Value of financial flexibility and quantitative aspects of net working capital: Evidence from Tehran Stock Exchange

[1] N. Aktas, E. Croci and D. Petmezas, Is working capital management value enhancing? Evidence from firm performance and investments, J. Corporate Finance 30 (2015), 98–113.

[2] Z. An, D. Li and J. Yu, Firm crash risk, information environment, and speed of leverage adjustment, J. Corporate Finance 31 (2015), 132–151.

[3] J. Ang and A. Smedema, Financial flexibility: Do firms prepare for recession?, J. Corporate Finance 17 (2011), 774–787.

[4] S. Banos-Caballero, P.J. Garcia-Teruel and P. Martinez-Solano, The speed of adjustment in working capital requirement, Eur. J. Finance 19 (2013), 978–992.

[5] T.W. Bates, K.M. Kahle and R.M. Stulz, Why do U.S. firms hold so much more cash than they used to?, J. Finance 64 (2009), 1985–2021.

[6] C.F. Beauchamp, W.G. Hardin, M.D. Hill and C.M. Lawrey, Frictions and the contribution of inventory to shareholder wealth, J. Financ. Res. 37 (2014), 385–404.

[7] F. Belo and X. Lin, The inventory growth spread, Rev. Financ. Stud. 25 (2012), 278–313.

[8] M. Bianco and A. Gamba, Inventory and corporate risk management, Rev. Corporate Finance Stud. 8 (2015), no. 1, 97–145.

[9] B.A. Bliss, Y. Cheng and D.J. Denis, Corporate payout, cash retention, and the supply of credit: Evidence from the 2008–2009 credit crisis, J. Financ. Econ. 115 (2015), 521–540.

[10] E.R. Brisker and W. Wang, CEO’s inside debt and dynamics of capital structure, Financ. Manag. 46 (2016), no. 3, 655–685.

[11] D. Brounen, A. de Jong and K. Koedijk, Capital structure policies in Europe: Survey evidence, J. Bank. Finance 30 (2006), 1409–1442.

[12] M. Campello, J.R. Graham and C.R. Harvey, The real effects of financial constraints: Evidence from a financial crisis, J. Financ. Econ. 97 (2010), 470–487.

[13] J.R. De Almeida and W. Eid Jr, Access to finance, working capital management and company value: Evidences from Brazilian companies listed on BM&FBOVESPA, J. Bus. Res. 67 (2014), 924–934.

[14] M. Dong, M. Dutordoir and C. Veld, Why do firms really issue convertible bonds? Evidence from the field, Citeseer, Working Paper, (2013), 1–40.

[15] R. Ek and S. Guerin, Is there a right level of working capital?, J. Corporate Treasury Manag. 4 (2011), no. 2.

[16] S. Fathi, A. Gugardchian and A. Behzadi, Investigating the impact of financial flexibility value on companies’ financial policies and the cost of equity capital using the Gamba and Trintis model, Financ. Manag. Persp. 21 (2017), 29–50.

[17] M. Faulkender, M.J. Flannery, K.W. Hankins and J.M. Smith, Cash flows and leverage adjustments, J. Financ. Econ. 103 (2012), 632–646.

[18] M. Faulkender and R. Wang, Corporate financial policy and the value of cash, J. Finance 61 (2006), 1957–1990.

[19] S. Fazzari, R.G. Hubbard and B.C. Petersen, Financing constraints and corporate investment, National Bureau of Economic Research Cambridge, Mass. USA, 1987.

[20] A. Ferrando. M.-T. Marchica and R. Mura, Financial flexibility and investment ability across the Euro area and the UK, Eur. Financ. Manag. 23 (2017), no. 1, 87–126.

[21] G. Filbeck, X. Zhao and R. Knoll, An analysis of working capital efficiency and shareholder return, Rev. Quant. Finance Account. 48 (2016), no. 1, 265–288.

[22] P.T. Fliers, What is the relation between financial flexibility and dividend smoothing?, J. Int. Money Finance 92 (2018), 98–99.

[23] C.F. Foley, J. Hartzell, S. Titman and G.J. Twite, Why do firms hold so much cash? A tax-based explanation, J. Financ. Econ. 86 (2007), 579–607.

[24] A. Gamba and A. Triantis, The value of financial flexibility, J. Financ. 63 (2008), 2263–2296.

[25] A. Gamba and A.J. Triantis, Corporate risk management: Integrating liquidity, hedging, and operating policies, Manag. Sci. 60 (2013), 246–264.

[26] J.R. Graham and C.R. Harvey, The theory and practice of corporate finance: Evidence from the field, J. Financ. Econ. 60 (2001), 187–243.

[27] J. Harford, Corporate cash reserves and acquisitions, J. Finance 54 (1999), 1969–1997.

[28] M.D. Hill, G.W. Kelly and G.B. Lockhart, Shareholder returns from supplying trade credit, Financ. Manag. 41 (2012), 255–280.

[29] M.D. Hill, G.W. Kelly and G.B. Lockhart, Downstream value of upstream finance, Financ. Rev. 48 (2013), 697–723.

[30] M. Horr, The effect of financial flexibility on the level of changes in cash assets and the level of financial leverage of companies listed on the Tehran Stock Exchange, New Res. Manag. Account. 2 (2015), no. 4, 14–26.

[31] Z. Jiang and E. Lie, Cash holding adjustments and managerial entrenchment, J. Corporate Finance 36 (2016), 190–205.

[32] C.S. Jones and S. Tuzel, Inventory investment and the cost of capital, J. Financ. Econ. 107 (2013), 557–579.

[33] M. Kefayat and M. Basirat, The importance of working capital management in determining the profitability of companies, case study: Automotive and chemical industries of Tehran Stock Exchange, Account. Audit. Res. 38 (2017), 165–178.

[34] M.T. Leary and R. Michaely, Determinants of dividend smoothing: Empirical evidence, Rev. Financ. Stud. 24 (2011), 3197–3249.

[35] L.-K. Liao, T. Mukherjee and W. Wang, Corporate governance and capital structure dynamics: An empirical study, J. Financ. Res. 38 (2015), 169–192.

[36] A. Najafi Moghadam, The effect of financial flexibility on capital structure decisions using two models of Brian Clark Folk and Andrew Wang, J. Financ. Eng. Secur. Manag. 33 (2017), 153–182.

[37] A. Ozkan and N. Ozkan, Corporate cash holdings: An empirical investigation of UK companies, J. Bank. Finance 28 (2004), no. 9, 2103–2134.

[38] J. Pinegar and L. Wilbricht, What managers think of capital structure theory: A survey, Finance Manag. 18 (1989), no. 4, 82–91.

[39] P. Piri, S. Pourfathi Ellahi and Z. Pavir, Investigating the relationship between financial flexibility and profit sharing in companies listed on the Tehran Stock Exchange, 5th Nat. Conf. Manag. Econ. Account., Technical and Vocational University of East Azarbaijan Province, Tabriz Industrial Management Organization, Tabriz, 2016.

[40] M. Sang and L. Quang, Value of financial flexibility, investment efficiency and adjustment speed of working capital, Eur. Financ. Manag. Ann. Conf., 2017, pp. 1–89.

[41] M. Singh, Threat of entry: Trade credit and the defense of market power, Available at SSRN 2665032, (2015), 1–52.

[42] S. Takami, Preserving and exercising financial flexibility in the global financial crisis period: The Japanese example, Corporate Account. Finance 27 (2016), no. 4, 13–25.

[43] M. Tewari, A. Byrd and P. Ramanlal, Callable bonds, reinvestment risk, and credit rating improvements: Role of the call premium, J. Financ. Econ. 115 (2015), no. 2, 349–360.