Corporate cash holdings and promoter ownership

Modely, ktere předpovidaji financni riziko spolecnosti, jsou důležitými systemy vcasneho varovani pro stakeholdery podniku. Větsina dosavadnich modelů byla vyvinuta s využitim financnich ukazatelů. Při financnim rozhodovani se vsak stale větsi pozornost věnuje roli textových informaci, ktere mohou poskytnout dalsi vhled do manažerských nazorů a zaměrů a ktere se v posledni době použivaji k ucinnějsimu předpovidani financni výkonnosti podniku. Předchozi přistupy se v tomto ohledu převažně zaměřovaly na sentimentalni analýzu manažerske komunikace. Role sentimentu souvisejiciho s kontextem vsak v oblasti financnich rizik zůstava nedostatecně pochopena. Zde zkoumame, jak sentiment souvisejici s rizikem ve verbalni manažerske komunikaci může předpovědět financni výkonnost spolecnosti, vcetně zadluženosti, ziskovosti, tržni hodnoty a rizika bankrotu. Nase zjistěni poskytuji důkazy o hlavni roli sentimentu souvisejiciho s rizikem jako ukazatele výkonnosti spolecnosti z hlediska financnich rizik. Zejmena pomoci nových seznamů slov souvisejicich s rizikem ukazujeme, že proaktivni řizeni rizik, ktere hleda přiležitosti, ma výrazně pozitivni dopad na financni výkonnost, což znamena, že zucastněne strany by měly ve výrocnich zpravach spolecnosti peclivě zvažit manažerskou komunikaci souvisejici s rizikem.

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Mining risk-related sentiment in corporate annual reports and its effect on financial performance

The article examines the pattern of cash holdings of 266 Indian companies comprised in the S&P BSE 500 index for the period 2005–2015 to understand the factors that influence the level of c...

Corporate Cash Holdings: An Empirical Investigation of Indian Companies:

We examine the determinants of corporate cash management policies across a broad sample of international firms. We document that firms in countries with strong legal protection of minority investors are more likely to decrease their cash holdings in response to an increase in cash flow than are firms in countries with weak legal protection. This relationship is most pronounced for firms that are financially constrained and those with high hedging needs. More importantly, we do not find evidence that financial development plays an incremental impact on the cash flow sensitivity of cash, after controlling for the effect of legal protection. Therefore, we argue that the legal protection of investors (rather than financial development) represents the first-order effect in influencing international firms' cash management policies. The results are robust to alternative specifications. In general, our findings reinforce the importance of country-level legal protection of investors in mitigating the effects of firm-level financial constraints and hedging needs on corporate cash management policies.

The determinants of corporate cash management policies: Evidence from around the world

In present dynamic environment, financial flexibility has become an important constituent of corporate finance decisions. Financial flexible firms are ostensibly more resilient to exogenous shock vis-a-vis non-flexible firms. Capital structuring decisions, payout decisions and conservative cash policy are various tactics adopted by financial managers for attaining financial flexibility. Present study attempts to identify key enablers of financial flexibility and structure them into a total interpretive structural model using modified TISM approach. Using literature review, business environment, cost of capital, stage of life cycle, free cash reserves, agency relations, payout policy, and leverage are identified as seven constituents of corporate financial flexibility. Based on their interpretive interdependencies/ relationship, a hierarchical model of financial flexibility is developed exhibiting a holistic view of financial flexibility decisions from triggers to final outcome. The findings result into a four-step novel framework situation-actors-actions-outcome framework of financial flexibility, with business environment and stage of life cycle as situation/ triggers, free cash reserves and agency as actors/precursors, payout and leverage as actions/ decisions and cost of financing as outcome of financial flexibility decision. Model lends credence to financial flexibility as situation-specific decision. It is a reservoir to address exogenous income and investment shocks. Firms generating free cash flow are invariably flexible to meet income and investment shocks. However, firms with fluctuating operations need buffer in form of cash reserves or debt capacity to address the contingencies. Investment in good corporate governance practices can serve as an intangible reserve and an alternative to costly tangible ways such as cash surplus and leverage. Such firms with shareholders’ support are deemed more flexible in payouts, capital structuring, investment decisions and overall operations, and less reliant on external financing.

Modified Total Interpretive Structural Model of Corporate Financial Flexibility

This article aims at examining the financial determinants of corporate cash holdings. The study employs panel data regression method. It uses the fixed-effects method based on Hausman test results ...

Determinants of Corporate Cash Holdings

Stock indices are considered to be the barometers of any economy. This study examines the long run equilibrium relationship between stock indices and macroeconomic variables by applying the Johansen and Juselius (1990) Vector Error Correction Framework. It considers sector indices of the Bombay Stock Exchange and select macroeconomic variables for this purpose. The empirical results reveal that the stock indices and the macroeconomic variables are cointegrated and possess a longrun equilibrium relationship. The relationship has been found to be significantly negative with the index of industrial production, rupee-dollar exchange rate, foreign exchange reserves and wholesale price index, but significantly positive with money supply. The results of the study would enable investors and traders in taking informed decisions. They would also help companies in developing a view on the economy so as to facilitate their financial planning process.

The Long Run Relationship Between Stock Indices and Macroeconomic Variables


Purpose
The occurrence of COVID-19 has impacted the wide-reaching dimensions of manufacturing, materials, procurement, management, etc., and has loaded disruptions in the wide range of supply chain (SC) activities. The impact of COVID-19 has twisted supplier performance and influenced stakeholders’ thinking towards selecting supplier sources and making strategic sourcing decision for convinced arrangement of construction management (CM) resources. Nowadays, suppliers are intently evaluated by stakeholders in post-COVID-19 phase to induce agile availability of CM resources. Accordingly, this paper aims to demonstrate competent CM dimensions under post COVID-19 scenario for ease managing construction projects by the stakeholders.


Design/methodology/approach
The authors have implicated Grey Sets Theory along with decision-making trial and evaluation laboratory (DEMATEL) technique for understanding significant outcomes. Varieties of diverse decision aspects responsible for strategically influencing supplier sourcing decision is projected under post COVID-19 scenario for handling construction projects by the stakeholders.


Findings
This study investigated sustainable construction management dimensions (SCMD) at the stage of resource deliveries and client aspirations under post COVID-19 situation. The study demonstrated “Lead time” as the most crucial, “Product Range” as the second and “Customers dealings and relationship” as the third crucial aspect considering by the stakeholders for selecting supplier sources based on the attainment of performance score of 0.1338, 0.1273 and 0.1268, respectively. It is found that high lead time stimulates the stakeholders to divert their orders to other competent supplier sources holding a low degree of lead time as compared.


Research limitations/implications
The present study rollovers its existence by serving critical thinking, conceptual modelling, criteria identification and evaluation under CM domain for drafting effectual strategies by the suppliers. The study investigated the impact of COVID-19 on stakeholders’ decision-making and enlisted SCMD that strategically stimulated them in choosing supplier sourcing decision.


Originality/value
The present study realizes the insights of stakeholders in the post COVID-19 scenario related to the supplier sources based on performance score. The study quantified sustainable supplier attribute for construction work and practices. The study analysed the expectations of the stakeholders purchasing different varieties of construction materials from supplier sources for civil works in the post COVID-19 scenario.


K.T. Vigneswara Rao

Papers

Determinants of Corporate Cash Holdings

The Long Run Relationship Between Stock Indices and Macroeconomic Variables

Post-COVID-19 strategic sourcing decisions for escorting stakeholders’ expectations and supplier performance in construction project works