Persistent Link:
http://hdl.handle.net/10150/195862
Title:
Cash Flow Management and the Cost of Debt
Author:
Geile, Amy Lynn
Issue Date:
2007
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
I decompose operating cash flow into two components, unmanaged operating cash flow and managed operating cash flow, to examine the association between managed operating cash flow and the cost of debt. For all firms the results suggest the cost of debt has a significant negative association with both components of operating cash flow, however, the managed component is less negative. Also, when firms are likely to engage in cash flow management and bondholders have increased incentives to scrutinize firm information, the bond market positively prices managed operating cash flow information. Specifically, my findings report a positive association between managed operating cash flows and the cost of debt when firms use cash flow management to meet the zero operating cash flow benchmark. Also, I find a more pronounced positive association between managed operating cash flows for a group of distressed firms.
Type:
text; Electronic Dissertation
Degree Name:
PhD
Degree Level:
doctoral
Degree Program:
Accounting; Graduate College
Degree Grantor:
University of Arizona
Advisor:
Dhaliwal, Dan S
Committee Chair:
Dhaliwal, Dan S

Full metadata record

DC FieldValue Language
dc.language.isoENen_US
dc.titleCash Flow Management and the Cost of Debten_US
dc.creatorGeile, Amy Lynnen_US
dc.contributor.authorGeile, Amy Lynnen_US
dc.date.issued2007en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractI decompose operating cash flow into two components, unmanaged operating cash flow and managed operating cash flow, to examine the association between managed operating cash flow and the cost of debt. For all firms the results suggest the cost of debt has a significant negative association with both components of operating cash flow, however, the managed component is less negative. Also, when firms are likely to engage in cash flow management and bondholders have increased incentives to scrutinize firm information, the bond market positively prices managed operating cash flow information. Specifically, my findings report a positive association between managed operating cash flows and the cost of debt when firms use cash flow management to meet the zero operating cash flow benchmark. Also, I find a more pronounced positive association between managed operating cash flows for a group of distressed firms.en_US
dc.typetexten_US
dc.typeElectronic Dissertationen_US
thesis.degree.namePhDen_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineAccountingen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorDhaliwal, Dan Sen_US
dc.contributor.chairDhaliwal, Dan Sen_US
dc.contributor.committeememberTrombley, Mark A.en_US
dc.contributor.committeememberSchwartz, William C.en_US
dc.contributor.committeememberDyl, Edward A.en_US
dc.identifier.proquest2053en_US
dc.identifier.oclc659747132en_US
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