Stock liquidity and corporate cash holdings

Hu, Yi; Li, Yong; Zeng, Jianyu

doi:10.1016/j.frl.2018.06.018

Cited by 24 publications

(29 citation statements)

References 7 publications

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“…Further (Ferriera & Vilela 2004) determine that rising of fund is more complicated for smaller ones and as they cannot access the capital market easily. This estimation is consistent with Chauhan et al (2018), Hu et al (2018), Nyborg & Wang (2014), Bashir (2014) and Opler (1999).…”

Section: Resultssupporting

confidence: 89%

Determinants of Corporate Cash Holdings in Hospitality Sector of France, Spain and United States of America

Mumtaz

Ahmad

Shah

2020

GER

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This study determines the effect of parameters used for cash holding in hospitality sector (HS) of target countries i-e France, Spain and United State of America for the period of 14 years (2005-2018). The parameters consist of firm size, leverage, capital expenditure, growth opportunity, liquidity, cash flow, cash flow volatility, asset intangibility, dividend payments and stock exchange. Dynamic panel data is employed for empirical estimation i-e Generalized Method of Moments (GMM). System GMM model estimation reveals that leverage, cash flow volatility and asset intangibility influence cash holdings positively while size, capital expenditure, growth opportunities and cash flow affect cash holdings negatively.

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Section: Resultssupporting

confidence: 89%

Determinants of Corporate Cash Holdings in Hospitality Sector of France, Spain and United States of America

Mumtaz

Ahmad

Shah

2020

GER

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“…This study contributes to the literature in two key areas. First, previous literature studies corporate cash holding determinants such as corporate governance (Dittmar et al , 2003; Harford et al , 2008), accruals quality (García‐Teruel et al , 2009), corporate diversification (Duchin, 2010), earnings quality (Sun et al , 2012), political connections (Hill et al , 2014), national culture (Chen et al , 2015), information asymmetry (Chung et al , 2015), technology spillovers (Qiu and Wan, 2015) and stock liquidity (Hu et al , 2019), among many others. Our study shows that IIQ is an important determinant of corporate cash holdings, thus complementing the existing literature and providing a new angle for helping managers make efficient cash holding decisions.…”

Section: Introductionmentioning

confidence: 99%

Does internal information quality impact corporate cash holdings? Evidence from China

Xiong

Zheng

et al. 2020

Accounting & Finance

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This paper examines the impact of internal information quality (IIQ) on corporate cash holdings in China. Employing two widely used IIQ measures (i.e., the earnings announcement speed and the absence of financial restatements), we show a significant and negative association between IIQ and corporate cash holdings. This negative relation is concentrated among complex firms (i.e., firms with more business segments), non-state-owned firms, and firms with poor corporate governance. Our findings are valid after we consider endogeneity issues. This paper suggests that the quality of the internal information environment plays an important role in influencing firms' cash holding decisions.

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“…Religiosity is an ethical social norm and a philosophy of prosperity that is associated with fair practice, empathy, and accountability toward social well-being (Callen & Fang, 2015). Recent studies consider religious risk-taking attitudes as an important measurable cultural factor to define a firm's corporate behaviors (Hu, Li, & Zeng, 2019). Firms exposed to higher religious risk-taking preferences usually hold more cash to finance value-increasing investment and alleviate financial constraints (Lee, 2017).…”

Section: Religiosity and Cash Holdings-a Precautionary Motivementioning

confidence: 99%

“…Local culture plays an important role in preventing agency issues associated with corporate financial policies, as firms located in more religious areas tend to possess better corporate governance and higher business ethics (Hu, Li, & Zeng, 2019;Hu, Lian, & Zhou, 2019). Religious social norms not only foster moral judgment and promote ethical behavior in organizations, but also improve the corporate image and increase the insurance value of CER against stakeholders' reactions to negative events (Callen & Fang, 2015;Zolotoy, O'Sullivan, & Chen, 2019).…”

Section: Religiosity Cer and Cash Holdings-interaction Effect Of Cer And Local Risk-taking Behavior On Cash Holdingsmentioning

confidence: 99%

The effect of corporate environmental responsibility and religiosity on corporate cash holding decisions and profitability: Evidence from the United States' policies for sustainable development

Tsendsuren

Yadav

Han

et al. 2021

Sustainable Development

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We use religious background as a proxy for local risk-taking attitudes and investigate whether geographical variation in religion affects corporate environmental responsibility (CER) with regards to corporate cash policies and profitability. We conjecture that the presence of environmentally conscious firms would be higher in areas with more Catholics relative to Protestants. Study data comprises of the largest publicly traded U.S.-listed firms of Newsweek's green rankings of 2015-2016. We use green scores and the concentration of Catholic to Protestant population ratio as proxies for CER and religiosity, respectively. We provide robust evidence that corporate environmental practices attenuate the demand for precautionary cash reserves to protect firms from unforeseeable risks. Furthermore, environmentally conscious firms located in high risk-taking areas gain financial stability and improve profitability, strengthening their CER. The findings provide contributions to risk management literature and document the importance of firms' efforts to harmonize social behavior for sustainable financial policies.

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Stock liquidity and corporate cash holdings

Cited by 24 publications

References 7 publications

Determinants of Corporate Cash Holdings in Hospitality Sector of France, Spain and United States of America

Determinants of Corporate Cash Holdings in Hospitality Sector of France, Spain and United States of America

Does internal information quality impact corporate cash holdings? Evidence from China

The effect of corporate environmental responsibility and religiosity on corporate cash holding decisions and profitability: Evidence from the United States' policies for sustainable development

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