Investigating the Asymmetric Models of Cash Holding Adjustment Speed: Dummy Variable, Quadratic and Threshold Regression Models

Advances in Mathematical Finance and Applications

مقاله 2، دوره 8، شماره 2، مرداد 2023، صفحه 367-383   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2022.1947856.1670

نویسندگان

Milad Emamgholipour Archi¹؛ Seyed Ali Nabavi Chashmi^{* 2}؛ Iman Dadashi³؛ Maryam Shafiee Kakhki⁴

¹Ph.D. Student, Department of Accounting, Babol Branch, Islamic Azad University, Babol, Iran.

²Department of Management, Babol Branch, Islamic Azad University, Babol, Iran.

³Department of Accounting, University of Qom, Qom, Iran

⁴Department of Economic, Babol Branch, Islamic Azad University, Babol, Iran.

چکیده

Proving helpful in an efficient management of cash in order to reach optimal cash and clearly explain relevant optimization policies, this study examined the adjustment speed of cash holding using asymmetric models. The sample consisted of 117 firms listed in Tehran Stock Exchange and their financial details over the 2009-2018 period. Once the optimal level for cash holding was identified, asymmetric models such as the dummy variable approach, the quadratic model, and the threshold regression model were employed to test the adjustment speed of cash holding. The results revealed that cash-rich firms are moving toward optimal cash at a greater speed than cash-poor firms. In addition, the results from the quadratic model showed a non-linear, skewing effect of the cash holding adjustment speed in terms of the different cash levels. Therefore, there is an optimal level of cash holding that enables firms to deviate from the cash target. Should firms fall outside the optimal cash range, cash adjustment will occur at a greater speed, and it will be both partial and asymmetric.

کلیدواژه‌ها

Optimal Cash؛ Cash Holding Adjustment Speed؛ Asymmetric Models

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