دانلود رایگان ترجمه مقاله نقش فساد در شکل دهی به ارزش دارایی های نقدی (نشریه الزویر 2017)

نقش فساد در شکل دادن به ارزش حفظ پول نقد

The role of corruption in shaping the value of holding cash

Abstract

This paper analyses the relationship between cash holdings and performance, considering the moderating effect of corruption that exists in the institutional context in which firms operate. The results show the importance of corruption in shaping the sign and the intensity of the value of cash holdings. The sign of the effect of corporate liquidity on firm performance changes according to varying levels of corruption. Holding cash is shown to have a noteworthy and no marginal role in supporting business activities and points to an avenue of investigation for future research.

1 Introduction

The main goal of the creation of cash stock is to generate financial flexibility in the firm (JP Morgan Research 2005). On the one hand, holding cash can reduce the transaction costs of interacting with the external capital market and at same time can be used as a financial buffer available to firms in times of difficulty accessing credit. On the other hand, cash reserves can cause opportunistic behaviour on the part of the management.

Although the majority of published research has shown a positive relationship between liquidity and performance, this relationship appears to depend on the particular characteristics of firms or the peculiarities of the institutional context in which they operate (Dittmar et al. 2003; Pinkowitz et al. 2006). In relation to this, our paper aims to highlight the moderating effect of corruption on the relationship between liquidity and performance. Corruption is a phenomenon that increases the uncertainty and the risk of a business because it questions the existence of a safe legal and judicial system. In particular, the use of cash stock, especially in some contexts, can be used in a distorted way for illicit activities, such as bribes, donations and wages given to specific economic agents, often public, to facilitate business operations or personal benefits.

This paper attempts to verify empirically how the effect of the cash holdings on performance may be contingent and dependent on the level of corruption in the institutional context. Interacting with the availability of cash, corruption could enhance the benefits rather than amplify the disadvantages of corporate liquidity, thus exacerbating problems of opportunism and inefficiencies in the system.