From words to finances : unraveling the negative net debt-languages nexus

dc.contributor.authorKadzima, Marvelous
dc.contributor.authorMachokoto, Michael
dc.contributor.authorLemma, Tesfaye T.
dc.contributor.emailmarvelous.kadzima@up.ac.zaen_US
dc.date.accessioned2024-11-29T10:14:23Z
dc.date.issued2024-08
dc.descriptionDATA AVAILABILITY : The firm-level datasets that support the empirical findings of this study are available from Thomson Reuters Datastream. Restrictions may apply to the availability of these datasets, which were used under license. Macroeconomic data is publicly available from the World Bank. Data for indicators of financial development and institutional quality is available from the IMF and previous studies.en_US
dc.description.abstractUsing an international dataset, we find that firms in countries with languages that lack a clear distinction between present and future tenses, leading to weaker future time references, are more likely to adopt negative net debt. This conservative and non-standard financing policy is notably pronounced among financially constrained firms, those with weaker governance, and those operating in highly competitive industries. Interestingly, this increase in negative net debt with weak-FTR is higher in countries with more established institutions, financial systems, and legal frameworks, which typically exhibit a lower prevalence of financial conservatism and a weaker influence of informal institutions on corporate decisions.en_US
dc.description.departmentFinancial Managementen_US
dc.description.embargo2026-06-05
dc.description.librarianhj2024en_US
dc.description.sdgSDG-01:No povertyen_US
dc.description.urihttps://www.elsevier.com/locate/frlen_US
dc.identifier.citationKadzima, M., Machokoto, M. & Lemma, T.T. 2024, 'From words to finances : unraveling the negative net debt-languages nexus', Finance Research Letters, vol. 66, art. 105665, pp. 1-10, doi : 10.1016/j.frl.2024.105665.en_US
dc.identifier.issn1544-6123 (print)
dc.identifier.issn1544-6131 (online)
dc.identifier.other10.1016/j.frl.2024.105665
dc.identifier.urihttp://hdl.handle.net/2263/99694
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.rights© 2024 Elsevier Inc. All rights are reserved, including those for text and data mining, AI training, and similar technologies. Notice : this is the author’s version of a work that was accepted for publication in Finance Research Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. A definitive version was subsequently published in Finance Research Letters, vol. 66, art. 105665, pp. 1-10, 2024, doi : 10.1016/j.frl.2024.105665.en_US
dc.subjectNegative net debten_US
dc.subjectLanguagesen_US
dc.subjectInstitutionsen_US
dc.subjectEmerging marketsen_US
dc.subjectFuture time references (FTR)en_US
dc.subjectSDG-01: No povertyen_US
dc.titleFrom words to finances : unraveling the negative net debt-languages nexusen_US
dc.typePostprint Articleen_US

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