Date of Award
Spring 2026
Document Type
Dissertation
Degree Name
Doctor of Business Administration (DBA)
Committee Chair
Earl Godfrey
Abstract
Measures of liquidity are some of the most important financial ratios to analyze when measuring a firm’s overall financial health and its ability to pay both creditors and dividends. The US telecommunications industry is an industry that has become synonymous with dividends, mergers, and acquisitions, all of which are possible due to industry wide and firm specific liquidity. With the implementation of ASC 842 and the new standard of placing operational leases on the balance sheet, additional research may be warranted to determine the effect ASC 842 may have on firm liquidity. This study investigated whether there was evidence to suggest that preemptive measures were set in place by firm management to offset any potential liquidity changes. The data to measure the change in firm liquidity was collected using S&P Capital IQ and was examined using inferential statistical analysis through MANOVA with follow-up ANOVA in a post-facto study to determine if the relationship between firm liquidity and ASC 842 was statistically significant. The results concluded that there was no statistically significant evidence to support the notion that firm liquidity was impacted through the implementation of ASC 842. Recommendations for future research include expanding the studied industry to cover commercial farming, construction, and railroad industries and to determine any implications to firms’ dividend payouts.
Recommended Citation
Martin, Caleb J., "Lease Capitalization and Financial Flexibility: An Empirical Investigation of ASC 842’s Impact on Liquidity in the US Telecommunications Industry" (2026). Doctor of Business Administration Dissertations. 14.
https://digitalcommons.gardner-webb.edu/business-dissertations/14
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