Ownership structure and inventory policy

Tribó, Josep A.

doi:10.1016/j.ijpe.2006.12.011

Cited by 13 publications

(5 citation statements)

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“…One of the issues considered in the analysis of the balance sheet by financial analysts is inventory changes as one of the main items of circulating capital and its analysis (Steinker & Hoberg, 2014). Tribo (2007) in a study review the effect of ownership structure on inventory policies in Spanish companies. The dependent variable was inventory level and independent variables, including institutional ownership and manager's ownership.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Since inventory is one of the most important items of current assets, given the absence of inflationary conditions, retention too much inventory can reduce internal efficiency. But in countries such as Iran that there is a high inflation rate, it may not lead to not only lower rates of returns but also eliminated loss of monetary items (Tribo, 2007).…”

Section: Introductionmentioning

confidence: 99%

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The Relationship between Abnormal Growth of Inventory and Long-Term Stock Returns of Companies Listed in Tehran Stock Exchange

Teymoori¹,

Khodayar²,

Esfahani³

2016

JFRM

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This study aimed to investigate the impact of seasonal fluctuations in annual and long-term inventory on stock returns of companies listed on the Stock Exchange in Tehran. A sample of 84 listed in the Tehran Stock Exchange, which their data for a period of 5 years (1388 to 1392) were the statistical analysis. Model study of research Steinker and Hoberg (2014) has been adapted where long-term stock return as the dependent variable is a function of the independent variables. The findings suggest that there is a significant relationship between annual and seasonal abnormal growth of inventory and long-term stock returns. This finding indicates that the capital market has reacted to inventory changes at different times. Based on the above results, it can be covered in the basic hypotheses accepted.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Relationship between Abnormal Growth of Inventory and Long-Term Stock Returns of Companies Listed in Tehran Stock Exchange

Teymoori¹,

Khodayar²,

Esfahani³

2016

JFRM

View full text Add to dashboard Cite

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“…to invest in negative NPV projects in order to increase the resources under their control. This free cash flow hypothesis has been tested by empirical research on numerous occasions (Bates, 2005; Blanchard et al, 1994; Jensen, 1986; Pindado and de la Torre, 2009; Richardson, 2006; Tribó, 2007). Liu et al (2018) show that when capital is easily available and discount rates are low financial resources are considered as ‘free’ resources, which exacerbates the problem of corporate overinvestment.…”

Section: Introductionmentioning

confidence: 99%

Overinvestment, leverage and financial system liquidity: A challenging approach

López‐de‐Foronda

López-de-Silanes

López‐Iturriaga

et al. 2019

BRQ Business Research Quarterly

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The aim of this paper is to analyse the influence of financial system liquidity and corporate leverage on a firm's overinvestment. We posit that when external funds are easily available, as in expansionary monetary periods, debt loses its traditional role as a managerial control mechanism. Instead, the supply of systemic liquidity results in corporate leverage exacerbating the problem of overinvestment. Using a sample of over 12,400 companies from 25 OECD countries between 2003 and 2014, our results show a significant and positive relationship between corporate leverage and overinvestment when the liquidity of the financial system is high, confirming the shift in the role played by leverage. At the macroeconomic level, our research raises certain caveats concerning worldwide liquidity injections. At the microeconomic level, our study shows that the disciplinary role of debt might become a false friend when money abounds.

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“…Inventory is one of the most important components of current assets in any business units and management of inventory may increase profitability, significantly (Christie & Zimmerman, 1994;Krautter, 1999;Tribó, 2007). Chekili (2012) investigated the effect of some governance mechanisms on earnings management listed on Tunisian firms over the [2000][2001][2002][2003][2004][2005][2006][2007][2008][2009] by considering 200 observations.…”

Section: Introductionmentioning

confidence: 99%