We examine the impact of outside purchase contracts on firm risk and firm capital structure. We find that firms with more outside purchase contracts have less risky cash flows. Despite these less risky cash flows, firms with these contracts also have less financial leverage especially when they operate in high value-added industries. Examining firm financing decisions, we document that firms wi...

Diversified firms can trade at a discount to a matched portfolio of single-segment firms either because diversified firms have lower expected cash flows or because they have higher expected returns. We analyze whether diversification-discount firms have higher expected returns in order to compensate investors for offering less upside potential (or skewness exposure) than focused firms. Our empi...

This study investigates empirically the value investors place in excess cash holdingand how managerial ability impact on the value of cash holding for Iranianfirms from 2006 to 2014. In this research, managerial ability calculated by usingthe data envelopment analysis (DEA). Following the approach of Faulkender andWang, we find that the relation between managerial ability and value of cash hold...

economic sanctions appear to be a common feature of political interactions between states. economic sanctions have become increasingly important as alternative to military conflict since the last decade of twentieth century. this paper provides, through a gravity model, an estimation of the impact of economic sanctions on bilateral trade flows between iran and its major trading partners during ...

This paper presents the economic ordering policies of time-dependent deteriorating items in presence of trade credit using of discounted cash-flows (DCF) approach. In inventory analysis a DCF approach permits a proper recognition of the financial implication of the opportunity cost and out-of-pocket cost. In the inventory model, shortages are not allowed. In this study mathematical models are a...

Case-Based Reasoning (CBR) simulates human way of solving problems as it solves a new problem using a successful past experience applied to a similar problem. In this paper we describe a CBR system that performs forecasts for cash flow accounts. Forecasting cash flows to a certain degree of accuracy, is an important aspect of a Working Capital decision support system. Working Capital (WC) manag...

Objective: Market anomalieschange with economic conditions, stock markets, selected samples, time periods and differences between industries. Revision of past forecasts leads to forecast error. The revisions result from new information. On the other hand, some managers slowly revise their forecasts in responding to new information. Therefore, the purpose of this research is to investigate the r...

We analyze the risk characteristics and the valuation of assets in an economy in which the investment opportunity set is described by the real interest rate and the maximum Sharpe ratio. It is shown that, holding constant the beta of the underlying cash flow, the beta of a security is a function of the maturity of the cash flow. For parameter values estimated from U.S. data, the security beta i...