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a r t i c l e i n f o In this study, the advanced panel threshold regression model was used to test whether a marginal threshold value representing optimal financial decisions exists respective to the holding ratio of free cash flow, the debt ratio, and the dividend payout ratio determined by the U.S. life and property–casualty insurance industry. The results indicated that an optimal financial...

This paper extends the marketed asset disclaimer approach for real option valuation. In sharp contrast to the dominant real option valuation that assumes a stochastic process for an investment’s capital value, this paper demonstrates the valuation of a real option assuming that cash flow follows a stochastic process. We show that this method is at least equally effective and sometimes more intu...

The primary objective of this paper is to evaluate the association between market value and cash flow ratio, and to understand how economic instability alters it. Because this relationship is cross-temporal and may change if other financial indicators are considered, we model this relationship via multiple functional linear regression. We conclude from our multiple sectors study that market val...

Results: The analysis finds that cash flow sensitivity is a valid measure of financial constraints in the Indian manufacturing sector. Results according to splitting criteria found that investment decisions of standalone firms are more sensitive to cash flow than group affiliated firms. Further, splitting the firms according to market capitalization and tangible net worth reveals a higher degre...

We examine whether the cash flow sensitivity of is asymmetric using a sample 745 firms from understudied African countries over period 2000–2015. hypothesise and find significant asymmetry in conditional on financial constraints. Firms with positive save while those negative dissave. These differences are more apparent presence Our results affirm highlight severity impact constraints corporate ...