How optimal cash changed by the global financial crisis? A multi-country analysis
Küçük Resim Yok
Tarih
2020
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Univ Oviedo
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
This article investigates the impact of the global financial crisis 2007-2009 (GFC) as well as financial constraints and governance on optimal cash decisions. Using 14,885 sample firms from eleven countries, empirical results show that constrained firms have a faster cash adjustment than unconstrained firms as confirmed by precautionary motive. Contrary to agency motive, firms in weak-governed countries have a slower cash adjustment than those in well- governed countries before the GFC. However, this picture changes after the GFC. Specifically, they increase their cash adjustments, whereas those in well-governed countries decrease their cash adjustments as supported by agency motive. Overall, optimal cash policy differs following the GFC across financial constraints and governance.
Açıklama
Anahtar Kelimeler
adjustment speed, agency motive, financial constraints, global financial crisis, governance, precautionary motive
Kaynak
Economics and Business Letters
WoS Q Değeri
N/A
Scopus Q Değeri
Q2
Cilt
9
Sayı
2
