|
Cash Flow, Firm-Level Political Risk, and Financial Constraints (Case Study: Iran Capital Market)
|
Seyed Fakhreddin Fakhrehosseini   , Meysam Kaviani * , Zoleikha Morsali arzanagh , Parnaz Abedinpour Maboud |
| , m_kaviani@iau.ac.ir |
|
|
Abstract: (5 Views) |
| This study aims to analyze the impact of firm-level political risk and the moderating role of financial constraints on cash flow sensitivity. The research is applied in nature and employs a descriptive-correlational methodology. The statistical population includes 126 companies listed on the Tehran Stock Exchange during the period 2014 to 2023, selected through a systematic elimination method. Multivariate regression models were used for data analysis. The findings indicate that operating cash flow has a significant negative relationship with the cash ratio; however, under conditions of heightened political risk, this relationship weakens, and companies tend to hold higher levels of cash even when experiencing strong cash flows. Furthermore, the results show that financial constraints have a significant moderating effect on the relationship between cash flow and political risk, increasing the sensitivity of cash flow to environmental changes. These findings provide important insights for optimizing corporate liquidity policies and financial management in the face of political instability. |
|
| Keywords: Cash flow, political risk, financial constraints |
|
|
Full-Text [PDF 845 kb]
(3 Downloads)
|
|
Type of Study: Research |
Subject:
Special
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
