Financial statement comparability and corporate cash holdings
This study examines the impact of financial statement comparability on corporate cash holdings. A greater degree of comparability lowers information acquisition costs, reduces the uncertainties associated with performance evaluation, and increases the overall quantity and quality of information avai...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Elsevier
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/59596 |
| _version_ | 1848760522893164544 |
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| author | Habib, A. Hasan, Mostafa Al-Hadi, Al-Hadi Ahmed |
| author_facet | Habib, A. Hasan, Mostafa Al-Hadi, Al-Hadi Ahmed |
| author_sort | Habib, A. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study examines the impact of financial statement comparability on corporate cash holdings. A greater degree of comparability lowers information acquisition costs, reduces the uncertainties associated with performance evaluation, and increases the overall quantity and quality of information available to corporate outsiders which, in turn, helps to ease the external financing constraints of the firm. Using a large US sample from 1981 to 2013, we find consistent evidence that financial statement comparability significantly reduces cash holdings of the firm. We also find that this relation is mediated by financing constraints, financial reporting quality and corporate governance. These findings are robust to alternative specification of comparability, cash holdings and to the alternative regression specifications and endogeneity tests. Our study contributes to the emerging research that stresses the importance of financial statement comparability. |
| first_indexed | 2025-11-14T10:17:07Z |
| format | Journal Article |
| id | curtin-20.500.11937-59596 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:17:07Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-595962018-03-15T06:46:23Z Financial statement comparability and corporate cash holdings Habib, A. Hasan, Mostafa Al-Hadi, Al-Hadi Ahmed This study examines the impact of financial statement comparability on corporate cash holdings. A greater degree of comparability lowers information acquisition costs, reduces the uncertainties associated with performance evaluation, and increases the overall quantity and quality of information available to corporate outsiders which, in turn, helps to ease the external financing constraints of the firm. Using a large US sample from 1981 to 2013, we find consistent evidence that financial statement comparability significantly reduces cash holdings of the firm. We also find that this relation is mediated by financing constraints, financial reporting quality and corporate governance. These findings are robust to alternative specification of comparability, cash holdings and to the alternative regression specifications and endogeneity tests. Our study contributes to the emerging research that stresses the importance of financial statement comparability. 2017 Journal Article http://hdl.handle.net/20.500.11937/59596 10.1016/j.jcae.2017.10.001 Elsevier restricted |
| spellingShingle | Habib, A. Hasan, Mostafa Al-Hadi, Al-Hadi Ahmed Financial statement comparability and corporate cash holdings |
| title | Financial statement comparability and corporate cash holdings |
| title_full | Financial statement comparability and corporate cash holdings |
| title_fullStr | Financial statement comparability and corporate cash holdings |
| title_full_unstemmed | Financial statement comparability and corporate cash holdings |
| title_short | Financial statement comparability and corporate cash holdings |
| title_sort | financial statement comparability and corporate cash holdings |
| url | http://hdl.handle.net/20.500.11937/59596 |