Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level Uncertainty
Cash is one of the most important and critical resources in each profit entity, and exploring its relevance to stock returns and the extent to which it is influenced by the firm-level uncertainty is one of the most important issues in corporate decisions. The present study investigated the relations...
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| Format: | Article |
| Language: | English |
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Mashhad: Behzad Hassannezhad Kashani
2022-04-01
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| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_151288_e09e3d1578b8738d4842553a53b41820.pdf |
| _version_ | 1797744406759997440 |
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| author | Fakhreddin Fakhrhosseini Meysam Kaviani |
| author_facet | Fakhreddin Fakhrhosseini Meysam Kaviani |
| author_sort | Fakhreddin Fakhrhosseini |
| collection | DOAJ |
| description | Cash is one of the most important and critical resources in each profit entity, and exploring its relevance to stock returns and the extent to which it is influenced by the firm-level uncertainty is one of the most important issues in corporate decisions. The present study investigated the relationship between cash holdings, financial leverage, and excess stock returns considering the role of uncertainty level. This study uses all publicly firms on Iranian stock exchange. Data base on records of financial statements and market data of all Iranian firms that are listed on Iran Stock Exchange, and that are subject to the regulations by the Capital Market Authority in Iran. In addition, we use data from Iranian stock exchange for the period 2004–2018 to construct variables based on the information contained in financial statements. The results indicated that financial leverage and changes in cash holdings affect excess stock returns, and cash holdings are affected by the firm-level uncertainty. This paper fulfils an identified the role of Firm-level uncertainty in cash management, capital structure, and investment decisions. |
| first_indexed | 2024-03-12T15:09:21Z |
| format | Article |
| id | doaj.art-8a468b32196043c984ce7313881db32b |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T15:09:21Z |
| publishDate | 2022-04-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-8a468b32196043c984ce7313881db32b2023-08-11T20:24:16ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262022-04-019422723510.5281/zenodo.6645008151288Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level UncertaintyFakhreddin Fakhrhosseini0Meysam Kaviani1Department of Accounting, Management and Accounting Faculty, Islamic Azad University Tonekabon Branch, Tonekabon, IranDepartment of Finance, Management and Accounting Faculty, Islamic Azad University Karaj Branch, Alborz, IranCash is one of the most important and critical resources in each profit entity, and exploring its relevance to stock returns and the extent to which it is influenced by the firm-level uncertainty is one of the most important issues in corporate decisions. The present study investigated the relationship between cash holdings, financial leverage, and excess stock returns considering the role of uncertainty level. This study uses all publicly firms on Iranian stock exchange. Data base on records of financial statements and market data of all Iranian firms that are listed on Iran Stock Exchange, and that are subject to the regulations by the Capital Market Authority in Iran. In addition, we use data from Iranian stock exchange for the period 2004–2018 to construct variables based on the information contained in financial statements. The results indicated that financial leverage and changes in cash holdings affect excess stock returns, and cash holdings are affected by the firm-level uncertainty. This paper fulfils an identified the role of Firm-level uncertainty in cash management, capital structure, and investment decisions.https://www.ijmae.com/article_151288_e09e3d1578b8738d4842553a53b41820.pdfuncertaintyleveragecash holdingsexcess stock returns |
| spellingShingle | Fakhreddin Fakhrhosseini Meysam Kaviani Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level Uncertainty International Journal of Management, Accounting and Economics uncertainty leverage cash holdings excess stock returns |
| title | Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level Uncertainty |
| title_full | Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level Uncertainty |
| title_fullStr | Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level Uncertainty |
| title_full_unstemmed | Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level Uncertainty |
| title_short | Cash Holdings, Financial Leverage, and Excess Stock Returns: The Role of Firm-Level Uncertainty |
| title_sort | cash holdings financial leverage and excess stock returns the role of firm level uncertainty |
| topic | uncertainty leverage cash holdings excess stock returns |
| url | https://www.ijmae.com/article_151288_e09e3d1578b8738d4842553a53b41820.pdf |
| work_keys_str_mv | AT fakhreddinfakhrhosseini cashholdingsfinancialleverageandexcessstockreturnstheroleoffirmleveluncertainty AT meysamkaviani cashholdingsfinancialleverageandexcessstockreturnstheroleoffirmleveluncertainty |