Sentence examples for constrained firm from inspiring English sources

In that sense, outside investors may recognize tax management as a value-increasing activity, especially for a financially constrained firm.

The cash savings attributed to tax avoidance help lower the default risk of a financially constrained firm and thereby decrease its future crash risk.

Accordingly, we predict that managers in a well-governed, financially constrained firm are less likely to withhold bad news, and so, their firm's future crash risk tends to be lower.

A financially constrained firm will find it difficult to fund positive net present value projects due to the scarcity of internal funds and costly external finance.

However, economic theory can only support the idea that a constrained firm is likely to choose a rate of investment below its optimal rate.

The cash flow sensitivity will decrease with the increase in the tangibility of assets to the firm for the financially constrained firm, that is, tangibility will result in easing the financial constraints on the firm.

Constrained firms and their investors stand to benefit from improving their governance practices to mitigate the negative impacts of both tax management and tax sheltering.

Financial variables affects constrained firms much more than unconstrained firms.

Cleary (1999) Financial status index Ordinary least square regression and multiple discriminant analysis Least constrained firms are more sensitive to cash flow sensitivity to investment.

As a result, the economy lose some of the potential benefits of promising projects and the constraint of credits and credit constrained firms cannot contribute to employment generation and poverty alleviation.

Earlier micro-founded work by Reinikka and Svensson (2002) suggested that electricity constrained firms may make suboptimal investments for example in own electricity generation often at the expense of productive investment.