Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries
The empirical literature on the association of cash flow volatility and debt maturity structure is limited and inconclusive. This article investigates the impact of cash flow volatility on debt maturity structure, and the interaction effect of cash flow volatility and fixed assets on debt maturity s...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Cogent OA
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/112889/1/112889.pdf |
| _version_ | 1825940215147003904 |
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| author | Naser, Abdulrahman Matemilola, Bolaji Tunde Bany-Ariffin, A. N. |
| author_facet | Naser, Abdulrahman Matemilola, Bolaji Tunde Bany-Ariffin, A. N. |
| author_sort | Naser, Abdulrahman |
| collection | UPM |
| description | The empirical literature on the association of cash flow volatility and debt maturity structure is limited and inconclusive. This article investigates the impact of cash flow volatility on debt maturity structure, and the interaction effect of cash flow volatility and fixed assets on debt maturity structure. This article applies the two-step system generalized method of moments (GMM) method and uses 1672 non-financial public listed firms for a 10-year period starting from 2011 to 2020. The findings indicate a significant negative association between cash flow volatility and debt maturity structure of firms in Middle East and North Africa (MENA) and African countries. Moreover, the interaction of cash flow volatility and fixed assets is significantly and negatively related to debt maturity structure in MENA and African countries. These findings suggest the need for firm-managers to effectively manage the cash flow risk and consider collateral benefits of fixed assets when choosing the debt maturity structure. © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. |
| first_indexed | 2024-12-09T02:24:49Z |
| format | Article |
| id | upm.eprints-112889 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-12-09T02:24:49Z |
| publishDate | 2024 |
| publisher | Cogent OA |
| record_format | dspace |
| spelling | upm.eprints-1128892024-10-28T08:12:18Z http://psasir.upm.edu.my/id/eprint/112889/ Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries Naser, Abdulrahman Matemilola, Bolaji Tunde Bany-Ariffin, A. N. The empirical literature on the association of cash flow volatility and debt maturity structure is limited and inconclusive. This article investigates the impact of cash flow volatility on debt maturity structure, and the interaction effect of cash flow volatility and fixed assets on debt maturity structure. This article applies the two-step system generalized method of moments (GMM) method and uses 1672 non-financial public listed firms for a 10-year period starting from 2011 to 2020. The findings indicate a significant negative association between cash flow volatility and debt maturity structure of firms in Middle East and North Africa (MENA) and African countries. Moreover, the interaction of cash flow volatility and fixed assets is significantly and negatively related to debt maturity structure in MENA and African countries. These findings suggest the need for firm-managers to effectively manage the cash flow risk and consider collateral benefits of fixed assets when choosing the debt maturity structure. © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. Cogent OA 2024 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/112889/1/112889.pdf Naser, Abdulrahman and Matemilola, Bolaji Tunde and Bany-Ariffin, A. N. (2024) Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries. Cogent Business and Management, 11 (1). art. no. 2341842. ISSN 2331-1975 https://www.tandfonline.com/doi/full/10.1080/23311975.2024.2341842 10.1080/23311975.2024.2341842 |
| spellingShingle | Naser, Abdulrahman Matemilola, Bolaji Tunde Bany-Ariffin, A. N. Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries |
| title | Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries |
| title_full | Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries |
| title_fullStr | Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries |
| title_full_unstemmed | Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries |
| title_short | Interaction impact of cash flow volatility and fixed assets on debt maturity structure in MENA and African countries |
| title_sort | interaction impact of cash flow volatility and fixed assets on debt maturity structure in mena and african countries |
| url | http://psasir.upm.edu.my/id/eprint/112889/1/112889.pdf |
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