Financial constraints classifications
| The study | FC criterion | Is investment-cash flow sensitivity supported under the financing constraints Hypothesis?a |
|---|---|---|
| Xu and Xu (2019) | N/A | N/A |
| Lensink et al. (2003) | Business group affiliation | Yes |
| Poursoleiman et al. (2020) | Debt maturity | Yes |
| Kim (1999) | Firm size | Yes |
| Chan et al. (2012a) | Politically connected firm status | Yes |
| Hanazaki and Liu (2007) | Family ownership status | Yes |
| Chan et al. (2012b) | Firm size | Yes |
| Yu et al. (2020) | State-owned status, Cash ratio, Firm size, Firm age, Liquidation ratio, Tangibility, Profitability, Product market competition, Firm-specific score | Yes |
| Ghosh (2006) | Firm size | Yes |
| Gül and Taştan (2020) | Firm size | Yes |
| Vijayakumaran (2021) | State-owned status | Yes |
| Fu and Liu (2015) | N/A | N/A |
| Rousseau and Kim (2008) | Firm size, Firm age, Business group affiliation | Yes |
| Kumar and Ranjani (2018) | Ownership, Firm size, Debt capacity, Business group affiliation | Yes |
| Ameer (2014) | N/A | N/A |
| Gupta and Mahakud (2019) | Dividend payment, Firm size, Business group affiliation | Yes |
| Bhaumik et al. (2012) | Firm Size, Business group affiliation, Indebtedness | Yes |
| O'Toole and Newman (2017) | State-owned status, Firm size | Yes |
| Kandilov and Leblebicioğlu (2012) | N/A | |
| Jaramillo et al. (1996) | Firm size, Firm age | Yes |
| Aivazian and Santor (2008) | Firm Size | Yes |
| George et al. (2011) | Firm Size, Business group affiliation | Yes |
| Crnigoj and Verbic (2014) | Firm Size | Yes |
| Ganesh-Kumar et al. (2001) | Firm Size, Ownership, exporter status | Yes |
| Saeed and Vincent (2012) | Firm Size, Ownership, debt level | Yes |
| Shin and Park (1999) | Business group affiliation, Firm size, debt level | Yes |
| Lin and Bo (2012) | KZ Index, State ownership | Yes |
| Xu et al. (2013) | Politically connected firm status, Quality of corporate governance, Family firms | Yes |
| Ro et al. (2017) | Firm size | Yes |
| Ding et al. (2013) | Ownership status | Yes |
| Demir (2008) | Firm size | Yes, but there is no difference between small firms and large firms |
| Gezici et al. (2019) | Firm size, Financing constraints score | Yes |
| Pellicani et al. (2019) | Ownership (Family firm status), KZ Index, WW Index | Yes |
| Srinivasan and Thampy (2017) | Close banking relationships (especially with government banks) | Yes |
| Kuo and Hung (2012) | Family ownership status, Future growth opportunities (Low Q and High Q) | Yes |
| Tsai et al. (2014) | Firm Ownership Status, Politically Oriented Firms | Yes |
| Francis et al. (2011) | Country and firm- level corporate governance | Yes |
| Gupta et al. (2020) | Firm size, Business group affiliation, Firm’s age | Yes |
| Machokoto (2021) | WW Index, KZ Index, Debt level, Firm size, HP Index, PP&E level, Dividends | Yes |
| Ahiadorme et al. (2018) | N/A | |
| Crisostomo et al. (2014) | Dividend payment | Yes |
| Guizani and Ajmi (2020) | Business group affiliation | Yes |
| Sitthipongpanich (2017) | Family ownership status | Yes |
| Guizani (2020) | Family ownership status, Sharia-compliant firms | Yes |
| Guizani (2019) | Sharia-compliant firms | Yes |
| Altaf and Shah (2018) | Dividend payment status, Coverage status | Yes |
| Yeh and Lin (2020) | Business group affiliation, Related party transactions | Yes |
| Gugler and Peev (2010) | Firm ownership status | Yes |
| Sun and Yamori (2009) | Regional disparity | Yes |
| Hung and Tseng (2009) | Firm size, Index classification, Foreign investment ratio | Yes |
| Jiang et al. (2019) | Analyst coverage, Diversification | Yes |
| Hung and Kuo (2011) | Family ownership status, Future growth opportunities (Low Q and High Q) | Yes |
| Guariglia et al. (2012) | Irreversible investment status | Yes |
| Mansour et al. (2017) | Working capital level | Yes |
| Wan and Zhu (2011) | N/A | N/A |
| The study | FC criterion | Is investment-cash flow sensitivity supported under the financing constraints Hypothesis?a |
|---|---|---|
| N/A | N/A | |
| Business group affiliation | Yes | |
| Debt maturity | Yes | |
| Firm size | Yes | |
| Politically connected firm status | Yes | |
| Family ownership status | Yes | |
| Firm size | Yes | |
| State-owned status, Cash ratio, Firm size, Firm age, Liquidation ratio, Tangibility, Profitability, Product market competition, Firm-specific score | Yes | |
| Firm size | Yes | |
| Firm size | Yes | |
| State-owned status | Yes | |
| N/A | N/A | |
| Firm size, Firm age, Business group affiliation | Yes | |
| Ownership, Firm size, Debt capacity, Business group affiliation | Yes | |
| N/A | N/A | |
| Dividend payment, Firm size, Business group affiliation | Yes | |
| Firm Size, Business group affiliation, Indebtedness | Yes | |
| State-owned status, Firm size | Yes | |
| N/A | ||
| Firm size, Firm age | Yes | |
| Firm Size | Yes | |
| Firm Size, Business group affiliation | Yes | |
| Firm Size | Yes | |
| Firm Size, Ownership, exporter status | Yes | |
| Firm Size, Ownership, debt level | Yes | |
| Business group affiliation, Firm size, debt level | Yes | |
| KZ Index, State ownership | Yes | |
| Politically connected firm status, Quality of corporate governance, Family firms | Yes | |
| Firm size | Yes | |
| Ownership status | Yes | |
| Firm size | Yes, but there is no difference between small firms and large firms | |
| Firm size, Financing constraints score | Yes | |
| Ownership (Family firm status), KZ Index, WW Index | Yes | |
| Close banking relationships (especially with government banks) | Yes | |
| Family ownership status, Future growth opportunities (Low Q and High Q) | Yes | |
| Firm Ownership Status, Politically Oriented Firms | Yes | |
| Country and firm- level corporate governance | Yes | |
| Firm size, Business group affiliation, Firm’s age | Yes | |
| WW Index, KZ Index, Debt level, Firm size, HP Index, PP&E level, Dividends | Yes | |
| N/A | ||
| Dividend payment | Yes | |
| Business group affiliation | Yes | |
| Family ownership status | Yes | |
| Family ownership status, Sharia-compliant firms | Yes | |
| Sharia-compliant firms | Yes | |
| Dividend payment status, Coverage status | Yes | |
| Business group affiliation, Related party transactions | Yes | |
| Firm ownership status | Yes | |
| Regional disparity | Yes | |
| Firm size, Index classification, Foreign investment ratio | Yes | |
| Analyst coverage, Diversification | Yes | |
| Family ownership status, Future growth opportunities (Low Q and High Q) | Yes | |
| Irreversible investment status | Yes | |
| Working capital level | Yes | |
| N/A | N/A |
Note(s): aIf investment-cash flow sensitivity is found to be valid for at least one financing constraints classification, it is reported as “Yes”. WW: Whited-Wu Index, KZ: Kaplan and Zingales Index, HP: Hadlock-Pierce Index, PP&E: Property, Plant and Equipment, Q: Tobin’s Q
Source(s): The author
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