Search results for " flow state"
showing 6 items of 6 documents
Corporate Investment, Debt and Liquidity Choices in the Light of Financial Constraints and Hedging Needs
2015
We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates between 1980 and 2014. We partition the sample according to the firms' financial constraints and their needs to hedge against future shortfalls in operating income. In contrast to earlier work, our joint estimation approach shows that cash flows affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q), however, play a larger role for constrained firms with the effects being strongest…
Financial constraints and cash–cash flow sensitivity
2014
This article explores the cash–cash flow relationship by comparing financially constrained and financially unconstrained companies. Unlike previous research, we test the sensitivity of cash to cash flow by considering unlisted firms as constrained and listed firms as unconstrained. Our empirical evidence is based on findings from Spanish firms and is consistent with the core rationale that unlisted firms face more difficulties than their listed counterparts when looking for funding from external markets. As a result, unlisted firms tend to hoard significant amounts of cash out of the generated cash flow, while listed firms do not. Our findings are robust to a number of additional empirical …
A Model for Estimating Cash Flows in Firms Backed by Venture Capital
2013
Venture Capital only backs firms for a short period of time. When the time to exit arrives, the firm must inevitably be valued in order to obtain a basis for negotiating the exit price. Discounted cash flow is precisely one of the valuation methods that are used most by Small and Medium-sized Enterprises (SMEs).
Sensitivity of external resources to cash flow under financial constraints
2014
Abstract This paper explores the external financing–cash flow relationship in capital structure theory by comparing unlisted (financially constrained) and listed (financially unconstrained) companies. We postulate that investment is determined endogenously in the case of unlisted firms, as they are strongly dependent on internally generated funds (cash flow). Consequently, unlisted firms invest their cash flow in profitable projects, using any residual cash flow to increase their holdings of safe assets. In turn, listed companies determine their investment exogenously and may reduce leverage if they raise an excess of cash flow. As a result, listed companies would react more negatively to s…
Make Fitness Fun: Could Novelty Be the Key Determinant for Physical Activity Adherence?
2020
The benefits of physical activity (PA) are well known and are extensively delineated in the scientific literature. Regular participation in PA, or exercise as its subset (structured, preplanned form of PA), is positively associated with numerous physical and psychological health benefits across all population subgroups (i.e., different age groups, gender, ethnicity, and socioeconomic status) (Paterson and Warburton, 2010; Warburton and Bredin, 2017). The current PA guidelines for adults, proposed by the American College for Sports Medicine and American Heart Association (ACSM/AHA), recommend the accumulation of at least 150 min of moderate intensity aerobic PA per week (Nelson et al., 2007)…
The value relevance of earnings, operating cash flow and accruals: A study on UK data
2003
The purpose of the work reported in this paper is to establish the value relevance of earnings, operating cash flows and accruals for UK companies. Innovations in this paper are threefold: the use ...