Yıl 2020, Cilt 9 , Sayı 2, Sayfalar 182 - 188 2020-06-30

INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS

Omer Faruk TAN [1] , Emin AVCI [2]


Purpose - This study analyzes the inventory investment – cash flow sensitivity for 166 manufacturing firms in Turkey listed in Borsa Istanbul. The time spans 2006-2018. Methodology - Based on the previous literature, Lovell’s (1961) target adjustment model is used. The baseline equation model is estimated by the system Generalized Method of Moments (GMM). Findings- The relationship between inventory investment and cash flow is statistically positive for constrained firms, while insignificant for unconstrained firms according to all models. The effect of Gross Domestic Product (GDP) on inventory investment is positive and significant for both constrained and unconstrained firms, this implies that GDP contributes to an increase in inventory investment. Conclusion- This study is the first one that analyzes the inventory investment and cash flow relationships for Turkish manufacturing firms and want to fulfill this gap in the literature. It is found that cash flow is positively significant for constrained firms according to size and age classification criteria.
Inventory management, cash flows, Turkey, GMM Model, financial constraints
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Birincil Dil en
Konular İşletme, İşletme Finans
Bölüm Articles
Yazarlar

Orcid: 0000-0002-8875-4696
Yazar: Omer Faruk TAN (Sorumlu Yazar)
Kurum: Marmara University
Ülke: Turkey


Orcid: 0000-0003-3172-897X
Yazar: Emin AVCI
Kurum: Marmara University
Ülke: Turkey


Tarihler

Yayımlanma Tarihi : 30 Haziran 2020

Bibtex @araştırma makalesi { jbef758905, journal = {Journal of Business Economics and Finance}, issn = {}, eissn = {2146-7943}, address = {}, publisher = {PressAcademia}, year = {2020}, volume = {9}, pages = {182 - 188}, doi = {10.17261/Pressacademia.2020.1223}, title = {INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS}, key = {cite}, author = {Tan, Omer Faruk and Avcı, Emin} }
APA Tan, O , Avcı, E . (2020). INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS . Journal of Business Economics and Finance , 9 (2) , 182-188 . DOI: 10.17261/Pressacademia.2020.1223
MLA Tan, O , Avcı, E . "INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS" . Journal of Business Economics and Finance 9 (2020 ): 182-188 <https://dergipark.org.tr/tr/pub/jbef/issue/55319/758905>
Chicago Tan, O , Avcı, E . "INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS". Journal of Business Economics and Finance 9 (2020 ): 182-188
RIS TY - JOUR T1 - INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS AU - Omer Faruk Tan , Emin Avcı Y1 - 2020 PY - 2020 N1 - doi: 10.17261/Pressacademia.2020.1223 DO - 10.17261/Pressacademia.2020.1223 T2 - Journal of Business Economics and Finance JF - Journal JO - JOR SP - 182 EP - 188 VL - 9 IS - 2 SN - -2146-7943 M3 - doi: 10.17261/Pressacademia.2020.1223 UR - https://doi.org/10.17261/Pressacademia.2020.1223 Y2 - 2020 ER -
EndNote %0 Journal of Business Economics and Finance INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS %A Omer Faruk Tan , Emin Avcı %T INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS %D 2020 %J Journal of Business Economics and Finance %P -2146-7943 %V 9 %N 2 %R doi: 10.17261/Pressacademia.2020.1223 %U 10.17261/Pressacademia.2020.1223
ISNAD Tan, Omer Faruk , Avcı, Emin . "INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS". Journal of Business Economics and Finance 9 / 2 (Haziran 2020): 182-188 . https://doi.org/10.17261/Pressacademia.2020.1223
AMA Tan O , Avcı E . INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS. JBEF. 2020; 9(2): 182-188.
Vancouver Tan O , Avcı E . INVENTORY INVESTMENT AND CASH FLOW SENSITIVITY: EVIDENCE FROM TURKISH FIRMS. Journal of Business Economics and Finance. 2020; 9(2): 182-188.