7,299 research outputs found
On the negative relation between investment-cash flow sensitivities and cash-cash flow.
No full textWe predict and find empirical support for a negative relation between the firm’s investment-cash flow sensitivity and cash-cash flow sensitivity, two measures suggested to capture the concept of financing constraints. This negative relation on the firm-level stems from the fact that both investments and the cash account are uses of funds competing for limited available cash flows. Additionally, we find that the investment-cash flow sensitivity is a better predictor for the firm’s constraint-status than the cash-cash flow sensitivity for a longitudinal sample of 1,233 U.S.-based listed firms using an evaluative framework based upon ex-post evaluation of the firmvarying sensitivities.financing constraints; investment-cash flow sensitivities; cash-cash flow sensitivities; firm-varying sensitivities;
Evidence on the dynamics of investment-cash flow sensitivity
No full textAn important debate in the literature relates to the use of investment-cash flow sensitivity (ICFS) to measure finance constraint faced by firms. This debate is grounded on four prominent issues: a priori sorting of firms, treatment of distressed firms, use of cash flow to represent only internal liquidity of firms and restricting firms to a single regime. In this paper we investigate these issues using a sample of 2676 Indian manufacturing firms over the period 1994 to 2009. We use firm level estimates of ICFS to sort firms into positively cash flow sensitive (PCF-sensitive) group, cash flow insensitive (CF-insensitive) group and, negatively cash flow sensitive (NCF-sensitive) group. We find that all three group of firms start with high levels of investment. But, only the PCF-sensitive firms have high level of cash flows. With age, the investment of all three groups of firms remains stationary. But, for CF-insensitive firms only the cash flow rises with age. Further, we use a multinomial logistic regression to study the determinants of ICFS in the three groups. The results suggest that the interpretation of NCF-sensitive, PCF-sensitive and CF-insensitive as distressed, financially constrained and financially unconstrained, respectively, can be contested by the data.investment-cash flow sensitivity; finance constraint; distress; multinomial logistic regression
Bibliographics for the 983 eprints in the live archives of E-LIS : trends and status report up to 7th July 2004, based on author-self-archiving metadata
No full textThe priority for ideas and philosophy related to "Network Theory" have been traced back and documented by Braun(2004),and credit goes to Karinthy(1929).The IT has empowered to realise it, as the most practical phenomena and it is no more a humour. The OAI (Open Archives Initiatives)and ACIS (Academic Contributor Information System)are progressive in the direction ,which may lead to realise the "Collective Genius" at global level. Focus of present study is on Author-Self-Archiving (A-S-A)Metadata of the 983 Eprints in the Live Archives of the E-LIS (EPrints of Library and Information Science),which were approved till 7th July 2004.The A-S-A Metadata was used for librametric analysis. Self-explanatory bibliographics are illustrated.The highlights include: Conference papers (34%); highest approval, June 2004 (28%); published archives (76%);not refereed (52%); not in public domain (60%); highest self-archiving-author (De Robbio, Antonella).The Nos. of EPrints having single JITA domain specifications were: Theoretical and general aspects of libraries and information(27); Information use and sociology of information(80);Users,literacy and reading(13);Libraries as physical collections(30);Publishing and legal issues(57);Management(13);Industry, profession and education(36);Information sources, supports, channels(113) ; Information treatment for information services, Information functions and techniques (101); Technical services libraries, archives and museums(25); Housing technologies(1); Information technology and library technology(92); and Inter-domainery (395) i.e. having specifications of two or more than two JITA classes
Is investment-cash flow sensitivity caused by agency costs or asymmetric information? Evidence from the UK
No full textWe investigate the investment-cash flow sensitivity of a large sample of the UK listed firms and confirm that investment is strongly cash flow-sensitive. Is this sensitivity a result of agency problems when managers with high discretion overinvest, or of asymmetric information when managers owning equity are underinvesting if the market (erroneously) demands too high a risk premium? We find that investment-cash flow sensitivity results mainly from the agency costs of free cash flow. The magnitude of the relationship depends on insider ownership in a non-monotonic way. Furthermore, we obtain that outside blockholders, such as financial institutions, the government, and industrial firms (only at high control levels), reduce the cash flow sensitivity of investment via effective monitoring. Finally, financial institutions appear to play a role in mitigating informational asymmetries between firms and capital markets. We corroborate our findings by performing additional tests based on the stochastic efficient frontier approach and power indices
Cash versus in-kind transfers: what do beneficiaries really want?
No full textMaitreesh Ghatak, Chinmaya Kumar, and Sandip Mitra examine the factors that determine whether beneficiaries prefer receiving in-kind or cash transfers
A Unified Shell model for Buoyancy-Driven Turbulence
No full textWe construct a unified shell model for stably stratified and convective turbulence. Shell model simulation of stably stratified flow in turbulent regime exhibit Bolgiano-Obukhbov (BO) scaling in which the kinetic energy spectrum varies as . However, simulation of convective turbulence shows Kolmogorov's spectrum. These results are consistent with the direct numerical simulations of Kumar {\em et al.} [Phys. Rev. E {\bf 90}, 023016 (2014)]. We also observe a dual scaling ( and ) for a limited range of parameters in stably stratified flow
Impact of Liquidity on the Futures–Cash Basis: Evidence from the Indian Market
No full textThe law of one price relies on enforcement by arbitragers who are expected to eliminate price differentials quickly. Arbitragers’ activities are constrained by liquidity of markets. However, large price differentials attract arbitrage activity enhancing the liquidity of markets. Using daily data on the NYSE index and related futures contracts, Roll, Schwartz, and Subrahmanyam (2007) document two-way Granger causality between the futures-cash basis and bid-ask spreads for stocks. We examine the issue using intra-day data on Indian single stock futures (SSF) contracts on Indian stocks and also consider the spread on the futures contracts. While the spreads in both the futures and cash markets affect futures-cash basis, we find that the futures-cash basis Granger-causes only the bid-ask spreads for SSFs but not the stocks.Futures-cash basis; Single stock futures; Indian stocks.
Does the Investment Opportunities Bias Affect the Investment-Cash Flow Sensitivities of Unlisted SMEs?
No full textUsing a panel of 5,999 small and medium-sized Belgian enterprises (SMEs) over the period 2002-2008, we identify three measures of investment opportunities suitable for unlisted firms. We then estimate firm-varying investment-cash flow sensitivities (ICFS) from reduced-form investment equations that include these measures, and compare them with those derived from a model that does not control for investment opportunities. We find that all our models yield similar ICFS estimates, which are significantly related to a wide set of proxies for financing constraints. These findings suggest that the ICFS of SMEs do not simply reflect investment opportunities. The investment opportunities bias may therefore have been overstated in previous literature.Financing constraints, Firm-varying investment-cash flow sensitivities, Investment opportunities, Gross added value.
Is Investment-Cash Flow Sensitivity Caused by the Agency Costs or Asymmetric Information? Evidence from the UK
No full textWe investigate the investment-cash flow sensitivity of a large sample of the UK listed firms and confirm that investment is strongly cash flow-sensitive.Is this suboptimal investment policy the result of agency problems when managers with high discretion overinvest, or of asymmetric information when managers owning equity are underinvesting if the market (erroneously) demands too high a risk premium?We find that the observed cash flow sensitivity results mainly from the agency costs of free cash flow.The magnitude of the relationship depends on insider ownership in a nonmonotonic way.Furthermore, we obtain that outside blockholders, such as financial institutions, the government, and industrial firms (only at high control levels), reduce the cash flow sensitivity of investment via effective monitoring.Finally, financial institutions appear to play a role in mitigating informational asymmetries between firms and capital markets.We corroborate our findings by performing additional tests based on the stochastic efficient frontier approach and power indices.investment-cash flow sensitivity;ownership and control;asymmetric information;liquidity constraints;agency costs of free cash flow;large shareholder monitoring;Shapley values
- …
