文章基本信息

标题：The Effect of Deviation from Optimal Cash Level on Adverse Selection and Moral Hazard in Firms Listed on Tehran Stock Exchange
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作者：Samira Joudi ; Gholamreza Mansourfar ; Hamzeh Didar 等
期刊名称：Iranian Journal of Management Studies
印刷版ISSN：2008-7055
出版年度：2019
卷号：12
期号：1
页码：69-90
DOI：10.22059/ijms.2018.258468.673146
语种：English
出版社：University of Tehran * College of Farabi
摘要：This study aims to investigate the impact of deviation from optimal level of cash holdings on adverse selection and moral hazard problems. The data set includes 106 listed firms of Tehran Stock Exchange during the period of 2005-2016 and both panel data and cross-sectional data multivariate regressions were utilized in different stage of analysis to test the hypotheses. According to the optimal level of cash holdings, firms were divided into two groups of firms with or without excess cash holdings. The results of the study revealed that lower optimal level of cash holdings increases adverse selection. In addition, higher optimal level of cash holdings leads to moral hazard. In other words, the findings confirmed both pecking order and free cash flow theories. The findings imply that there is a positive relationship between information asymmetry and marginal value of cash holdings. Such a relationship will gradually decrease when the firms hold higher than optimal level of cash and translate into a negative one.
关键词：Optimal cash level;Information Asymmetry;Adverse selection;Moral hazard;Marginal value of cash holdings