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SHIGEO TAKAMI
Department Department of Business Administration, Faculty of Business Administration Position Professor |
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| Language | English |
| Publication Date | 2016/05 |
| Type | |
| Peer Review | Peer reviewed |
| Title | Preserving and Exercising Financial Flexibility in the Global Financial Crisis Period: The Japanese Example |
| Contribution Type | |
| Journal | The Journal of Corporate Accounting & Finance |
| Journal Type | Another Country |
| Publisher | Wiley Periodicals, Inc. |
| Volume, Issue, Page | 24(4),pp.13-25 |
| Total page number | null |
| Details | This article examines whether Japanese firms replicate the DeAngelo and DeAngelo (D&D) model, which assumes that firms achieve financial flexibility by increasing their debt capacity or paying out large dividends and exercise it when abnormal cash shortfalls occur. The article analyzes frequency distributions and means across three net cash outlay states (extreme deficits, deficits, and surplus) using 10-year panel data on 1,555 Japanese firms.
It also conducts Tobit regression analyses based on the dynamic features of financial flexibility postulated by D&D. The results reveal that Japanese public firms did not effectively utilize financial flexibility to raise external funds in times of financial need, particularly during the global financial crisis sparked by the Lehman Brothers collapse in 2008. |
| DOI | DOI: 10.1002/jcaf.22156 |