Asymmetric Cash Flow Sensitivity of Cash Holdings
This research documents the asymmetric corporate cashflow sensitivity of cashholdings. Using a sample of 630 firm-years(companies in Tehran Stock Exchange were selected for years 1384 to1390) the corporate reactions to changes in their cash holdings in caseof negative and positive cash flows were ex...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
University of Tehran
2014-02-01
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| Series: | بررسیهای حسابداری و حسابرسی |
| Subjects: | |
| Online Access: | https://acctgrev.ut.ac.ir/article_36588_fc664d17b83571478c32a2091b198dd5.pdf |
| _version_ | 1811245043503071232 |
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| author | Sahar Sepasi Malek Yabloui Khamsaloui |
| author_facet | Sahar Sepasi Malek Yabloui Khamsaloui |
| author_sort | Sahar Sepasi |
| collection | DOAJ |
| description | This research documents the asymmetric corporate cashflow sensitivity of cashholdings. Using a sample of 630 firm-years(companies in Tehran Stock Exchange were selected for years 1384 to1390) the corporate reactions to changes in their cash holdings in caseof negative and positive cash flows were examined. For testing thehypothesisabout asymmetric cash flow sensitivity, Riddick andWhited (2009) models were used. Results show that firms havedifferent level of responses to their cash holding when faces positiveand negative cash flow: meaning that the relation between cashholding and positive cash flow is different than relation between cashholding and negative cash flow. We document that the cash flowsensitivity of cash flow is negative when a firm faces a positive cashflow environment, and the cash flow sensitivity of cash flow ispositive when a firm faces negative cash flow. This asymmetry maybe due to several reasons, including binding project contracts, badnews withholding and agency costs. |
| first_indexed | 2024-04-12T14:34:16Z |
| format | Article |
| id | doaj.art-6b548eb9e14d466ab67a5273f21de9fb |
| institution | Directory Open Access Journal |
| issn | 2645-8020 2645-8039 |
| language | fas |
| last_indexed | 2024-04-12T14:34:16Z |
| publishDate | 2014-02-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | بررسیهای حسابداری و حسابرسی |
| spelling | doaj.art-6b548eb9e14d466ab67a5273f21de9fb2022-12-22T03:29:09ZfasUniversity of Tehranبررسیهای حسابداری و حسابرسی2645-80202645-80392014-02-01204617610.22059/acctgrev.2014.3658836588Asymmetric Cash Flow Sensitivity of Cash HoldingsSahar Sepasi0Malek Yabloui Khamsaloui1Assistant Prof. in Accounting, Tarbiat Modares University, Tehran, IranPh.D. Student in Accounting, Islamic Azad University, Science and Research Branch, Kermanshah, IranThis research documents the asymmetric corporate cashflow sensitivity of cashholdings. Using a sample of 630 firm-years(companies in Tehran Stock Exchange were selected for years 1384 to1390) the corporate reactions to changes in their cash holdings in caseof negative and positive cash flows were examined. For testing thehypothesisabout asymmetric cash flow sensitivity, Riddick andWhited (2009) models were used. Results show that firms havedifferent level of responses to their cash holding when faces positiveand negative cash flow: meaning that the relation between cashholding and positive cash flow is different than relation between cashholding and negative cash flow. We document that the cash flowsensitivity of cash flow is negative when a firm faces a positive cashflow environment, and the cash flow sensitivity of cash flow ispositive when a firm faces negative cash flow. This asymmetry maybe due to several reasons, including binding project contracts, badnews withholding and agency costs.https://acctgrev.ut.ac.ir/article_36588_fc664d17b83571478c32a2091b198dd5.pdfAsymmetric SensitivityCash FlowCash Holdings |
| spellingShingle | Sahar Sepasi Malek Yabloui Khamsaloui Asymmetric Cash Flow Sensitivity of Cash Holdings بررسیهای حسابداری و حسابرسی Asymmetric Sensitivity Cash Flow Cash Holdings |
| title | Asymmetric Cash Flow Sensitivity of Cash Holdings |
| title_full | Asymmetric Cash Flow Sensitivity of Cash Holdings |
| title_fullStr | Asymmetric Cash Flow Sensitivity of Cash Holdings |
| title_full_unstemmed | Asymmetric Cash Flow Sensitivity of Cash Holdings |
| title_short | Asymmetric Cash Flow Sensitivity of Cash Holdings |
| title_sort | asymmetric cash flow sensitivity of cash holdings |
| topic | Asymmetric Sensitivity Cash Flow Cash Holdings |
| url | https://acctgrev.ut.ac.ir/article_36588_fc664d17b83571478c32a2091b198dd5.pdf |
| work_keys_str_mv | AT saharsepasi asymmetriccashflowsensitivityofcashholdings AT malekyablouikhamsaloui asymmetriccashflowsensitivityofcashholdings |