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This study analyzes the influence of operating capital on a firm’s profitability in the manufacturing sector of China. The study investigates that operating capital develops a non-linear relationship with firm profitability by using the ordinary least square (OLS), fixed effect (FE), and...
Persistent link: https://www.econbiz.de/10013164356
borrow domestically, finding this behavior is associated with shareholder payouts and some domestic investment spending …
Persistent link: https://www.econbiz.de/10011980274
We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …
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shocks to their borrowing cost. It develops a dynamic model of corporate investment and financing decisions subject to real … size distribution and replicates the untargeted negative relationship between firm size and investment rates and cash … holdings. Cash holdings help firms sustain investment when access to debt becomes costly or restricted. However, a shock to …
Persistent link: https://www.econbiz.de/10012655339
opportunities and investment demand. Financial development primarily affects firms' external financing constraints. (2) Large firms …
Persistent link: https://www.econbiz.de/10009781240
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This paper uses a large panel of Pakistani non-financial firms over the period 2000–2013 to examine the role of financial constraints in establishing the relationship between cash flow and external financing. The results reveal that there exists a negative and significant relationship between...
Persistent link: https://www.econbiz.de/10011883176
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