Governança corporativa e sensibilidade investimento-fluxo de caixa no
                        Brasil

This study aimed to investigate the investment-cash flow sensitivity for Brazilian companies with different degrees of financial constraint according to the quality level of their corporate governance practices. An investment model was estimated through GMM for a panel data of 248 Brazilian publicly traded companies, which were a priori classified in two groups of financial constraint degrees (high and low) according to the Corporate Governance Practices Index (IPGC). The results showed that the quality of corporate governance influences the investment-cash flow sensitivity, and this sensitivity is negative and significant only for firms with poor governance, classified with high financial constraint. Furthermore, it can be concluded that IPGC proved to be an interesting variable for a priori classification of companies and an important determinant of the investment-cash flow sensitivity to identify potentially financially constrained firms.

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Investment Cash Flow Sensitivity as a Measure of Financing Constraints: Evidence from Selected African Countries

Journal of Economics and Behavioral Studies ◽

10.22610/jebs.v6i8.525 ◽

2014 ◽

Vol 6 (8) ◽

pp. 647-657

Author(s):

Letenah Ejigu Wale

Keyword(s):

Cash Flow ◽

Financial Constraints ◽

A Priori ◽

Financing Constraints ◽

Financial Constraint ◽

African Countries ◽

Multidimensional Construct ◽

Flow Sensitivity ◽

Conflicting Evidence ◽

Cash Flow Sensitivity

The use of investment cash flow sensitivity as a measure of financing constraints is an unresolved research agenda. This paper endeavors to explain the conflicting evidence by using proxies for both internal financial constraint and external financial constraint measures. Data is taken from selected six African countries, a region where no previous studies are conducted. It is observed that the investment curve is Ushaped when firms are classified on the basis of internal financial constraint measure (i.e. cash flow). Using external financial constraint proxies (age, size and payout) it is found that all category of firms show positive and significant investment cash flow sensitivity. This suggests that the sampled African firms are externally financial constrained. It is concluded that the way firms are a priori classified as internal vs. external financial constrained matters. This raises the issue of whether the term financial constraints itself is a multidimensional construct.

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THE EFFECT OF FINANCIAL CONSTRAINT MODERATION IN CASH FLOW SENSITIVITY TO EXTERNAL FINANCING OF MANUFACTURING COMPANIES

Manajemen Bisnis ◽

10.22219/jmb.v10i1.11836 ◽

2020 ◽

Vol 10 (1) ◽

pp. 65

Author(s):

Abu Hasan Ahmad ◽

Maria Adventia Mentari Mayang Cardicna

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Order Theory ◽

Debt Financing ◽

Financial Constraint ◽

External Financing ◽

Manufacturing Companies ◽

Short Term ◽

Flow Sensitivity ◽

Cash Flow Sensitivity

This study aims to test the pecking order theory by looking at the level of cash flow sensitivity as a source of internal financing for all types of external financing (debt and equity). This testing also considering the financial constraint variable as moderation. The data used are the financial statements of manufacturing companies listed on the Indonesia Stock Exchange in 2014 - 2018. The dependent variable is all types of external financing (debt and equity). Debt financing is divided into two forms, short-term debt financing and long-term debt financing. While the independent variable is cash flow. The results obtained is that cash flow does not substitute all types of external financing, and the highest cash flow sensitivity occurs in short-term debt financing. The next result is that financial constraint strengthen the sensitivity of cash flow to debt and equity financing

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Investment cash flow sensitivity and financial constraint: a cluster analysis approach

Applied Economics ◽

10.1080/00036846.2015.1030568 ◽

2015 ◽

Vol 47 (41) ◽

pp. 4442-4457 ◽

Cited By ~ 4

Author(s):

Maurizio La Rocca ◽

Raffaele Staglianò ◽

Tiziana La Rocca ◽

Alfio Cariola

Keyword(s):

Cluster Analysis ◽

Cash Flow ◽

Analysis Approach ◽

Financial Constraint ◽

Flow Sensitivity ◽

Cash Flow Sensitivity

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Do financial restricted companies use the cash flow for investment or for cash holdings?

Enfoque Reflexão Contábil ◽

10.4025/enfoque.v39i3.47666 ◽

2020 ◽

Vol 39 (3) ◽

pp. 69-84

Author(s):

Alberto Granzotto ◽

Fernanda Alves Lamberti ◽

Igor Bernardi Sonza

Keyword(s):

Cash Flow ◽

Structural Breaks ◽

Cash Holdings ◽

Z Score ◽

Threshold Method ◽

Publicly Traded Companies ◽

Flow Sensitivity ◽

Cash Flow Sensitivity ◽

Representative Model ◽

The One

The present paper aims to verify whether the most financially restricted companies use their cash flow for investment or for cash holdings. To this end, the cash flow sensitivity of investment as well as the cash flow sensitivity of cash for Brazilian publicly traded companies through the Threshold method is tested, given its classification in restricted and unrestricted companies. In this context, the models of Fazzari, Hubbard and Petersen (1984) and Almeida, Campello and Weisbach (2004) were applied, using as structural breaks the Dividends Paid, Total Assets, Z-score and KZ-index. The result of the analysis was not clear in relation to which behavior is predominant in Brazilian companies. Using the Total Asset as a Threshold, the model that was most representative was the one referring to investments in capital goods. But, considering the Z-score as a Threshold, the most representative model indicates that companies use more Cash Flow results for cash holdings. Dividends and KZ-index were not significant in the analysis.

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The Time-varying Cash Flow Sensitivity of Cash

10.51240/jibe.2014.2.1 ◽

2014 ◽

Vol 15 (2) ◽

pp. 1-34

Author(s):

NyoNyo Aung Kyaw ◽

Sijing Zong

Keyword(s):

Cash Flow ◽

Cash Flows ◽

Time Varying ◽

Financial Constraint ◽

Manufacturing Companies ◽

Macroeconomic Conditions ◽

Flow Sensitivity ◽

Time Period ◽

Cash Flow Sensitivity ◽

Using Data

By using data of US manufacturing companies, we revisit the cash flow sensitivity to cash in two sub-samples of 1993-2000 and 2000-2011 to investigate the time-varying features of the cash flow sensitivity of cash. Our results show a weakening coefficient of US manufacturing firms from 1990s to 2000s. The sensitivity in the later time period is only a half of its original scale. Financially unconstrained firms seem to converge with the constrained firms in the later period, leading to the conclusion that macroeconomic conditions impact more on the cash flow sensitivity of cash than the external financial constraint does. Further, our research identifies that the overall decreasing sensitivity is driven by firms with negative cash flows.

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