Economic policy uncertainty, value of cash and financial crisis

Trần, Quốc Trung

doi:10.1108/ejmbe-10-2020-0292

Cited by 2 publications

(2 citation statements)

References 69 publications

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“…Due to their large share positions in investee firms, blockholders have more concerns about the long-term value of their investee firms (Asensio-López et al ., 2018) and encourage their investee firm to undertake less risky investments (Abou-El-Sood, 2017). Building on the precautionary motive of cash, prior studies argued for the importance of cash holdings in enhancing firms’ competition resistance (Klasa et al ., 2009; Kim and Bettis, 2014), operating performance (Oler and Picconi, 2014) and eventually firm value (Martínez-Sola et al ., 2013), especially for well-governed firms (Dittmar and Mahrt-Smith, 2007; Harford et al ., 2008), firms in “value-creation” contexts (Deb et al ., 2017) and firms that are financially constrained or experiencing distress and uncertainty (Denis and Sibilkov, 2010; Im et al ., 2017; Tran, 2023). Based on the precautionary motive, risk-averse shareholders would like managers to hold more cash to overcome the negative effect of the lack of cash.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Blockholder ownership and corporate cash holdings: evidence from European firms

Alomran

2023

IJMF

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PurposeThis study aims to investigate the impact of ownership by large shareholders (blockholders) on corporate cash holdings. The study further investigates heterogeneity in the relationship between blockholder ownership and corporate cash holdings.Design/methodology/approachBuilding on the precautionary and agency motives of corporate cash holdings, the study focuses on publicly listed firms from 22 European countries for the period from 2006 to 2015. Multiple pooled ordinary least square and fixed effects regression models are employed to examine the relationship between blockholder ownership and firms’ cash holdings.FindingsThis study documents a positive relationship between blockholder ownership and corporate cash holdings which indicates the role of blockholders in influencing firms’ cash holdings policies. However, further analyses show that the effect of blockholding on cash holdings depends on the type of blockholder. While the relationship is still positive between cash holdings and ownership by strategic blockholders, it turns negative for the ownership by institutional blockholders.Research limitations/implicationsThis study provides evidence for the important role played by firms’ ownership structures, and especially blockholding, in shaping firms’ cash holdings decisions. The findings are therefore of great value for investors, firms’ management and board and policy makers.Originality/valueThis paper contributes to the literature by providing an explanation of the contradictory results documented in the literature on the impact of blockholders on corporate cash holdings. This study, to the best of the author’s knowledge, is the first to examine the effect of blockholder ownership on cash holdings by distinguishing between different types of blockholder.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Blockholder ownership and corporate cash holdings: evidence from European firms

Alomran

2023

IJMF

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“…Considering contribution in terms of the number of publications, Tran, Q.T. affiliated with Foreign Trade University has the highest number of publications in the domain of cash holdings based on Scopus, with 10 total publications (to mention a few most popular; (Thi et al, 2021;Tran, 2020Tran, , 2021 Campello, M., & Weisbach, M. S. (2004). The cash flow sensitivity of cash.…”

Section: F Authorship and Co-authorship Analysis Most Productive Authorsmentioning

confidence: 99%

Global Research of Future Trends and Development in Cash Holding: A Bibliometric View

Shafiq¹,

Selamat²,

Nor³

et al. 2022

IJARAFMS

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Cash holdings are becoming a growing issue for worldwide scholars in finance to understand the importance of the strategic approach of corporate cash policy of cash reserves. In practice, firms have faced challenges in adopting an appropriate corporate cash holdings policy. It would be appropriate to study the notions of cash holding (CH) to explore suitable strategies to overcome the inadequacy of financial policy of cash reserves in the financial system worldwide. Thus, this paper aims to conduct a bibliometric analysis and fill this literature gap by identifying and evaluating the current status and developing trends of the cash holdings domain to provide meaningful insights and assist in further discussion. Bibliometric studies have proven to be beneficial in helping researchers better exploring the current research trends in a particular field of research. From Scopus database, this study identifies the knowledge evolution trend in the field of cash reserves or cash holdings, where 1,073 published articles from year 1971 to 2022 were reported. The current study's findings demonstrate that the number of publications in the domain of cash holdings has intensified in the past few years. The results also identify that Economics, Econometrics, and Finance were the more popular subject categories in the field of cash holdings from the past few decades. In terms of keyword analysis, the most frequently used keyword by authors associated with cash holdings are corporate governance and financial constraints. Moreover, co-authorship with researchers finds that most collaboration has taken place among United States, China, and the United Kingdom. Finally, citation analysis reveals the Journal of Corporate Finance dominates this field of research. Future strings of research should focus on the cash holdings and financial constraints, investment and external drivers that have an effect on cash holdings.

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Economic policy uncertainty, value of cash and financial crisis

Cited by 2 publications

References 69 publications

Blockholder ownership and corporate cash holdings: evidence from European firms

Blockholder ownership and corporate cash holdings: evidence from European firms

Global Research of Future Trends and Development in Cash Holding: A Bibliometric View

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