THE ROLE OF WORKING CAPITAL AS A SOURCE AND CASH FLOW INSENSITIVITY OF FIXED INVESTMENT IN LOW CASH FLOW LEVELS

Abstract

This paper proposes a model which demonstrates that the source role of working capital in lowering investment-cash flow sensitivity is more important for financially constrained firms with low cash flows. The model has two predictions for the samples where more financially constrained firms have lower cash flows. First, if working capital is not controlled, more financially constrained firms have lower investment-cash flow sensitivity. Second, if working capital is controlled, more financially constrained firms have higher investment-cash flow sensitivity. In order to test these predictions, regression equations were estimated with panel data fixed effects model and instrumental variable approach using a data of 255 companies traded on Turkish markets in 2005–2017 period. The findings support the predictions of the model.

Keywords

• Fixed Investment
• Financing Constraints
• Cash Flow
• Working Capital

DÜŞÜK NAKİT AKIŞ SEVİYELERİNDE İŞLETME SERMAYESİNİN KAYNAK ROLÜ VE SABİT YATIRIMIN NAKİT AKIŞ DUYARSIZLIĞI

Abstract

Çalışma, işletme sermayesinin kaynak rolünün yatırım-nakit akış duyarlılığını düşürücü etkisinin, düşük nakit akışına sahip finansal kısıtlı firmalarda daha önemli olduğunu gösteren bir model önermektedir. Daha çok finansal kısıtlı firmaların daha düşük nakit akışına sahip olduğu örneklemlerde modelin iki öngörüsü bulunmaktadır. Birincisi, işletme sermayesi kontrol edilmediğinde, daha çok finansal kısıtlı firmaların yatırım-nakit akış duyarlılığının daha düşük olmasıdır. İkincisi, işletme sermayesi kontrol edildiğinde, daha çok finansal kısıtlı firmaların, yatırım-nakit akış duyarlılığının daha yüksek olmasıdır. Öngörülerin test edilmesi için regresyon denklemleri, panel veri sabit etkiler modeli ve araç değişken yaklaşımı ile Türkiye piyasalarında işlem gören 255 şirketin 2005–2017 arası döneme ait verisi kullanılarak tahmin edilmiştir. Bulgular modelin öngörülerini desteklemektedir.

Keywords

• Sabit Yatırım
• Finansal Kısıtlar
• Nakit Akışı
• İşletme Sermayesi

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