The impact of managerial attributes on cash holding and investment efficiency and the mediator role of cash holding

Arianpoor, Arash; Mehrfard, Niloufar

doi:10.1108/jiabr-02-2022-0046

Cited by 7 publications

(5 citation statements)

References 45 publications

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“…Tobin's Q can be interpreted as a score greater than one indicating that the rm is creating value, and a score less than one indicating that the rm is destroying wealth. The mean value variable (Tobin's Q) in this study is 2.521, indicating that the companies produce value, and this value corresponds to the 2.787 stated by Arianpoor and Mehrfard (2022).…”

Section: Statisticsmentioning

confidence: 57%

The Effect of Tax Avoidance on Investment Efficiency: The Mediating Role of Cash Holding—Evidence from Egypt

Elfeky,

Elbrashy,

Issa

2024

Preprint

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Purpose– This study aims to investigate the influence of tax avoidance on investment efficiency, while also examining the mediating role of cash holding in this relationship. Design/methodology/approach– Utilizing a sample comprising 321 firm-year observations from Egypt, we employ Ordinary Least Squares (OLS) regression to examine both the direct and indirect associations between tax avoidance and investment efficiency. Findings– The results revealed a significant positive effect of tax avoidance on cash holding and excess cash. Moreover, there is contrasting findings on the effect of cash holding on investment efficiency. Additionally, the study revealed a significant negative effect of tax avoidance on investment efficiency, with a positive effect on overinvestment and a negative effect on underinvestment. Furthermore, cash holding played a mediating role in the relationship between tax avoidance and investment efficiency. Practical implications– The insights gleaned from this study hold significant implications for various stakeholders in Egypt, including tax authorities, investors, and listed firms. Given the current economic instability in Egypt, where many firms resort to cash hoarding to mitigate potential future financial constraints, these findings offer valuable guidance for regulatory agencies, investors, and firms navigating uncertain economic conditions. Originality– This paper explores how tax avoidance influences cash holdings and investment efficiency in Egyptian firms, filling a gap in existing literature. It introduces a novel perspective by examining the mediating role of cash holdings between tax avoidance strategies and investment outcomes. By focusing on the specific context of Egyptian firms, it offers unique insights into the complex interplay between tax-related decisions, financial management, and firm performance. Overall, the study provides valuable contributions to understanding the dynamics of tax planning and its implications for corporate finance in emerging market economies.

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Section: Statisticsmentioning

confidence: 57%

The Effect of Tax Avoidance on Investment Efficiency: The Mediating Role of Cash Holding—Evidence from Egypt

Elfeky,

Elbrashy,

Issa

2024

Preprint

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“…From 2021 to 2023, academic research has delved into various key concepts related to cash holdings, including investment efficiency Arianpoor and Mehrfard (2022), liquidity management Almeida (2021), corporate governance Jiang et al (2023), financing constraints (Mehrabanpour, 2020), policy uncertainty Ghoul et al (2023); Javadi et al (2021), trade credit Zhang (2020) capital structure Sun and Xia (2022) and financial reporting as Figure 11 provides a visual representation of the key concepts based on the authors' keywords. From this flow, the act of researchers in favour of a multidisciplinary approach is to be encouraged and investment efficiency become prominent in the field.…”

Section: Accounting and Finance 31mentioning

confidence: 99%

Mapping the Evolution Trends in Cash Holdings Research: Current Status and Future Directions

Abd Rahim,

Abdul Kader Malim,

Azizan

et al. 2024

IJARAFMS

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The purpose of this study is to review and assess research metadata on cash holdings from the past decade leading up to the COVID-19 pandemic. The analysis aims to achieve several objectives, including first, determining the state of cash holdings research; second, identifying the key trends and developments that have emerged over time; third, investigating the major contributors and their impact; fourth, uncovering essential keywords and concepts that enable a better understanding of cash holdings, and fifth, pinpointing areas that require further exploration to fill the knowledge gap. Using the Biblioshiny R package, the researchers surveyed global publication metadata on 1637 cash holdings articles extracted from the Web of Science (WoS) database from 1975 to 2022. The findings of this study reveal significant elements in the patterns or trends, including journals, articles, authors, countries, institutions, and themes of the topic to be explored.

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“…In finance and accounting research, when data on several companies are collected for a specific period of time, we generally deal with longitudinal data (pooled or panel), which makes it necessary to first determine the type of model assessment (Salehi et al 2020;Moradi et al 2020;Tarighi et al 2022;Arianpoor and Mehrfard 2023). According to the principles of econometrics, the first step should be to perform the F-Limer (Chow) test to determine precisely whether the research model should be estimated using ordinary least squares (OLS) or panel data.…”

Section: F-limer and Hausman Testsmentioning

confidence: 99%

The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty

Tarighi,

Zimon,

Sheikh

et al. 2024

Risks

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The present study aims to investigate the impact of the COVID-19 crisis and firm risk on working capital management policies among manufacturing firms listed on the Tehran Stock Exchange (TSE). The study sample consists of 1200 observations and 200 companies listed on the TSE over a six-year period from 2016 to 2021; furthermore, the statistical method used to test the hypotheses is ordinary least squares (OLS). The results show that the COVID-19 pandemic has led managers to increase current assets to total assets ratio (CATAR), current ratio (CR), quick ratio (QR), net working capital (NWC), cash to current assets (CTCA) ratio, while it has caused a decrease in operational cycle (OC), days account receivables (DAR), and current liabilities to total assets ratio (CLTAR). Furthermore, we find that the higher the company’s risk, the more managers are motivated to embrace the working capital investment policy, net working capital, cash to current assets ratio, and cash conversion efficiency (CCE). In general, our findings indicate that during times of crisis, Iranian companies tend to adopt conservative working capital policies to ensure sufficient liquidity to respond appropriately to unforeseen events. In this study, the theory of liquidity preference aligns with the observed behavior of firms in response to the COVID-19 crisis and firm risk, where the emphasis on liquidity and short-term financial stability becomes paramount.

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The impact of managerial attributes on cash holding and investment efficiency and the mediator role of cash holding

Cited by 7 publications

References 45 publications

The Effect of Tax Avoidance on Investment Efficiency: The Mediating Role of Cash Holding—Evidence from Egypt

The Effect of Tax Avoidance on Investment Efficiency: The Mediating Role of Cash Holding—Evidence from Egypt

Mapping the Evolution Trends in Cash Holdings Research: Current Status and Future Directions

The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty

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