The relationship between cash value and accounting conservatism: The role of controlling shareholders

Lin, Chen; Chan, Min-Lee; Chien, I-Hsin; Li, Kuan-Hua

doi:10.1016/j.iref.2017.07.017

Cited by 16 publications

(11 citation statements)

References 39 publications

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“…International Journal of Accounting and Financial Reporting ISSN 2162-3082 2019  There is a significant and negative effect of conservatism on CASH for all models, except models (3) and (5). This result supports the second group of studies, such as Xiangyu et al (2015), but it is not consistent with the first group of studies, like Al-Amri et al 2015, Lin et al (2018) and Hamad et al (2019).…”

Section: Regression Results and Analysiscontrasting

confidence: 56%

The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

Soliman

2019

ijafr

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Recent studies are interested in the determinants of cash holdings (CASH), some of these studies focus on conservatism, as one of these determinants. In light of a debate on the nature of the association between conservatism and CASH, this paper discusses and investigates the answers for three questions, the first question about the direct association between conservatism and CASH, the second question about the moderating effect of firm characteristics on this association, the third question about the effect of adopting Egyptian Accounting Standards (EAS) since 2016 on the last association. This paper focuses on Egyptian listed firms in Egyptian Stock Exchange (EGX), especially EGX 100, for six years period from 2013 to 2018 for 11 main sectors, 125 firms and 703 unbalances panel data observations. The findings indicate that (1) conservatism has a negative effect on CASH, (2) only firm size has a moderating and positive effect on the association between conservatism and CASH, (3) firm leverage, firm growth opportunity, and firm managerial ownership do not have a moderating effect on the last association. (4) Adopting EAS in 2016 by Egyptian listed firms gives the management of these firms' suitable chances to control CASH using its association with conservatism.

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Section: Regression Results and Analysiscontrasting

confidence: 56%

The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

Soliman

2019

ijafr

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“…‫ةذا‬ ‫ل‬ ‫ةتيدف‬ ‫اس‬ ‫ةد‬ ‫العدي‬ ‫ةن‬ ‫م‬ ‫ةات‬ ‫اس‬ ‫الدر‬ (Opler, et al, 1999;Harford, et al, 2008;Foley, et al, 2007 (Le, et al, 2018) . (Lin, et al, 2018;Opler, et al, 1999) .…”

Section: -‫البحث‬ ‫مشكمة‬mentioning

confidence: 99%

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

فودة¹

2020

مجلة الاسکندریة للبحوث المحاسبیة

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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.

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“…Tendo em vista que a literatura traz uma relação positiva entre o conservadorismo e o dinheiro (LIN et al, 2018) e ela é vista de maneira prática neste estudo, ao aumentar a velocidade de ajuste do caixa, aceita-se a Hipótese 1 desse estudo.…”

Section: Variáveisunclassified

“…A temática referente as disponibilidades de caixa em finanças corporativas tornam-se de extrema relevância em estudos recentes, e a relação com a velocidade do ajuste do caixa tem sido uma das questões centrais na literatura (LIN et al, 2018;RAO, 2018). De fato, a forma como as empresas evidenciam à meta para o caixa "ideal" é fundamental para inúmeros interessados, dentre esses, gestores e acionistas, visto que a decorrência da combinação errada das disponibilidades de caixa pode afetar severamente o desempenho e a sobrevivência da organização (MURITALA, 2012).…”

Section: Introductionunclassified

“…Este estudo justifica-se por verificar um provável efeito na relação entre conservadorismo contábil e velocidade de ajuste de caixa, importantes discussões literárias. De acordo com Lin, et al (2018) as empresas que adotam o conservadorismo contábil têm menor probabilidade de participar de atividades de superinvestimento, porque o reconhecimento oportuno de perdas limita a quantidade de caixa disponível para os administradores. Com isso, as empresas que detém excesso de caixa se adotam o conservadorismo contábil podem minimizar fatores negativos, pela perspectiva do investidor ao destino da disponibilidade alta de caixa, envolvida nessas questões.…”

Section: Introductionunclassified

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Efeito Do Conservadorismo Contábil Na Velocidade Do Ajuste Do Caixa

Canton

Müller

Silva

et al. 2019

RGO

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É possível destacar a importância dos aspectos das disponibilidades de caixa corporativos visto as discussões sob várias lentes na literatura. Nessa conjuntura, percebe-se que a velocidade com que as empresas se ajustam ao nível de caixa “ideal” é de extrema relevância para área de Finanças Corporativas. Subjacente a essa afirmação, este artigo tem por objetivo verificar o efeito do conservadorismo contábil na velocidade de ajuste do caixa. Para atender ao objetivo, a velocidade de ajuste do caixa segue o Método Generalizado de Momentos (GMM) por Arellano-Bond. A amostra da pesquisa considera todas as companhias listadas na B3 (Brasil, Bolsa, Balcão) não financeiras e que continham todas as informações necessárias para a análise no período de 2014 a 2018. Os dados necessários, tanto para o cálculo do modelo econométrico da velocidade de ajuste do caixa quanto para o cálculo do conservadorismo contábil foram coletados a partir da base de dados Thomsom Reuters®. Assim, os principais resultados apontam que o conservadorismo contábil é benéfico a velocidade de ajuste, fazendo com que as empresas retornem mais rapidamente ao caixa ideal. A partir dos achados, o estudo contribui para o desenvolvimento não só acadêmico, mas com impacto no mercado, por tratar de questões ligadas a sobrevivência da empresa, auxiliando stakeholders na identificação da situação e avaliação da liquidez de caixa das companhias analisadas.

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The relationship between cash value and accounting conservatism: The role of controlling shareholders

Cited by 16 publications

References 39 publications

The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

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

Efeito Do Conservadorismo Contábil Na Velocidade Do Ajuste Do Caixa

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