The Determinants of Corporate Cash Management Policy: Evidence from around the World
We examine the determinants of corporate cash management policy across a broad sample of international firms. We find that firms in countries with strong legal protection of minority investors are more likely to decrease (increase) their cash holdings in response to an increase in cash flow (stock price) than are firms in countries with weak legal protection. In addition, financially constrained firms display higher sensitivities of cash to both cash flow and stock prices than do financially unconstrained firms. The results are robust to alternative specifications. Our findings highlight the importance of both country-level institutional factors and firm-level financial constraints in managers’ corporate cash management policies.
Legal protection financial constraints cash management policy
Yuanto Kusnadi K.C. John Wei
City University of Hong Kong Hong Kong University of Science and Technology
国际会议
广州
英文
1-41
2009-07-07（万方平台首次上网日期，不代表论文的发表时间）