Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270264 
Year of Publication: 
2021
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 8 [Issue:] 1 [Article No.:] 1910161 [Year:] 2021 [Pages:] 1-11
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This research provides new evidence on financing constraints on corporate fixed investment by emphasizing the role of cash holdings as a precautionary source of funds. Applying GMM estimates to a sample of 106 Jordanian firms, the results suggest that firms follow trade-off theory in financing their investments but are financially constrained. The coefficient of the cash holdings variable appears to be negative in the fixed-investment regression, suggesting that when firms face financing shocks, they draw upon their precautionary cash reserves to smooth the path of their expenditure on fixed assets.
Subjects: 
cash holdings
financing constraints
fixed investment
cash holdings
financing constraints
fixed investment
JEL: 
G11
G30
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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