Financial Constraints, Investment, and the Value of Cash Holdings

By David J. Denis, Valeriy Sibilkov. 2010

1,271 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/3f22e2d3c2e45e210cf95ebe4b20c378458a9d5d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

In Strategy and Management

Citations in the corpus

Corporate cash holdings: Causes and consequences (2015, positive): “Denis and Sibilikov (2011) also show that greater cash holdings are more valuable to constrained firms because they allow these firms to undertake more value-increasing projects and hence the market responds more favorably to investments undertaken by these firms.”
Executive Stock Options, Differential Risk-Taking Incentives, and Firm Value (2012, background): “…that maintain precautionary cash balances (e.g., Greenwald, Stiglitz, and Weiss 1984; Myers and Majluf, 1984; Almeida, Campello, and Weisbach, 2004; Denis and Sibilkov 2010), we remove variation in cash balances related to precautionary savings by regressing firms’ cash balance on Hadlock and…”
How do managerial successions shape corporate financial policies in family firms (2011, background): “As recently argued (Denis and Sibilkov, 2010; Faulkender and Wang, 2006), liquidity holdings represent an alternative channel to ensure financial flexibility and enable firms to invest in value-enhancing projects, especially when other sources of finance are too costly or not available.”
Corporate social responsibility and corporate cash holdings (2016, background): “, 2008), the financial constraint motive (Almeida et al., 2004; Han and Qiu, 2007; Denis and Sibilkov, 2010), the tax motive (Foley et al.”
The effect of corporate tax avoidance on the cost of equity (2013, background): “Consistent with this reasoning, Denis and Sibilkov (2010) find that the value of cash holdings is higher for financially constrained firms because it allows them to increase investment. Edwards et al. (2015) also find that an increase in financial constraints leads firms to increase internallygenera”
Do Measures of Financial Constraints Measure Financial Constraints (2016, positive): “Conclusions Identifying which firms are financially constrained is key to understanding not only the effect of financing frictions on investment, capital structure, and risk management policies (Fazari, Hubbard, and Petersen (1988), Whited (1992), Denis and Sibilkov (2009)) but also the role that fi”