145
Views
0
CrossRef citations to date
0
Altmetric
Financial Economics

Cash flow volatility and capital structure in MENA and Africa: the moderating role of fixed assets

ORCID Icon, ORCID Icon &
Article: 2373255 | Received 21 Jan 2024, Accepted 21 Jun 2024, Published online: 05 Jul 2024

References

  • Al Samman, H., & Jamil, S. A. (2018). The impact of foreign direct investment (FDI) on stock market development in GCC countries. Pertanika Journal of Social Sciences & Humanities, 26(3), 2085–2100. https://ssrn.com/abstract=3671037
  • Awartani, B., Belkhir, M., Boubaker, S., & Maghyereh, A. (2016). Corporate debt maturity in the MENA region: Does institutional quality matter? International Review of Financial Analysis, 46, 309–325. https://doi.org/10.1016/j.irfa.2015.10.002
  • Bany-Ariffin, A. N., Matemilola, B. T., Wahid, L., & Abdullah, S. (2016). International diversification and firm’s value: Evidence from developing nations. Review of International Business and Strategy, 26(2), 166–183. https://doi.org/10.1108/RIBS-01-2014-0016
  • DeAngelo, H., & Masulis, R. (1980). Leverage and dividend irrelevancy under corporate and personal taxation. Journal of Finance, 35(2), 453–464. https://doi.org/10.2307/2327405
  • Denis, D. J., & McKeon, S. B. (2018). Persistent operating losses and corporate financial policies. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2881584
  • Etudaiye-Muhtar, O. F., Ahmad, R., & Matemilola, B. T. (2017). Corporate debt maturity structure: The role of firm level and institutional determinants in selected African countries. Global Economic Review, 46(4), 422–440. https://doi.org/10.1080/1226508X.2017.1350589
  • Fazzari, S., Hubbard, R., Petersen, B., Blinder, A., & Poterba, J. (1988). Financing constraints and corporate investment. Brookings Papers on Economic Activity, 1988(1), 141–206. https://doi.org/10.2307/2534426
  • Firmansyah, A., & Novianti, T. (2020). The effect of tax risk, hedging, income smoothing, and cash flows volatility on firm value. Test Engineering and Management, 83, 9675–9686.
  • Flannery, M. J., & Hankins, K. W. (2013). Estimating dynamic panel models in corporate finance. Journal of Corporate Finance, 19(1), 1–19. https://doi.org/10.1016/j.jcorpfin.2012.09.004
  • Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1–37. https://doi.org/10.1111/j.1755-053X.2009.01026.x
  • Guizani, M., & Ajmi, A. N. (2021). The capital structure decision of Islamic and conventional banks: Empirical evidence from Malaysia. Asia-Pacific Journal of Business Administration, 13(2), 216–234. https://doi.org/10.1108/APJBA-06-2020-0218
  • Harris, C., & Roark, S. (2019). Cash flow risk and capital structure decisions. Finance Research Letters, 29(C), 393–397. https://doi.org/10.1016/j.frl.2018.09.005
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
  • Keefe, M. O., & Nguyen, P. H. (2023). The influence of cash flow volatility on firm use of debt of different maturities or zero-debt: International evidence. International Review of Economics & Finance, 86, 684–700. https://doi.org/10.1016/j.iref.2023.03.035
  • Keefe, M. O. C., & Yaghoubi, M. (2016). The influence of cash flow volatility on capital structure and the use of debt of different maturities. Journal of Corporate Finance, 38, 18–36. https://doi.org/10.1016/j.jcorpfn.2016.03.001
  • Kraus, A., & Litzenberger, R. (1973). A State-preference model of optimal financial leverage. Journal of Finance, 28(4), 911–922. https://doi.org/10.2307/2978343
  • Li, L., & Islam, S. Z. (2019). Firm and industry specific determinants of capital structure: Evidence from the Australian market. International Review of Economics & Finance, 59, 425–437. https://doi.org/10.1016/j.iref.2018.10.007
  • Matemilola, B. T., Bany-Ariffin, A. N., & Azman-Saini, W. N. W. (2012). Financial leverage and shareholder’s required return: Evidence from South Africa corporate sector. Transition Studies Review, 18(3), 601–612. https://doi.org/10.1007/s11300-012-0214-x
  • Matemilola, B. T., Bany-Ariffin, A. N., Azman-Saini, W. N. W., & Nassir, A. M. (2018). Does top managers’ experience affect firms’ capital structure? Research in International Business and Finance, 45(C), 488–498. https://doi.org/10.1016/j.ribaf.2017.07.184
  • Memon, Z. A., Chen, Y., Tauni, M. Z., & Ali, H. (2018). The impact of cash flow volatility on firm leverage and debt maturity structure: Evidence from China. China Finance Review International, 8(1), 69–91. https://doi.org/10.1108/CFRI-06-2017-0106
  • Mitnick, B. M. (1975). The theory of agency: The policing "paradox" and regulatory behavior. Public Choice, 24(1), 27–42. https://doi.org/10.1007/BF01718413
  • Modigliani, F., & Miller, M. (1963). Corporate income taxes and the cost of capital: A correction. American Economic Review, 53, 433–443. https://www-jstor-org.ezadmin.upm.edu.my/stable/1809167?seq=1
  • Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48(3), 261–297. https://www-jstor-org.ezadmin.upm.edu.my/stable/1809766
  • Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5(2), 147–175. https://doi.org/10.1016/0304-405X(77)90015-0
  • Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. https://doi.org/10.1016/0304-405X(84)90023-0
  • Nguyen, T. V., Nguyen, C. T. K., Ho, P. T. M., Nguyen, H. T., & Nguyen, D. V. (2021). How does capital structure affect firm’s market competitiveness? Cogent Economics & Finance, 9(1), 1–14. https://doi.org/10.1080/23322039.2021.2002501
  • Nkoa, B. (2018). Determinants of foreign direct investment in Africa: An analysis of the impact of financial development. Economics Bulletin, 38(1), 221–233.
  • Öztekin, Ö., & Flannery, M. J. (2012). Institutional determinants of capital structure adjustment speeds. Journal of Financial Economics, 103(1), 88–112. https://doi.org/10.1016/j.jfineco.2011.08.014
  • Ross, S. (1977). The Determination of Financial Structure: The Incentive-Signaling Approach. The Bell Journal of Economics, 8(1), 23–40. https://doi.org/10.2307/3003485
  • Saif-Alyousfi, A. Y. H., Md-Rus, R., Taufil-Mohd, K. N., Mohd Taib, H., & Shahar, H. K. (2020). Determinants of capital structure: Evidence from Malaysian firms. Asia-Pacific Journal of Business Administration, 12(3/4), 283–326. https://doi.org/10.1108/APJBA-09-2019-0202
  • Shaheen, S., Hussain, B., & Bhatti, A. A. (2021). Cash flow volatility and debt maturity structure: Role of macroeconomic factors. Business & Economic Review, 13(3), 85–116. https://doi.org/10.22547/BER/12.3.4
  • Tesema, T. N. (2024). The effect of capital structure on performance: Empirical evidence from manufacturing companies in Ethiopia. Cogent Economics & Finance, 12(1), 1–19. https://doi.org/10.1080/23322039.2023.2300926
  • Vengesai, E., & Kwenda, F. (2018). Cash flow volatility and firm investment behaviour: Evidence from African listed firms. Journal of Economics and Behavioral Studies, 10(6J), 129–149. https://doi.org/10.22610/jebs.v10i6(J).2604