... in firms' information environments and financial constraints, and we present evidence consistent with these channels. Design/methodology/approach Using 52,478 US observations from 1996–2022, we measure options trading using annual dollar options volume and capture tax avoidance through GAAP, cash...

... of firms belonging to different ownership groups to global and domestic economic uncertainty. Additionally, we analyse financial constraints as a channel for the cash holding behaviour of firms. Sanket Mohapatra can be contacted at: sanketm@iima.ac.in 02 08 2024 31 12 2024 18 09 2025...

... with shareholder interests and weaker among firms facing financial constraints. We also find that real option intensity, organizational capital and innovation play mediating roles in this relationship. Research limitations/implications The measure of ambidexterity depends on a specific machine learning...

... supported by multiple robustness tests. Secondly, a smooth cash dividend policy enhances total factor productivity by addressing financial constraints and fostering innovation. Lastly, the impact of cash dividend smoothing on total factor productivity is more prominent in firms characterized by low dividend...

... use pooled OLS and hierarchical linear models and control for several firm-specific and country-specific known determinants of short-term financial management. Moreover, our results are robust to the specific measurement of trust, financial constraints, and corruption. Findings We show a positive...

... amid increasing GPR. Further analyses show that financial constraints incentivize firms to avoid taxes during rising geopolitical tensions. The authors also provide evidence on the role of firm-level and country-level governance in weakening the association between GPR and tax avoidance. Practical...

... Corporate cash demand Financial constraints E44 E52 E63 G32 Non-financial firms often maintain huge reserves of cash and other liquid assets for different purposes. Holding cash is associated with opportunity costs in terms of interest foregone on these assets and agency costs spent...

... influences these reserves is financial constraints (FC). Particularly, his results suggest that an auditee's FC serve as an intermediary in the association between audit quality and auditee's cash reserves. Ultimately, we show that high quality audits raise the market value relevance of an extra dollar...

... external financing, with debt being the first alternative prior to equity. The logic of this behavior is that information asymmetry raises the cost of external financing relative to internal financing. Corporate social responsibility Corporate cash holdings Financial constraints Environmental...

.... It is derived from a multivariate selection equation that simultaneously accounts for all-important features of the underlying company identified in the literature. The cash flow variable has then interacted with various groups of dummy variables for financial constraint, which allows the coefficient of cash...

... Publishing Limited Licensed re-use rights only United Kingdom Financial constraints Capital investment Financial flexibility Corporate payout policy Our findings contribute to the literature in the following respects. Results show a robust negative relationship between share repurchases...

... that investment–cash flow sensitivity is decreasing even during the global financial crisis (GFC) and for firms more likely to be financially constrained. The authors conclude that the usefulness of investment–cash flow sensitivity as a proxy for financial constraints is diminishing over time, even after directly...

..., this study also finds that the optimal trade credit level is sensitive to the financial constraints of SMEs. In particular, optimal level of more financially constrained firms is lower than that of less financially constrained firms. Originality/value A number of contributions that this study makes...

...Nufazil Altaf; Farooq Ahmad Purpose The purpose of this paper is to examine the relationship between working capital financing and firm performance for a sample of 437 non-financial Indian companies. In addition, this study examines the impact of financial constraints on working capital financing...

...Fahmida Laghari; Ye Chengang Purpose The purpose of this paper is to investigate the relationship between working capital management and corporate performance with financial constraints. Design/methodology/approach This study uses large panel sample of Chinese listed firms over the period 2005...

... consistency through good and bad times, affiliation categories, amid controls for idiosyncratic characteristics. The authors also examine the scantly explored effects of financial constraints on firms’ dividend decisions. Design/methodology/approach The authors use various regression models, i.e. panel...

... in India. Research limitations/implications Scarcity of such working capital management studies across emerging economies, facing several financial constraints, limits the comparison of findings. Future studies should be conducted to confirm the results. Practical implications The findings imply...

...Vicente Lima Crisóstomo; Félix Javier López Iturriaga; Eleuterio Vallelado González Purpose – The purpose of this paper is to verify the existence of financial constraints for investment in Brazil, an emerging market with growing international visibility. Design/methodology/approach – Using...