In light of the recent regulatory changes and the increase in cash reserves after the financial crisis of 2007-08, we examine the determinants of cash levels and the effects of excess cash on bank’s business policies, for both listed and unlisted banks. As for the determinants, we find that larger, more profitable, more capitalized, and more diversified banks hold less cash. As for bank’s polic...

Traditional models of capital budgeting including taxes are based on deterministic tax rates and tax bases. In reality, however, there are multiple sources of tax uncertainty. Tax reforms induce frequent changes in both tax rates and tax bases, making future taxation of investments a stochastic process. Fiscal authorities and tax courts create additional tax uncertainty by interpreting current ...

In the real investments literature, the investigated cash flow is assumed to follow some known stochastic process (e.g. Brownian motion) and the criterion to decide between investments is the discounted utility of their cash flows. However, for most new investments the investor may be ambiguous about the representation of uncertainty. In order to take such ambiguity into account, we refer to a ...

Parental investments in children can take many forms. It can involve time investments during childhood and adolescence that aid child development, educational investments that improve school quality and hence educational outcomes and cash investments in the form of transfers and bequests. The aim of this paper is to investigate the quantitative significance of these types of investments in driv...

We estimate firms’ cash flow sensitivity of cash to empirically test how the financial system’s structure and activity level influence their financial constraints. For this purpose we merge Almeida et al. (2004), a path-breaking design for evaluating a firm’s financial constraints, with Levine (2002), who paved the way for comparative analysis of financial systems around the world. We conjectur...

Although the practical importance of investment analysis in long-term energy investments is well understood, choosing the proper method has always been a dilemma. In this regard, classic evaluation methods, with a history of almost a century, are mostly favored, but using them in the valuation of long-lasting energy projects has particular shortcomings, nevertheless. The drawbacks mainly stem f...

Purpose- In 2008 China issued the Measures for Disclosure of Environmental Information. Using introduction this environmental policy, paper examines how information disclosure quality affects a firm's access to capital markets. particular, relationship is investigated between and investment-cash flow sensitivity, measure financial constraints, before after implementation policy. Methodology- Th...