Are Excess Cash Holdings More Valuable to Firms in Times of Crisis? Financial Constraints and Governance Matter

Chang, Yanhao; Benson, Karen L.; Faff, Robert W.

doi:10.2139/ssrn.2395839

Cited by 1 publication

(3 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…‫ةة‬ ‫المالي‬ ‫ةود‬ ‫القي‬ ‫ةين‬ ‫ب‬ ‫ةة‬ ‫العالق‬ ‫ةار‬ ‫باختب‬ ‫ةت‬ ‫اىتم‬ ‫ةخ‬ ‫الت‬ ‫ةات‬ ‫اس‬ ‫الدر‬ ‫ةاة‬ ‫لنت‬ ‫ةو‬ ‫اععت‬ ‫مر‬ ‫خالل‬ ‫من‬ ‫الباحث‬ ‫يالحظ‬ ‫ةا‬ ‫مني‬ ‫ةبعض‬ ‫ال‬ ‫صن‬ ‫ةة‬ ‫بالنقدي‬ ‫ةاظ‬ ‫االحتف‬ ‫و‬ ‫ةركات‬ ‫لمش‬ (Almeida et al 2004;Han and Qui, 2007;McVanel and Perevalov, 2008;Chang et al 2013 (Troncoso and Vergara, 2010;Chen and Lai, 2012;Edwards, et al, 2016 (Chang, et al, 2016;Annuar, et al, 2014;Rego and Wilson, 2012;Foley, et al, 2007 (Dittmar and Mahrt-Smith, 2007) .…”

Section: -‫البحث‬ ‫مشكمة‬mentioning

confidence: 99%

“…‫ةة‬ ‫الوكال‬ ‫ا‬ ‫ةدا‬ ‫ل‬ ‫ةة‬ ‫ي‬ ‫النظر‬ ‫ىذه‬ ‫تلسس‬ ‫وبالتالخ‬ (Agency Motive) ‫ةك‬ ‫وذل‬ ‫ةة‬ ‫بالنقدي‬ ‫ةركات‬ ‫الش‬ ‫ةاظ‬ ‫الحتف‬ ‫ةاس‬ ‫كأس‬ ‫اسة‬ ‫در‬ ‫إليو‬ ‫صشارت‬ ‫لما‬ ‫ت‬ ‫قا‬ ‫و‬ (Harford, et al, 2008) . (Almeida, et al 2004;Arslan, et al 2006;Acharya, et al 2007;Chang, et al 2013 ‫ةة‬ ‫اس‬ ‫در‬ ‫ةد‬ ‫تع‬ (Fazzari, et al, 1988 (Agca, et al, 2008;Ascioglu, et al, 2008) ‫ةة‬ ‫المالي‬ ‫ةود‬ ‫القي‬ ‫ةن‬ ‫ي‬ ‫ةر‬ ‫لمتعبي‬ ‫ةة‬ ‫النقدي‬ ‫قات‬ ‫لمتد‬ ‫االستسمار‬ ‫حساسية‬ ‫مقياس‬ ‫استخدام‬ ‫مالءمة‬ ‫يمخ‬ ‫ةة‬ ‫اس‬ ‫در‬ ‫ةارت‬ ‫صش‬ ‫ةث‬ ‫حي‬ ‫ةركات؛‬ ‫لمش‬ (Agca, et al, 2008 (Ascioglu, et al, 2008…”

Section: -‫البحث‬ ‫مشكمة‬unclassified

“…Method: Maximum likelihood (ml) with observed information matrix Notes: -***, ** and * are significant at the 1%, 5% and 10% levels respectively. ‫أٌ:‬ ‫غير‬ (Opler, et al, 1999;Almeida, et al, 2004;Chang, et al, 2013) . (Harford, et al, 2008;Han and Qiu, 2007;Denis and Sibilkov, 2010) .…”

mentioning

confidence: 99%

See 2 more Smart Citations

الأثر الوسیط للتجنب الضریبى على العلاقة بین القیود المالیة للشرکات والإحتفاظ بالنقدیة-دراسة إختباریة

فودة¹

2020

مجلة الاسکندریة للبحوث المحاسبیة

View full text Add to dashboard Cite

This study aimed to investigate the direct relationship between corporate financial constraints and their behavior towards cash holding, in addition to examine the mediation effect of tax avoidance on the relationship between corporate financial constraints and cash holding behavior, using a random sample from (136) companies listed in the Egyptian Stock Exchange belonged to (14) different economic sectors, with a total of (1296) observations during the period from 2008 to 2018. The researcher used alternative measures of the research variables in order to check the Robustness of the results; Therefore, corporate financial constraints was measured using: (1) Cash-Cash Flow Sensitivity Index, (2) The Dividend Payout Indicator. Companies cash holding behavior was measured by determining: (1) the ratio of cash held to the total assets of company excluding cash, and (2) the proportion of cash held and adjusted by the sector which the company belongs. While, tax avoidance was measured by using three alternative measures: current effective tax rate, defferred tax rate, and permanent book tax differences. The researcher depended on the path analysis method to test the research hypotheses by designing a set of structural equations models to test the direct paths between corporate financial constraints and cash holding, in addition to investigate the direct paths between corporate financial constraints and tax avoidance, and between tax avoidance and cash holding, to determine the indirect relationship between corporate financial constraints and cash holding by mediating tax avoidance. The results indicated that there was a positive and direct relationship between corporate financial constraints and cash holding, as well as a positive and indirect relationship between corporate financial constraints and cash holding under mediating tax avoidance. Therefore, managers of financially restricted corporations intended to expand in applying tax avoidance practices and taking advantage of some vague aspects in tax laws to achieve tax savings and meet company's future cash needs as a result of its inability to finance them from external sources due to its financial constraints, and the precautionary motive of cash holding increased in financial constrained companies to face risks of discovering its tax avoidance by the authorities responsible for implementing tax laws.

show abstract