o comportamento heterogêneo não observado das firmas, através de um componente específico para cada firma. Para considerar o efeito temporal não observável que afeta a todas as firmas, introduziu-se um componente temporal. Com o objetivo de contornar a presença de heterocedasticidade e identificar a presença de restrição financeira as firmas são agrupadas conforme o grau de intensidade de capital, o que diferencia este trabalho dos demais realizados para o Brasil, que agrupam as firmas por tamanho e utilizam a abordagem clássica. Palavras-chave: decisões de investimento; restrições financeiras; intensidade de capital; dados longitudinais. AbstractThis study analyses the investment decisions of 497 Brazilian firms in the period 1986-97. The role of financial constraints are considered both theoretically and empirically, through the use of Bayesian econometric models. We use longitudinal data, with firm-specific information for different years, allowing for the abandonment of the representative firm model. Information on capital intensity at the firm level allows for the separation of firms according to this variable, and makes it possible to consider information asymmetries. We estimate two different models, and the results suggest the presence of financial constraints, especially for capital-intensive firms.

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A Panel Analysis of Liquidity Constraints and Firm Investment

Cited by 42 publications

References 0 publications

Dual Distribution and Intangible Firm Value: Franchising in Restaurant Chains

Dual Distribution and Intangible Firm Value: Franchising in Restaurant Chains

A study on relationship between working capital and profitability

Uma abordagem bayesiana para decisões de investimentos

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