Financial constraint and cash flow sensitivity of Brazilian companies

1Citations
Citations of this article
8Readers
Mendeley users who have this article in their library.

This article is free to access.

Abstract

This study analyzes the impact of financial constraint on the cash sensitivity of Brazilian companies, based on an empirical model that extrapolates literature with the moderation of the level of governance and the geographical vicinity of companies to the main financial center of the country. This issue is relevant in emerging markets due to poor market efficiency, economic inequality and access to financial market. A regression analysis performed with panel data in a sample of 319 companies (2009-2016) demonstrated a positive and significant impact of financial constraint on cash flow sensitivity, with specificities for the Brazilian market. Both theoretical and practical contributions are proposed, particularly around the need for internalization of the Brazilian stock exchange market.

Cite

CITATION STYLE

APA

Bragioni, C. A., & Santos, D. F. L. (2018). Financial constraint and cash flow sensitivity of Brazilian companies. Estudios Gerenciales, 34(149), 373–384. https://doi.org/10.18046/j.estger.2018.149.2735

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free