Uncertainty Determinants of Corporate
نویسندگان
چکیده
This paper investigates the link between the optimal level of non-financial firms’ liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio in response to changes in either macroeconomic or idiosyncratic uncertainty. We test this hypothesis using a panel of non-financial US firms drawn from the COMPUSTAT quarterly database covering the period 1993–2002. The results indicate that firms increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases.
منابع مشابه
Investigating the Impact of Taxation on Corporate Profit and Exchange Rate Uncertainty on FDI Capture in Iran: Fuzzy Approach
In the modern world economy, foreign direct investment plays a very important role. Empirical studies show that the simultaneous study of the impact of corporate tax and exchange rate uncertainty on FDI absorption has not received much attention. In this article, we refer to the tax on corporate profits and exchange rate uncertainty on attracting FDI in Iran during 1981 to 2018 were studied. Ot...
متن کاملUncertainty Determinants of Corporate Liquidity
This paper investigates the link between the optimal level of non–financial firms’ liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for cash that shows that firms are likely to change their liquidity ratio in response to changes in uncertainty. We test this proposition using a panel of non–financial US firms drawn from COMPUSTAT quarterly database co...
متن کاملSome Determinants of Corporate Financing Decisions: Evidence from the Listed Companies in Tehran Stock Exchange
The aim of this empirical study is to explore the trade-off model and pecking order model of capital structure. The investigation is performed using panel data procedures for a sample of 76 firms listed in Tehran Stock Exchange during 2007-2010.The study employs OLS regression model in examining the capital structure of firms in Iran. The study employs variables reflecting differing theoretical...
متن کاملIdiosyncratic Risk and Disclosure of Corporate Social Responsibility: Emphasizing the Role of Corporate Governance
In this study, the impact of corporate social responsibility (CSR ) disclosure on idiosyncratic risk has been investigated concerning three stakeholder theory, information asymmetry, and risk management. It also goes further and explores the impact of some corporate governance mechanisms such as ownership structure, board characteristics, and incentive contracts on this relationship. To achieve...
متن کاملOptimal degree of foreign ownership under uncertainty
This paper studies the determinants and consequences of equity ownership in multinational affiliates. We construct a multi-period model of foreign direct investment with incomplete contracts and uncertainty to analyse the size of equity stakes. The productivity of a multinational parent and its supplier is unknown initially to both sides and revealed only after joint production. This kind of ma...
متن کامل