A study on relationship between cash opportunity cost and financial flexibility

This study evaluated the relationship between cost and performance yield investment opportunities, cash and financial flexibility bank pays. For this study, a sample of 94 companies from companies that are part of corporate clients BSI was selected using random sampling technique. In addition, to me...

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Main Authors: Hassan Ghodrati, Syed Ali Lajevardi, Abbas Gaeini
Format: Article
Language:English
Published: Growing Science 2014-07-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol4/msl_2014_173.pdf
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author Hassan Ghodrati
Syed Ali Lajevardi
Abbas Gaeini
author_facet Hassan Ghodrati
Syed Ali Lajevardi
Abbas Gaeini
author_sort Hassan Ghodrati
collection DOAJ
description This study evaluated the relationship between cost and performance yield investment opportunities, cash and financial flexibility bank pays. For this study, a sample of 94 companies from companies that are part of corporate clients BSI was selected using random sampling technique. In addition, to measure the performance, three measures of economic value added, return on assets and return on equity were used. The study evaluated the relationship between cash and the opportunity cost efficiency as well as financial flexibility to invest in BSI over the period 2007-2012. Statistical methods used in this study were panel data regression. Four hypotheses were proposed to achieve the goals and the results showed that the opportunity cost of holding cash investments with financial flexibility and efficiency were inversely associated with financial performance.
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series Management Science Letters
spelling doaj-art-e1d56e30e8ea4d57a3618f196bda34742025-08-20T03:20:59ZengGrowing ScienceManagement Science Letters1923-29341923-93432014-07-01471467147610.5267/j.msl.2014.6.017A study on relationship between cash opportunity cost and financial flexibilityHassan GhodratiSyed Ali LajevardiAbbas GaeiniThis study evaluated the relationship between cost and performance yield investment opportunities, cash and financial flexibility bank pays. For this study, a sample of 94 companies from companies that are part of corporate clients BSI was selected using random sampling technique. In addition, to measure the performance, three measures of economic value added, return on assets and return on equity were used. The study evaluated the relationship between cash and the opportunity cost efficiency as well as financial flexibility to invest in BSI over the period 2007-2012. Statistical methods used in this study were panel data regression. Four hypotheses were proposed to achieve the goals and the results showed that the opportunity cost of holding cash investments with financial flexibility and efficiency were inversely associated with financial performance.http://www.growingscience.com/msl/Vol4/msl_2014_173.pdfOpportunity cost of holding cashBank performanceEfficiency investmentsFinancial flexibilityBSI
spellingShingle Hassan Ghodrati
Syed Ali Lajevardi
Abbas Gaeini
A study on relationship between cash opportunity cost and financial flexibility
Management Science Letters
Opportunity cost of holding cash
Bank performance
Efficiency investments
Financial flexibility
BSI
title A study on relationship between cash opportunity cost and financial flexibility
title_full A study on relationship between cash opportunity cost and financial flexibility
title_fullStr A study on relationship between cash opportunity cost and financial flexibility
title_full_unstemmed A study on relationship between cash opportunity cost and financial flexibility
title_short A study on relationship between cash opportunity cost and financial flexibility
title_sort study on relationship between cash opportunity cost and financial flexibility
topic Opportunity cost of holding cash
Bank performance
Efficiency investments
Financial flexibility
BSI
url http://www.growingscience.com/msl/Vol4/msl_2014_173.pdf
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AT abbasgaeini astudyonrelationshipbetweencashopportunitycostandfinancialflexibility
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AT syedalilajevardi studyonrelationshipbetweencashopportunitycostandfinancialflexibility
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