The Impact of Financial Inflexibility on Value Anomaly

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

MEHRABANPOUR MOHAMMAD REZA; Alavi Nasab Seyyed Mohammad; ABBASIAN EZATOLLAH; Porkavosh Taher

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: FINANCIAL RESEARCH Year:2020 | Volume:21 | Issue:4 Page(s): 612-636

Download Full-Text

Persian Verion

View:

468

Download:

Cites:

Information Journal Paper

Title

The Impact of Financial Inflexibility on Value Anomaly

Author(s)

MEHRABANPOUR MOHAMMAD REZA | Alavi Nasab Seyyed Mohammad | ABBASIAN EZATOLLAH | Porkavosh Taher | Issue Writer Certificate

Keywords

Total leverageQ1

Investment irreversibilityQ1

Financial inflexibilityQ1

Financial constraintQ1

Value anomalyQ1

Abstract

Objective: The purpose of this study is to determine the effect of Financial inflexibility on Value anomaly. According to the research literature, three related sources of Financial inflexibility have been identified, and we have created a composite inflexibility index, based on the variables of Investment irreversibility, Total leverage and Financial constraint. Methods: In order to achieve the research goals, the monthly data of a 450 year-firm has been used during the period from 2008 to 2017. To test the research hypotheses, Fama and French (1993) three-factor Asset Pricing model was used, and by following the Poulsen, Faff and Gray (2013) studies Financial inflexibility, the fourth factor has been added to it. In order to investigate the role of Financial inflexibility on Value anomaly, the above models were used once by using combined data; and once again, it is fitted with a time-series method. Results: Financial inflexibility has a significant impact on Stock and portfolio risk premium. Conclusion: The results of the research show that the Financial inflexibility leads to a positive risk premium in the stock level and investment portfolios and value firms gain higher future returns than growth firms due to the compensation for the risk of Financial inflexibility, and Finally, the positive relationship of Financial inflexibility factor with inflexible portfolios and negative relationship with flexible portfolios indicates that Financial inflexibility independently subjects firms to common shocks.

Cites

No record.

References

No record.

Cite

APA: Copy

MEHRABANPOUR, MOHAMMAD REZA, Alavi Nasab, Seyyed Mohammad, ABBASIAN, EZATOLLAH, & Porkavosh, Taher. (2020). The Impact of Financial Inflexibility on Value Anomaly. FINANCIAL RESEARCH, 21(4 ), 612-636. SID. https://sid.ir/paper/91266/en

Vancouver: Copy

MEHRABANPOUR MOHAMMAD REZA, Alavi Nasab Seyyed Mohammad, ABBASIAN EZATOLLAH, Porkavosh Taher. The Impact of Financial Inflexibility on Value Anomaly. FINANCIAL RESEARCH[Internet]. 2020;21(4 ):612-636. Available from: https://sid.ir/paper/91266/en

IEEE: Copy

MOHAMMAD REZA MEHRABANPOUR, Seyyed Mohammad Alavi Nasab, EZATOLLAH ABBASIAN, and Taher Porkavosh, “The Impact of Financial Inflexibility on Value Anomaly,” FINANCIAL RESEARCH, vol. 21, no. 4 , pp. 612–636, 2020, [Online]. Available: https://sid.ir/paper/91266/en

Related Journal Papers