Is the cash flow sensitivity of cash asymmetric? African evidence

Machokoto, M. and Areneke, G. (2020) Is the cash flow sensitivity of cash asymmetric? African evidence. Finance Research Letters. 1544-6123.

Item Type:	Article
Abstract:	We examine whether the cash flow sensitivity of cash is asymmetric using a sample of 745 firms from understudied African countries over the period from 2000–2015. We hypothesise and find significant asymmetry in the cash flow sensitivity of cash conditional on cash flow and financial constraints. Firms with positive cash flow save while those with negative cash flow dissave. These differences are more apparent in the presence of financial constraints. Our results affirm the asymmetry in the cash flow sensitivity of cash and highlight the severity of the impact of financial constraints on corporate decisions in emerging markets.
Uncontrolled Keywords:	Asymmetry, Financial constraints, The cash flow sensitivity of cash
Creators:	Machokoto, Michael and Areneke, Geofry
Faculties, Divisions and Institutes:	Faculties > Faculty of Business & Law > Accounting & Finance
Date:	22 January 2020
Date Type:	Acceptance
Journal or Publication Title:	Finance Research Letters
Volume:	0
Number:	0
Language:	English
DOI:	https://doi.org/10.1016/j.frl.2020.101440
ISSN:	1544-6123
Status:	Published / Disseminated
Refereed:	Yes
Related URLs:	https://www.mendeley.com/catalogue/aea2a... https://pure.northampton.ac.uk/en/public...
URI:	http://nectar.northampton.ac.uk/id/eprint/12640

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