International Journal of Managerial Finance Pub Date : 2020-12-22 , DOI: 10.1108/ijmf-04-2020-0162 Michael Machokoto , Ngozi Ibeji , Chimwemwe Chipeta
Purpose
This paper examines the contentious relationship between investment and cash flow using the 2008–2009 credit supply shock as a form of the quasi-natural experiment.
Design/methodology/approach
Panel threshold models with unknown sample separation are estimated for a sample of publicly listed firms from nine African countries over the period 2003–2012. Using this approach reduces subjective or ex ante sample-splitting bias that is not accounted for in the extant literature.
Findings
The findings of the study indicate that investment–cash flow sensitivity is decreasing even during the global financial crisis (GFC) and for firms more likely to be financially constrained. The authors conclude that the usefulness of investment–cash flow sensitivity as a proxy for financial constraints is diminishing over time, even after directly addressing biases from ex ante subjective sample splitting and various forms of endogeneity.
Originality/value
The authors provide new empirical evidence from sharper tests of financial constraints for understudied African firms and highlight the need to relook at the usefulness of investment–cash flow sensitivity as a proxy of financial constraints.
中文翻译:
危机期间的投资现金流敏感性:非洲公司有什么不同吗?
目的
本文使用 2008-2009 年信贷供应冲击作为一种准自然实验形式,研究了投资与现金流之间的争议关系。
设计/方法/方法
样本分离未知的面板阈值模型是针对 2003-2012 年期间来自九个非洲国家的公开上市公司样本估计的。使用这种方法可以减少现有文献中没有考虑的主观或事前样本分割偏差。
发现
研究结果表明,即使在全球金融危机 (GFC) 期间,对于更可能受到财务限制的公司,投资现金流敏感性也在下降。作者得出结论,即使在直接解决了事前主观样本分割和各种形式的内生性的偏差之后,投资现金流敏感性作为财务约束代理的有用性也会随着时间的推移而减弱。
原创性/价值
作者通过对研究不足的非洲公司的财务约束进行更严格的测试提供了新的经验证据,并强调需要重新审视投资现金流敏感性作为财务约束代理的有用性。