The Relationships Among Financial Constraint, Cash Value and Net Investment in Firms Listed

Authors

Abstract

Abstract

The aim of this study is to investigate relationships among financial constraint, cash value and investment. Financial constraint which most of firms struggle with is one of important issues for all companies in world-wide. The study samples consist of 86 firms listed in TSE for period of 1384-1388(430 year-firm). Three index WW, KZ and KZIR are used for determining whether firms have financial constraint or not. The method of this study is descriptive. Our research method is correlation type and uses backward method for investigating correlation among variables.
The results from first hypothesis show that holding optimal level of cash is very important for firms and cash increases firms' value in constrained more than unconstrained firms. Increasing in firm cash value lead to increasing stockholders wealth.
Results from second hypothesis shows that cash and investment have positive relationship. Also favoring to companies always is seeking to maximum their profit and return, one of ways to achieve this goal is investment. Third hypothesis suggest that changing in level of cash holding result in excess return in constrained firms more than unconstrained firms. This changing in level of cash holding can improve firm`s return and performance.

Keywords

References

 کمیته فنی، نشریه شماره 160، (1390)، استانداردهای حسابداری ایران، تهران، سازمان حسابرسی.
 حصارزاده، ر. ، و تهرانی، ر. (1387). تأثیر جریانهای نقدی آزاد و محدودیت در تأمین مالی بر بیش سرمایه گذاری و کم سرمایه گذاری، فصلنامه تحقیقات حسابداری، شماره 3، 3-2.
 درخور، س. (1390). بررسی رابطه بین محدودیت مالی، ارزش وجه نقد و سرمایه‌گذاری، پایان نامه کارشناسی ارشد حسابداری، دانشکده حسابداری، دانشگاه علوم و تحقیقات تهران.
 نقی نژاد، ب. ، و کاشانی پور، ر. (1387). بررسی اثر محدودیتهای مالی بر حساسیت جریان نقدی-سرمایه گذاری، فصلنامه تحقیقات حسابداری، شماره 2: 7-4.
 Allayannis, G. ,Mozumdar,A. ,2004. The impact of negative cash flow and influential observations on investment-cash flow sensitivity estimates. Journal of Banking & Finance 28,901-930
 Denis, J. , David, Sibilkov. , Valeriy, 2007, Financial constraint, investment and the Value of Cash Holding. Working Paper
Dongmi Li,2010. Financial constraints: R&D investment, and stock returns. Rady School of Management University of Colifornia San Diego 1-6,22-24
Fazzari, M. ,Steven, Hubbard, R. ,Glenn and Petersen, C. ,Bruce. ,1988. Investment-Cash Flow Sensitivities are Useful.
Kaplan, N. ,Steven, and Zingales, Luigi. ,1997. Investment-Cash Flow Sensitivities are not Valid Measures of Financing Constraints.
 

Files

History

  • Receive Date: 13 December 2012
  • Revise Date: 30 January 2021
  • Accept Date: 01 November 2013

Share

How to cite

Statistics