Financial Aspects of Korean Chaebol Firms in terms of Trend of Cash Holdings and Type of a Domestic Bourse

Abstract

This study addresses one of the curent issues in modern finance, which investigates financial profile on the levels of the chaebol firms' cash hoardings in the domestic capital market. Iit may be imperative to search for robust and consistent financial determinants of cash holdings as well as identifying any changes or trend of the determinants affecting the corporate cash reserves in the post-era of the global financial turmoil, considering that interest parties at the government and corporate levels, still seem to have a controversy or debate on excess cash savings. Two hypotheses were postulated and empirically tested for the chaebol firms in the study, such as any transitional changes of the relevant factors on cash holdings and unique attributes of financial factors discriminating between the different type of domestic stock markets.

Categorical Financial Analyses on the Level of Corporate Cash Reserves for the Korean Chaebol Firms in the Post-Era of the Global Financial Crisis

“…Another prominent factor affecting corporate cash retention rate was identified as AGENCY1 which showed its negative linkage to the level of cash holdings. This was consistent with the outcome obtained from [11] and [13].…”

“…Among the total number of twelve explanatory variables which had also been employed in the preceding study of [11], four or five predictors showed their statistically discriminating power at the …”