Cash Holding Adjustment Speed: The Role of Managerial Ability and Moderating Role of Political Connections in Tehran Stock Exchange
Subject Areas : Financial AccountingMohammad Gholamrezapoor 1 , Pouria Kazemi 2 , Narjes Amirniya 3
1 - Auditor of Behdad Hesab Aria Institute, Tehran, Iran
2 - Department of Accounting, Faculty of Economics and Administrative Sciences, University of Mazandaran, Iran
3 - Department of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran
Keywords:
Abstract :
[1] Aflatooni, A., mansouri, K., Opaque Information, Deviation from Target Leverage and Speed of Adjustment, Advances in Mathematical Finance and Applications, 2019, 4(2), P. 15-29.Doi:10.22034/amfa.2019.585872.1191
[2] Agarwal, V., Taffler, R., Brown, M., Is Management Quality Value Relevant? Journal of Business, Finance and Accounting, 2011, 38, P. 1184–1208. Doi: 10.1111/j.1468-5957.2011.02267.x
[3] Aghaee, M., ahmadi gvrajy, J., Examine the Sensitivity of Investment to Internal Financing and Borrowings, Political and Nonpolitical Companies in Tehran Stock Exchange, Journal of Financial Accounting Knowledge, 2015, 2(3), P. 1-22. (In Persian).
[4] Aghaei, M., Hasanzadeh, B., Accounting Comparability and Its Effect on Investment Efficiency, Journal of Accounting knowledge, 2018, 9(2), P. 7-34. (In Persian). Doi: 0.22103/jak.2018.11156.2531
[5] Al-Najjar, B., The Financial Determinants of Corporate Cash Holdings: Evidence from Some Emerging Markets, International Business Review, 2013, 22(1), P. 77–88. Doi: 10.1016/j.ibusrev.2012.02.004
[6] Asadi, G., Bagdar, B., The impact on the value of the optimal level of cash holding company listed on the Tehran Stock Exchange, Journal of Audit Science, 2014, 15(61), P. 27-50. (In Persian).
[7] Badavar Nahandi, Y., Heshmat, N., The Impact of Corporate Governance’s Mechanisms on the Relationship of Managerial Ability and Created Shareholders Value, Management Accounting, 2018, 11(38), P. 93-108. (In Persian).
[8] Baik, B., Farber, D., Lee, S., CEO ability and management earnings forecasts, Contemporary Accounting Research, 2011, 28, P. 1645–1668. Doi: 10.1111/j.1911-3846.2011. 01091.x
[9] Bamber, L., Jiang, J., Wang, I., What’s my style? The influence of top managers on voluntary corporate financial disclosure, Accounting Review, 2010, 85, P. 1131–1162. Doi: 10.2308/accr.2010.85.4.1131
[10] Bates, T. W., Kahle, K. M., Stulz, R. M., Why do U.S. firms hold so much more cash than they used to? Journal of Finance, 2009, 64, P. 1985–2021. Doi: 10.1111/j.15406261.2009.01492.x
[11] Bonsall IV, S. B., Holzman, E. R., Miller, B. P., Managerial ability and credit risk assessment, Management Science, 2017, 63, P. 1425–1449. Doi: 10.1287/mnsc.2015.2403
[12] Bozorgasl, M., Salehzadeh, B., Managerial Ability and Accruals Quality, Journal of Accounting knowledge, 2014, 5(17), P. 119-139. Doi: 10.22103/jak.2014.727
[13] Bulu, G., Babajani, j., Mohseni Maleki, B., Relationship between non- optimal cash holding and Future Performance of Companies in Tehran Stock Exchange (TSE), Journal of Accounting knowdlege, 3(11), P. 7-29. Doi: 10.22103/jak.2013.502
[14] Caprio, L., Faccio, M., McConnell, J. J., Sheltering Corporate Assets from Political Extraction, Journal of Law and Economic Organization, 2013, 29(2), P. 332–354. Doi: 10.1093/jleo/ewr018
[15] Chalaki, P., Mansourfar, G., Karami, A., Review the effect of Management Ability on the Financial Distress, with an emphasis on Financial Flexibility in Tehran Stock Exchange listed companies, Journal of Financial Accounting Knowledge, 2018, 5(1), P.153-180. Doi: 10.30479/jfak.2018.1403
[16] Chemmanur, T. J., Paeglis, I., Management quality, certification, and initial public offerings, Journal of Financial Economics, 2005, 76, P. 331–368. Doi: 10.1016/j.jfineco.2004.10.001
[17] Cho, H., Choi, S., Kim, M. O., Cash Holdings Adjustment Speed and Managerial Ability, Asia‐Pacific Journal of Financial Studies, 2018, 47(5), P. 695-719. Doi: 10.1111/ajfs.12235
[18] Dastgir, M., Yosefi, A., Imani, K., Speed of Adjustment of Cash and Effective Corporate Factors on It, Journal of Accounting Research, 2013, 3(3), P.19-33. Doi: 10.22051/ijar.2014.470
[19] De Franco, G., Hope, O. K., Lu, H, Managerial ability and bank-loan pricing, Journal of Business, Finance and Accounting, 2017, 44, P. 1315–1337. Doi: 10.1111/jbfa.12267
[20] Demerjian, P., Lev, B., Lewis, M., McVay, S, Managerial ability and earnings quality, Accounting Review, 2013, 88, P. 463–498. Doi: 10.2308/accr-50318
[21] Demerjian, P., Lev, B., MacVay, S., Quantifying managerial ability: Anew measure and validity test, Management Science, 2012, 58(7), P. 1229-1248. Doi: 10.2139/ssrn.1266974
[22] Dittmar, A., Duchin, R., The dynamics of cash, Ross School of Business Paper, 2011, (1138). Doi: 10.2139/ssrn.1569529
[23] Faccio, M., Differences between politically connected and nonconnected firms: A cross-country analysis, Financial Management, 2010, 39(3), 905–928. Doi:10.1111/j.1755-053X.2010.01099.x
[24] Faccio, M., Politically connected firms, American Economic Review, 2006, 96(1), P. 369–386. Doi: 10.1257/000282806776157704
[25] Fakhari, H., Asadzadeh, A., The Effect of Leverage and Free Cash Flow on the Cash Holding, Financial Management Strategy, 2017, 5(4), P. 1-23. Doi: 10.22051/jfm.2018.15769.1402
[26] Fakhari, H., Taghavi, R., Bashiri Jouibari, M., The Efect of Competition in the ProductMarket on Market Valuation from Company Cash Holdings, Financial Accounting Knowledge, 2015, 2(1), P. 47- 65. (In Persian).
[27] Goodman, T. H., Neamtiu, M., Shroff, N, White, H. D., Management forecast quality and capital investment decisions, Accounting Review, 2013, 89, P. 331–365. Doi: 10.2308/accr-50575
[28] Ghorbani, S., Adili, M., Firm Value, Cash Holdings and Information Asymmetry, Journal of Accounting knowledge, 2019, 3(8), P. 131-149. Doi: 10.22103/jak.2012.7
[29] Hasan, M.M., Managerial ability, annual report readability and disclosure tone, 2017. Doi: 10.125454458 ssrn.com/abstract=2957135
[30] Jensen, M. C., Agency costs of free cash flow, corporate finance, and takeovers, American Economic Review, 1986, 76, P. 323–329. Doi: 10.2139/ssrn.99580
[31] Jiang, Z., Lie, E., Cash holding adjustments and managerial entrenchment, Journal of Corporate Finance, 2016, 36, P. 190–205. Doi: 10.1016/j.jcorpfin.2015.12.008
[32] Khajavi, S., Ghadirian-Arani, M., The Role of Managerial Ability in Financial Distress Prediction, Journal of Financial Accounting Research, 2018, 9(4), P. 83-102. Doi: 10.22108/far.2018.107709.1172
[33] Kusnadi, Y., Wei, K. C. J., The Effects of Political Connections on the Level and Value of Cash Holdings: International Evidence, Working paper, Singapore Management University, 2012. Doi: link.library.smu. edu.sg Z/soa_research/1133
[34] Lin, T. J., Chang, H. Y., Yu, H. F., Kao, C. P., The Impact of Political Connections and Business Groups on Cash Holdings: Evidence from Chinese Listed Firms, Global Finance Journal, 2019, 40, P. 65-73. Doi: 10.1016/j.gfj.2018.10.001
[35] Mansouri, F., Mohammadi, M., Investigating the Effect of Management Entrenchment on Speed of Cash Holding Adjustment in Companies Listed in Tehran Stock Exchange, Advances in Mathematical Finance and Applications, 2(4), P. 81-92. Doi: 10.22034/amfa.2017.536268
[36] Mashayekhi, B., zimi, A., Influence of Manager's Abilities On the Relation Between Real Earning Management and Future Firm Performance, Accounting and Auditing Review, 2016, 23(2), P. 253-267. Doi: 10.22059/acctgrev.2016.58471
[37] Myers, S. C., Determinants of corporate borrowing, Journal of FInancial Economics, 1977, 5, P. 147–175. Doi: 10.1016/0304-405X(77)90015-0
[38] Myers, S. C., Majluf, N. S., Corporate financing and investment decisions when firms have information that investors do not have, Journal of Financial Economics, 1984, 13, P. 187–221. Doi: 10.1016/0304-405X(84)90023-0
[39] Opler, T., Pinkowitz, L., Stulz, R.,Williamson, R., The determinants and implications of corporate cash holdings, Journal of Financial Economics, 1999, 52, P. 3–46. Doi: 10.22051/jfm.2018.15769.1402
[40] Rasaiian, A., Rahimi, F., Hanjari, S., The Effect of Internal Mechanisms of Corporate Governance on the Level of Cash holdings in Tehran Stock Exchange, Journal of Financial Accounting Research, 2010, 2(4), P. 125-144. (In Persian).
[41] Rezaei Pitenoei, Y., Gholamrezapoor, M., Free Cash Flow, Institutional Ownership and Long-Term Performance, Advances in Mathematical Finance and Applications, 2019, 4(2), P. 31-42. Doi: 10.22034/amfa.2019.1865670.1207
[42] Rezaei, F., Weysihesar, S. The Effect of Political Connections with the Government on the Relationship Between Ownership Concentration with Quality of Financial Reporting and the Cost of Equity Capital, Accounting and Auditing Review, 2014, 21(4), P. 449-470. (In Persian). Doi: 10.22059/acctgrev.2014.52903
[43] Rezazadeh, J., Mohammadi, A., Managerial Ability, Political Connections and Fraudulent Financial Reporting, Accounting and Auditing Review, 2019, 26(2), P. 217-238. (In Perian). Doi: 10.22059/acctgrev.2019.263263.1007956
[44] Safari Gerayli, M., Rezaei pitenoei, Y, Managerial Ability and Financial Reporting Readability: A Test of Signaling Theory, Journal of Accounting knowledge, 2018, 9(2), P. 191-218. (In Persian). Doi: 10.22103/jak.2018.11261.2548