Bank Power and Cash Holdings: Evidence from Japan

Pinkowitz, Lee; Williamson, Rohan

doi:10.1093/rfs/14.4.1059

Cited by 248 publications

(147 citation statements)

References 20 publications

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“…The impact of institutional factors on the relationship between cash holdings and debt is also examined in the cross-country study of Pinkowitz and Williamson (2001). Using industrial firms from the US, Germany and Japan, they find that Japanese firms hold larger cash balances than their counterparts.…”

Section: Determinants Of Firms' Demand For Cashmentioning

confidence: 99%

Corporate cash holdings: Causes and consequences

Amess

Banerji

Lampousis

2015

International Review of Financial Analysis

127

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The considerable growth in corporate cash holdings around the world has prompted scholarly interest. Consequently, there is now a large academic literature examining cash holdings and their impact on corporate outcomes and firm values. This article reviews and synthesizes the literature to offer insight into two primary motives to hold cash: precautionary and agency. We first present a stylized model that explores the trade-off in holding cash between these two motives and then examine empirical studies to determine how existing theories are supported by evidence using data from a variety of countries. In addition, we examine the effectiveness of a variety of corporate governance devices in curtailing cash holdings and also the extent to which these devices offer investors' confidence that cash will not be wasted. Finally, we discuss methodological and measurement issues associated with empirical cash holdings studies. JEL classification: G30; G32

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Section: Determinants Of Firms' Demand For Cashmentioning

confidence: 99%

Corporate cash holdings: Causes and consequences

Amess

Banerji

Lampousis

2015

International Review of Financial Analysis

127

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“…Like, Opler et al (1999), Ozkan and Ozkan (2004), Bates et al (2009), Kim et al(1998), Pinkowitz and Williamson (2001) and Hardin et al (2009), we examine the impact of activity sectors on firms' cash holdings. We consider five activity sectors: the manufacturing sector, service sector, trade sector, agriculture and mining sector and real estate sector.…”

Section: Cash Holdings and The Effect Of Activity Sectorsmentioning

confidence: 99%

Do Firms' Cash Holdings Differ Between Asian Countries? Theory and Empirical Validation

Hatem

2017

BER

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This work identifies the factors that explain firms cash holdings (Opler, Pinkowitz, Stulz, and Williamson, 1999). Empirical validation was calculated on two Asian countries: Chine and Japan. To measure of firms cash holdings, we use, alternatively, two measures: Cash ratio approximated as the ratio of cash and equivalents of cash to total assets, and Quick ratio calculated as cash and equivalents of cash to current liabilities. Our samples contain 119 firms from each country for a period of 8 years from 2006 to 2013. Descriptive statistics show that firms from Chine have higher debt and profitability ratios. However, firms in Japan are older than firms in Chine with a mean age of 38,357 years with a minimum of 4 years and a maximum of 121 years. the results report many differences in cash holdings policy between the two countries. Contrary to our hypothesis, firms in China that have higher capital structure ratios have more cash. We concluded to a difference in the effect of firm size and number of employees in the two countries. Older firms in Japan have more cash. Finally, we concluded to a negative and a statistically significant effect of growth opportunities for firms in Japan and China. Firm performance positively influence cash in the two countries.

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“…If the financial management decision should be done in context of the future free cash flows generated by the firm in the risk and uncertainty context, then the truth is that the risk is higher, the working capital levels have a higher utility (Polak 2009;Uzik and Šoltés 2009;Belas et al 2012). There exist very few firms not suffering from that risk, and they do not suffer in the same way always (Opler et al 1999;Pinkowitz and Williamson 2001). The firms' sensitivity on risk is different, and it depends on the factors connected with its business environment (Ozkan and Ozkan 2004;Kulhanek 2012;Hudson and Orviska 2013).…”

Section: Original Papermentioning

confidence: 99%

Full operating cycle influence on the food and beverages processing firms characteristics

Michalski¹

2016

AGR ECON-CZECH

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External factors resulting from the economic situation surrounding the company interact with the operating cycle of the overall enterprise operational risk which is reflected in the level of the cash held. At the core of the research hypothesis of the paper, there is the belief that the level of cash and cash management policies in the enterprise in an integrated manner with other elements resulting from the operating cycle contribute to moderating the risk of the enterprise and that it can be shown using empirical data from the companies operating effectively in the practice business. The full operation cycle is connected with a higher probability of imperfection in the realization business cycle. The aim of the management of cash is to define the resources of cash in the firm at such a level that it contributes to the highest increase in the owners' property. In other words, it is about bringing the firm's held liquid resources to a level that is optimal from the point of view of the balanced costs of maintaining liquidity and the total cost of holding a too low level of resources. The type and size of these costs is partly dependent on the financial strategy conducted by the firm (Michalski 2014b). The relationship between the level of cash and other current assets, such as the previously discussed inventory and accounts receivable, depends on the specificity of the firm. Firms operating in a situation of high uncertainty and risk will have relatively higher cash resources -compared to the level of other current assets. Another element that may affect the growth of the average level of cash in the enterprise and increase their relative share in the structure of current assets is the amount of the costs of transactions and the cost of capital. Generally, it is recommended that the level of each of these current assets like cash, inventories, and receivables, be analysed separately. Connections between them are then taken into account when designing the cash poll. The approach to cash management in enterprises is different from the approach taken in large companies. As in most cases, when the owner controls all matters pertaining to the cash in the enterprise, it is possible for the owner to flexibly adapt the cash management models to a much greater extent than in the case of companies in which the knowledge of the individual areas related to the inflows and outflows of cash is distributed among many employees, or even between different branches of the enterprise. Based on the observations of the current inflows and outflows, an enterprise can classify its situation in the cash management Full operating cycle influence on the food and beverages processing firms characteristics Grzegorz MICHALSKI Department of Corporate Financial Management, Faculty of Engineering and Economics, Wroclaw University of Economics, Wroclaw, PolandAbstract: Th e aim of the study is to determine the rules governing the modern cash management in food and beverages processing enterprises with a full operating cycle with a particular em...

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Bank Power and Cash Holdings: Evidence from Japan

Cited by 248 publications

References 20 publications

Corporate cash holdings: Causes and consequences

Corporate cash holdings: Causes and consequences

Do Firms' Cash Holdings Differ Between Asian Countries? Theory and Empirical Validation

Full operating cycle influence on the food and beverages processing firms characteristics

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