Investment opportunities and cash holdings of firms: an empirical study on Korean firms

Koo, Jaewoon

doi:10.1080/00036846.2018.1545083

Cited by 8 publications

(10 citation statements)

References 28 publications

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“…Firms may prefer to use their cash to pay their debts, or they may regard short-term debt as cash and cash equivalents and benefit from external financing for liquidity management (Koo & Maeng, 2018;Pál & Ferrando, 2010). It is expected for the relationship between the change in cash holding and the change in non-cash working capital to be negative for both types of firms because working capital can be a substitute for cash.…”

Section: Methodsmentioning

confidence: 99%

“…Almeida ve diğerleri (2004) bulmuş oldukları sonuca göre finansal açıdan kısıtlı olmayan firmalar dışsal finansmana erişim sıkıntısı yaşamadığı için potansiyel karlı projeleri ertelemek zorunda değillerdir ve nakit akışlarına olan duyarlılılıkları daha azdır. Bu çalışmada bulunan sonuçlar ise (Azmat & Iqbal, 2017; Baptista e Silva, 2012; Erdogan, 2018;Koo & Maeng, 2018;Lin, 2007;Quader & Abdullah, 2016) ile benzerlik göstermektedir. Ayrıca finansal açıdan kısıtlı olmayan firmalar finansal açıdan kısıtlı olan firmalara göre daha yüksek bir katsayıya sahiptir (Erdogan, 2018;Pál & Ferrando, 2010).…”

Section: Bulgular Ve Tartişmaunclassified

“…She reveals that both constrained and unconstrained firms demonstrate CCFS although unconstrained firms tend to hold more cash than constrained ones. Koo and Maeng (2018) examine 898 Korean firms between 1999 and 2014. They cluster firms according to the size, degree of sales volatility, ownership structure, and business organization.…”

Section: Literature Reviewmentioning

confidence: 99%

“…First, since most of the academic articles on CCFS are about firms in developed markets, we consider emerging markets in the study. Second, studies in the literature analyze a single country's data, such as Turkey (Arslan et al 2006;Erdogan, 2018), Taiwan (Lin, 2007), South Korea (Koo & Maeng, 2018), and Vietnam (Tran, 2020a). In this study, we aim to contribute to the literature by including firm datasets from more countries.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Cash - Cash Flow Sensitivity: Evidence From Emerging Markets

Tan

Avcı

2022

Muhasebe Bilim Dünyası Dergisi

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This study analyzes cash-cash flow sensitivity by comparing financially constrained and unconstrained firms in eight markets. 486 manufacturing firms are examined between 2005 and 2018 using the Generalized Method of Moments. These firms are categorized based on size, age, and Size-Age, Sales-Age, and Kaplan and Zingales indices. We find that both constrained and unconstrained firms evince positive cash-cash flow sensitivity. Although unconstrained firms obtain external financing easily, they prefer to first use internally generated funds in accordance with the pecking order theory. The results also reveal that cash-cash flow sensitivity cannot be used to test financial constraints in emerging markets.

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Section: Methodsmentioning

confidence: 99%

Section: Bulgular Ve Tartişmaunclassified

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Cash - Cash Flow Sensitivity: Evidence From Emerging Markets

Tan

Avcı

2022

Muhasebe Bilim Dünyası Dergisi

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“…Furthermore, we find that financial leverage, asset tangibility and firm size are negatively correlated to corporate cash holdings. These results can be explained as firms with higher leverage, higher tangibility and larger size have better access to external funds, incur lower costs of external financing and thus have lower propensity to reserve cash (Koo and Maeng, 2019;Lei et al, 2018;Myers and Majluf, 1984). Besides, there is a negative effect of capital expenditure on cash holdings.…”

Section: Mbr 284mentioning

confidence: 96%

Uncertainty avoidance culture, cash holdings and financial crisis

Trần

2020

MBR

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Purpose This paper aims to investigate how the global financial crisis affects the relationship between uncertainty avoidance culture and corporate cash holdings. Design/methodology/approach This study develops a research model in which cash holdings ratio is a function of post-crisis period dummy, Hofstede’s cultural dimension of uncertainty avoidance, their interactive term and control variables. The research sample includes 188,264 observations from 26,509 firms incorporated in 44 countries between 2003 and 2016. Findings This study finds that the effect of uncertainty avoidance culture on firm cash holdings is stronger in the post-crisis period from 2008 to 2016. This effect is stronger for financially constrained firms. In addition, the research findings show that uncertainty avoidance culture is more effective in cash–cash flow sensitivity over the post-crisis period. Originality/value Prior studies show that uncertainty avoidance culture positively affects corporate cash reserves. However, the authors only examine the effect of uncertainty avoidance culture on cash holdings in a static environment. This paper investigates this effect under the impact of the global financial crisis – an exogenous shock.

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Corporate cash holdings in emerging markets

Diaw

2021

Borsa Istanbul Review

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Investment opportunities and cash holdings of firms: an empirical study on Korean firms

Cited by 8 publications

References 28 publications

Cash - Cash Flow Sensitivity: Evidence From Emerging Markets

Cash - Cash Flow Sensitivity: Evidence From Emerging Markets

Uncertainty avoidance culture, cash holdings and financial crisis

Corporate cash holdings in emerging markets

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