JOURNAL OF FINANCIAL MANAGEMENT STRATEGY
Year:2018 | Volume:5 | Issue:4 (19) |Papers Count:8

The aim of this study is to investigate the effect of leverage and free cash flow on the cash holding adjustments. This study is significant as its finding can be of help in the efficient management of cash holding for achievement of optimal cash and in establishment of a good policy for cash management. Therefore, in this study, information about 60 companies in Tehran Stock Exchange during 2003 to 2015 is gathered and analyzed with the Regression Method. The findings show that there is a direct relationship between the leverage and free cash flow with the cash holding adjustments. This relationship is as same as in the companies with the deficit but this relationship does not exist in the companies with the excess cash holding. These findings can be an emphasis on the need of cash management to achieve optimal cash decisions.

The investigation of the effects of agency costs on the firms’ performance and investors’ decision is very important. The purpose of this study is to evaluate the effect of agency costs on the speediness of stock price adjustment. To measure the agency costs, three variables of the ratios of operating costs to sales, asset turnover, and the interaction between growth opportunities and free cash flows were used and to measure the speed of stock price adjustment, Hou and Moskowitz method was applied. The population of this research consists of firms listed in Tehran Stock Exchange. The study used data from the years 2008 to 2014 for 130 companies. To analyze the data and test the hypothesis, correlation and regression method is used. The results indicate that the ratio of operating costs to sales significantly affect the speed of stock price adjustment. However, no significant effect of the asset turnover and the interaction between growth opportunities and free cash flows on the speediness of stock price adjustment was seen.

Financial flexibility serves as a bridge between theory and practice of determining the financial structure (the most important determinant factor) of corporates. It provides financing to respond appropriately to events and unanticipated cases to maximize corporate value. The main objective of the research is to provide a model for financial flexibility of the companies accepted in Tehran Stock Exchange (according to the environmental conditions of the companies). According to the research purpose, a research questionnaire based on exploratory studies and exploratory research was developed in the specialized texts. After the questionnaire was written, the views of financial experts (academic and corporate scholars) on the issue of financial flexibility through the Delphi method were taken into consideration, and the theoretical framework and components of financial flexibility of the corporate were reviewed and evaluated. In this research, the proposed financial flexibility model with the consensus of the respondents and using statistical variables Suitable presentation the model has a two-dimensional "internal financial flexibility" and "external financial flexibility" and is a key component of debt capacity, cash holdings, and capital market size. Several determinants can be calculated and measured. From experts' point of view, a total of 16 indexes and 15 key determinants for measuring components can be used.

Capital structure is usually very important for companies especially when they want to finance. This subject can be affected by firm's life cycle stages and company performance. The speed of capital structure adjustment through firm's life cycle and the relationship between profitability and capital structure are investigated in this research. Debt to equity ratio and return on asset are used as proxies for capital structure and profitability respectively. Firm's life cycle phases are measured using cash flow patterns in operating, investing and financing aspects. In order to test hypotheses, financial data of 149 firms listed in TSE during 2008 to 2015 are collected with considering some criteria. Linear dynamic panel data models are run to analyze data. The results reveal that firms which are in maturity phase adjust their capital structure faster than those in introduction or growth phases. In addition, changing life cycle phase decreases capital structure adjustment speed. Focus on the profitability relation with debt ratio shows it diminishes external financing and firm's life cycle phase does not affect it. Changing firm's life cycle, however, makes the relationship more strongly negative.

In this research, the mediation of information asymmetry on the relationship between audit quality and financing policies by using structural equation modeling approach has been examined. Among the accepted companies, 99 ones in Tehran Stock Exchange were selected for statistical samples from 2006 to 2013 in order to attain the research purposes. To measure the information asymmetry as mediator variable, it has used the observable variables such as stock price volatility, earning forecast error, firm size and growth opportunities. Also, it used variables like percentage of institutional investors, the type of audit opinion, audit office size and the audit tenure to measure audit quality as independent variable and total debts to total assets ratio is considered as dependent variable. In addition, profitability & market structure are entered to the model as control variables. The result showed that companies with high audit quality are more likely to issue equity. The results also show that audit quality does not have significant effect on information asymmetry. Other results indicate no significant relationship between information asymmetry and financing policies. Therefore, the mediator role of information asymmetry between audit quality and financing policies is rejected.

The purpose of this study was to investigate the effect of corporate governance and conservatism on information asymmetry. For this purpose, information about 78 companies listed in Tehran Stock Exchange during the years 2011-2015 has been studied. The structural equation technique is used to analyze the assumptions. In this research, the predictive error of profit and growth opportunities (including Q Tobin and market share to office sales) have been used as indicators of information asymmetry measurement. After confirming the acceptable fit of the measurement and structural patterns of the research, the results indicate that conservatism has a direct impact on information asymmetry and the reverse impact of corporate governance on information asymmetry. The results also show that the internal mechanisms of the corporate governance system which include the size of the board of directors, the ratio of non-executive directors to the board of directors, and the separation of the role of the managing director from the board of directors, is not asymmetrical for the companies that are accepted in Tehran Stock Exchange. But the foreign mechanisms of the corporate governance system, which include institutional ownership, major ownership, and ownership concentration, reflect the impact of these factors on reducing information asymmetry.

This research investigates the effect of sales changes and expectations of sales growth on the stickiness cost in uncertainty conditions. In the uncertainty about the most important thing, the leader of the organization is integrated cost management. Integrated Cost Management Strategic Management is the choice of providing flexible resources to meet the sources of uncertainty in demand. Therefore, it is important to study the stickiness of costs and the factors affecting it. The statistical population of the research is all companies listed in Tehran Stock Exchange during the period of 2007 to 2016. The sample is also selected using a systematic elimination method of 73 companies. The research hypotheses are about the study of the implicit cost behavior. The research method is using multivariate regression based on Data panel. Also, research data was collected using the software. The evidence of research suggests that with increasing sales growth and the ratio of market value to book value, cost stickiness also increases. But in spite of the fluctuations of historical sales, it reduces the cost stickiness.

The purpose of this study is to investigate the effect of risk disclosure in financial reporting. The statistical society includes companies accepted in Tehran Stock Exchange (TSE), and the time span of the study is from the beginning of 2010 up to the end of 2013. To calculate some variables, the data of years 2009 and 2014 have also been used. In this research, it was predicted that increasing the level of risk disclosure could reduce the problems of information asymmetry and agency conflicts for investors. Based on what was anticipated, it was assumed that there is a relationship between risk disclosure and stock prediction capability by earnings changes. It was also anticipated that there was a relationship between risk disclosure and the firm value. The results indicate that there is no significant relationship between the level of risk disclosure of firms and the information content of earnings changes. Also there was no significant relationship between disclosure risk and firm value. Disclosed information irrelevance and inability and lack of knowledge in the interpretation of the information disclosed to investors about risk items, could be the main reasons for this conclusion.