Working capital and R&amp;D smoothing: evidence from the Tel Aviv stock exchange

Alkhataybeh, Ahmad

doi:10.1080/15140326.2021.1877599

Cited by 9 publications

(3 citation statements)

References 39 publications

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“…In other words, lagged cash levels positively influence current cash levels. The negative coefficient of the squared lagged cash level and the positive coefficient of the lagged cash level are consistent with the Euler equation and with previous research findings; for example, those of Ogundipe et al (2012) and Alkhataybeh (2021).…”

Section: Resultssupporting

confidence: 91%

Corporate cash holdings and disclosure violations: an empirical investigation of Jordanian listed companies

Alsmadi

Alkhataybeh

Shakhatreh

2022

JIABR

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Purpose This study aims to examine the impact of low-quality financial statements; that is, disclosure violations reported by the Securities Exchange Commission related to the level of cash holdings (CH) of firms listed on the Amman Stock Exchange (ASE). Design/methodology/approach Using panel data from 107 ASE-listed companies from 2009 to 2018, the study uses generalized method of moment estimation to examine the research hypothesis. This study hypothesize that disclosure violations can affect the level of CH and control for several variables that affect this level. Findings The results show that disclosure violations significantly affect the level of CH and that cash flow, capital expenditure and debt issues have a significantly positive impact on corporate CH. On the other hand, the market to book ratio and sales growth were found to be insignificant. Research limitations/implications The limitations of the research include the fact that information on research and development and equity issues were not available, so were not included in the examination. Practical implications It is recommended that managers enhance the quality of disclosures since this allows them to hold lower levels of cash and exploit more investment opportunities. Policymakers are recommended to supervise firm disclosures closely and create ratings for disclosure quality. Originality/value To the best of the author’s knowledge, this is the first empirical research on the association between proven low-quality disclosures and the level of corporate CH among Jordanian listed companies.

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Section: Resultssupporting

confidence: 91%

Corporate cash holdings and disclosure violations: an empirical investigation of Jordanian listed companies

Alsmadi

Alkhataybeh

Shakhatreh

2022

JIABR

Self Cite

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“…To solve the endogeneity problem, it is crucial to utilize instruments that are not correlated with the residuals, but with the explanatory factors. However, as Blundell and Bond [57] and Alkhataybeh [50] point out, in the presence of weak instruments, estimates of the difference-GMM are not totally reliable because estimations tend to be downward biased (According to Alkhataybeh [50], inconsistent difference-GMM estimates can be discovered if the coefficient of the lagged dependent variable falls between OLS (upward-biased) and fixed-effect (downward-biased) estimates, with being closer to the second).…”

Section: Methodsmentioning

confidence: 99%

Government Ownership and Corporate Cash Holdings: Empirical Evidence from the Amman Stock Exchange

et al. 2022

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While the effect of ownership structure on the level of cash holdings has been widely examined, that of government ownership has been understudied. Using a generalized method of moments (GMM) estimation on the panel data of 107 Jordanian firms listed on the Amman Stock Exchange, this research adds to the limited literature on the relationship between government ownership and the level of corporate cash holdings. Consistent with agency theory, the findings reveal that firms with government ownership hold higher levels of cash and that such ownership creates agency problems. Other types of ownership, namely individual, foreign, and block holders, were found to be insignificant. The results provide an important implication for policy makers in Jordan: in order to reduce agency problems associated with government ownership, the government should revise its ownership policy and ensure it specifies clear purposes and expectations of business ownership and how it intends to exercise its rights as owner.

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“…As there are long R&D cycles, high risks, and high capital requirements for corporate innovation activities, they cannot be achieved solely by internal financing, and external financing remains an important channel to support corporate innovation [68][69][70]. However, there is information asymmetry between external investors and internal managers, and it is difficult for external investors who are at an informational disadvantage to judge the innovation value of the firm rationally.…”

Section: The Mediation Mechanisms Of Financing Constraintsmentioning

confidence: 99%

Too Much of a Good Thing? The Impact of Serial M&A on Innovation Performance

2023

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Based on the sample of serial M&A of Chinese listed companies from 2010–2019, this paper intends to investigate the impact of serial M&A on innovation performance and the impact of financing constraints and digital inclusive finance (DIF). The empirical results show that an inverted U-shaped relationship exists between serial M&A and innovation performance that first goes up and then goes down. The results of mechanism analysis show that financing constraints play a mediating role in the inverted U-shaped relationship between serial M&A and innovation performance, while DIF plays a moderating role in the mediating effect of serial M&A on innovation performance through the financing constraint. The heterogeneity analysis finds that the inverted U-shaped relationship between serial M&A and innovation performance is more significant in firms with non-state ownership property, a higher business environment index, and medium and large-scale firm size. The research results not only help to promote the in-depth analysis of the impact of serial M&A on innovation performance, but also help to provide targeted theoretical reference and practical guidance for corporate management decision making.

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Working capital and R&D smoothing: evidence from the Tel Aviv stock exchange

Cited by 9 publications

References 39 publications

Corporate cash holdings and disclosure violations: an empirical investigation of Jordanian listed companies

Corporate cash holdings and disclosure violations: an empirical investigation of Jordanian listed companies

Government Ownership and Corporate Cash Holdings: Empirical Evidence from the Amman Stock Exchange

Too Much of a Good Thing? The Impact of Serial M&A on Innovation Performance

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