Do financing constraints hinder corporate fixed investment? Evidence from the Amman stock exchange

Khataybeh, Mohammad

doi:10.1080/23311975.2021.1910161

Cited by 5 publications

(2 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the same vein, McLean [32] found that firms faced with higher R&D expenses increase their cash holdings as a precaution. Firms in Jordan have been found to hold higher levels of cash when they have higher growth opportunities [33,34], consistent with the speculative motive. On the contrary, it has been found that firms hold more cash in case of higher agency problems at the firm and country levels [32,35].…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 68%

Government Ownership and Corporate Cash Holdings: Empirical Evidence from the Amman Stock Exchange

et al. 2022

View full text Add to dashboard Cite

While the effect of ownership structure on the level of cash holdings has been widely examined, that of government ownership has been understudied. Using a generalized method of moments (GMM) estimation on the panel data of 107 Jordanian firms listed on the Amman Stock Exchange, this research adds to the limited literature on the relationship between government ownership and the level of corporate cash holdings. Consistent with agency theory, the findings reveal that firms with government ownership hold higher levels of cash and that such ownership creates agency problems. Other types of ownership, namely individual, foreign, and block holders, were found to be insignificant. The results provide an important implication for policy makers in Jordan: in order to reduce agency problems associated with government ownership, the government should revise its ownership policy and ensure it specifies clear purposes and expectations of business ownership and how it intends to exercise its rights as owner.

show abstract

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 68%

Government Ownership and Corporate Cash Holdings: Empirical Evidence from the Amman Stock Exchange

et al. 2022

View full text Add to dashboard Cite

show abstract

“…A possible explanation for this is that it is not costly for firms in Jordan to not have optimal cash levels, which is not surprising, since the financial system in Jordan is more bank-oriented; i.e. firms in Jordan depend on banks to finance their activities (Zeitun and Benjelloun, 2013;Khataybeh, 2021). Moreover, according to our results, firms in Jordan save cash from their cash flows, so staying away from their targets target is not costly.…”

Section: Resultsmentioning

confidence: 99%

Corporate cash holdings and disclosure violations: an empirical investigation of Jordanian listed companies

Alsmadi

Alkhataybeh

Shakhatreh

2022

JIABR

View full text Add to dashboard Cite

Purpose This study aims to examine the impact of low-quality financial statements; that is, disclosure violations reported by the Securities Exchange Commission related to the level of cash holdings (CH) of firms listed on the Amman Stock Exchange (ASE). Design/methodology/approach Using panel data from 107 ASE-listed companies from 2009 to 2018, the study uses generalized method of moment estimation to examine the research hypothesis. This study hypothesize that disclosure violations can affect the level of CH and control for several variables that affect this level. Findings The results show that disclosure violations significantly affect the level of CH and that cash flow, capital expenditure and debt issues have a significantly positive impact on corporate CH. On the other hand, the market to book ratio and sales growth were found to be insignificant. Research limitations/implications The limitations of the research include the fact that information on research and development and equity issues were not available, so were not included in the examination. Practical implications It is recommended that managers enhance the quality of disclosures since this allows them to hold lower levels of cash and exploit more investment opportunities. Policymakers are recommended to supervise firm disclosures closely and create ratings for disclosure quality. Originality/value To the best of the author’s knowledge, this is the first empirical research on the association between proven low-quality disclosures and the level of corporate CH among Jordanian listed companies.

show abstract

Ownership structure and corporate cash holdings in Jordan: the role of government ownership

Alkhataybeh,

AlSmadi,

Al-Tarawneh

et al. 2023

Journal of Applied Economics

View full text Add to dashboard Cite

Do financing constraints hinder corporate fixed investment? Evidence from the Amman stock exchange

Cited by 5 publications

References 41 publications

Government Ownership and Corporate Cash Holdings: Empirical Evidence from the Amman Stock Exchange

Government Ownership and Corporate Cash Holdings: Empirical Evidence from the Amman Stock Exchange

Corporate cash holdings and disclosure violations: an empirical investigation of Jordanian listed companies

Ownership structure and corporate cash holdings in Jordan: the role of government ownership

Contact Info

Product

Resources

About