Academic Journal
Cash flow volatility and capital structure in MENA and Africa: the moderating role of fixed assets
| العنوان: | Cash flow volatility and capital structure in MENA and Africa: the moderating role of fixed assets |
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| المؤلفون: | Abdulrahamn Naser, A. N. Bany-Ariffin, Bolaji Tunde Matemilola |
| المصدر: | Cogent Economics & Finance, Vol 12, Iss 1 (2024) |
| بيانات النشر: | Taylor & Francis Group, 2024. |
| سنة النشر: | 2024 |
| المجموعة: | LCC:Finance LCC:Economic theory. Demography |
| مصطلحات موضوعية: | Capital structure, cash flow volatility, system-GMM, developing markets, pecking-order theory, David McMillan, University of Stirling, United Kingdom of Great Britain and Northern Ireland, Finance, HG1-9999, Economic theory. Demography, HB1-3840 |
| الوصف: | This paper investigates the direct association between cash flow volatility and capital structure (i.e. debt ratio). This study further examines the moderating role of fixed assets on the association between cash flow volatility and capital structure in the Middle East and North Africa (MENA) and African markets. This study applies a two-step system generalized method of moment regression as the main estimation technique to minimize endogeneity concern. The data consist of non-financial listed firms in 20 MENA and African countries covering 2011 to 2020. The results reveal that cash flow volatility is significantly and positively related to capital structure of MENA and African firms. The results also reveal that fixed assets have a negative moderating impact on the relationship between cash flow volatility and the capital structures of MENA and African firms. The results are robust to different estimation techniques. The findings inform managers to consider cash flow stability as a major factor in corporate risk management and strategic decision making and consider fixed asset investment decisions and the quality of fixed assets as a significant factor in debt choice. Moreover, policymakers should formulate efficient capital structure policies that consider cash flow stability factors and encourage fixed asset investments. |
| نوع الوثيقة: | article |
| وصف الملف: | electronic resource |
| اللغة: | English |
| تدمد: | 23322039 2332-2039 |
| Relation: | https://doaj.org/toc/2332-2039 |
| DOI: | 10.1080/23322039.2024.2373255 |
| URL الوصول: | https://doaj.org/article/2afe21ec964e4eccb63c086845c61ab4 |
| رقم الانضمام: | edsdoj.2afe21ec964e4eccb63c086845c61ab4 |
| قاعدة البيانات: | Directory of Open Access Journals |
Full Text Finder | تدمد: | 23322039 |
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| DOI: | 10.1080/23322039.2024.2373255 |