Debt capacity, cash holdings and financial constraints

Title	Debt capacity, cash holdings and financial constraints
Creator	周冠男 Chou, Robin K.;Lu, Chien-Lin;Chen, Hsuan-Chi;Lin, Chih-Yung
Contributor	財管系
Key Words	cash holdings; debt capacity; debt structure; financial constraints; leverage deviation
Date	2023-12
Date Issued	26-Mar-2024 15:24:03 (UTC+8)
Summary	In this study, we explore the relationship among debt capacity, cash holdings and financial constraints by using the deviation in leverage as a proxy for debt capacity. Our findings show a positive relationship between cash holdings and debt capacity. Furthermore, financially constrained firms benefit more from holding cash that leads to larger increases in debt capacity and easier access to bank loans and credit lines by reducing the heterogeneous beliefs of creditors. Our results indicate that cash holdings complement debt capacity for financially constrained firms.
Relation	Journal of Business Finance and Accounting
Type	article
DOI	https://doi.org/10.1111/jbfa.12771

dc.contributor	財管系
dc.creator (作者)	周冠男
dc.creator (作者)	Chou, Robin K.;Lu, Chien-Lin;Chen, Hsuan-Chi;Lin, Chih-Yung
dc.date (日期)	2023-12
dc.date.accessioned	26-Mar-2024 15:24:03 (UTC+8)	-
dc.date.available	26-Mar-2024 15:24:03 (UTC+8)	-
dc.date.issued (上傳時間)	26-Mar-2024 15:24:03 (UTC+8)	-
dc.identifier.uri (URI)	https://nccur.lib.nccu.edu.tw/handle/140.119/150566	-
dc.description.abstract (摘要)	In this study, we explore the relationship among debt capacity, cash holdings and financial constraints by using the deviation in leverage as a proxy for debt capacity. Our findings show a positive relationship between cash holdings and debt capacity. Furthermore, financially constrained firms benefit more from holding cash that leads to larger increases in debt capacity and easier access to bank loans and credit lines by reducing the heterogeneous beliefs of creditors. Our results indicate that cash holdings complement debt capacity for financially constrained firms.
dc.format.extent	98 bytes	-
dc.format.mimetype	text/html	-
dc.relation (關聯)	Journal of Business Finance and Accounting
dc.subject (關鍵詞)	cash holdings; debt capacity; debt structure; financial constraints; leverage deviation
dc.title (題名)	Debt capacity, cash holdings and financial constraints
dc.type (資料類型)	article
dc.identifier.doi (DOI)	10.1111/jbfa.12771
dc.doi.uri (DOI)	https://doi.org/10.1111/jbfa.12771