Abstract

http://ssrn.com/abstract=1342780
 
 

References (38)



 


 



The Determinants and Marginal Value of Corporate Cash Holdings: Financial Constraints versus Corporate Governance


Wenchien Liu


Chung Yuan Christian University - Department of Finance

Yuanchen Chang


National Chengchi University - College of Commerce

February 13, 2009


Abstract:     
This article compares the influence of financial constraint and corporate governance on corporate cash holdings of publicly traded U.S. firms in the 1990-2006 periods. We find that firms with good governance hold more cash than firms with poor governance regardless of their financial constraints. Further, we find that cash holdings of financially constrained firms with good corporate governance are the highest. The impact of corporate governance on firm value is strong only when firms are financially constrained. Our results indicate that financial constraint is a more important determinant than corporate governance for corporate cash holdings.

Number of Pages in PDF File: 44

Keywords: Corporate Cash Holdings, Corporate Governance, Financial Constraints

JEL Classification: G30, G32, G34

working papers series


Download This Paper

Date posted: February 16, 2009  

Suggested Citation

Liu, Wenchien and Chang, Yuanchen, The Determinants and Marginal Value of Corporate Cash Holdings: Financial Constraints versus Corporate Governance (February 13, 2009). Available at SSRN: http://ssrn.com/abstract=1342780 or http://dx.doi.org/10.2139/ssrn.1342780

Contact Information

Wenchien Liu
Chung Yuan Christian University - Department of Finance ( email )
200 Chung Pei Rd
Chung Li City, 32023
Taiwan
Yuanchen Chang (Contact Author)
National Chengchi University - College of Commerce ( email )
Taiwan
886229393091-81102 (Phone)
886229393394 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 905
Downloads: 259
Download Rank: 64,619
References:  38

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.531 seconds