The Value of Financial Flexibility

By Andrea Gamba, Alexander J. Triantis. 2008

688 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/d7431e65c653411b795ba6e41d9698cf54af5bca

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Citations in the corpus

Cash holdings, risk, and expected returns (2012, background): “In this way, the link between corporate precautionary savings and risk premia can be explicitly studied.1 As in Kim, Mauer, and Sherman (1998), Gamba and Triantis (2008) study the interaction between cash holdings and financing constraints in a setup in which firms can both hoard cash and issue…”
Capital Structure Dynamics and Transitory Debt (2011, background): “Gamba and Triantis (2008) note that, by accumulating cash balances while debt is outstanding, firms can economize on future debt issuance costs.”
Cash Holdings, Competition, and Innovation (2016, positive): “…to hold more cash than their old–economy counterparts.3 Existing literature that examines cash holdings of innovative firms tends to focus on the precautionary motive for holding cash, arising from uncertain future expenditures (e.g., Gamba and Triantis (2008) and Bolton, Chen, and Wang (2011)).”
The value of financial flexibility and corporate financial policy (2014, methodology): “The model of Gamba and Triantis (2008) indicates that besides a firm's growth opportunities and its profitability, the effective costs of holding cash, the cost of external financing, as well as the reversibility of capital determine the value of financial flexibility.”
Real Effects of the Audit Choice (2016, positive): “Prior research suggests that financial flexibility enables firms to avoid financial distress in the face of negative shocks, and to readily fund investment when profitable opportunities arise (Gamba and Triantis, 2008).”
Financial Flexibility, Investment Ability, and Firm Value: Evidence from Firms with Spare Debt Capacity (2010, background): “Graham and Harvey (2001) report that 37% of US firms have a flexible target debt ratio, while a further 35% have a stricter target.”
The Mystery of Zero-Leverage Firms (2013, neutral): “For the analysis of corporate cash policy and differences between cash and negative debt , see Acharya , Almeida , and Campello ( 2007 ) , Gamba and Triantis ( 2008 ) , and Acharya , Davydenko , and Strebulaev ( forthcoming ) .”
From Finance to Marketing: The Impact of Financial Leverage on Customer Satisfaction (2015, background): “Research in finance has confirmed that firms with higher financial flexibility make more and better-quality investments (Marchica and Mura 2010) and have higher firm value (Gamba and Triantis 2008).”
Why Has the Value of Cash Increased Over Time? (2018, background): “Theoretical work, such as that of Gamba and Triantis (2008) and Riddick and Whited (2009), builds on this intuition.”