Cash holdings are becoming a growing issue for worldwide scholars in finance to understand the importance of strategic approach corporate cash policy reserves. In practice, firms have faced challenges adopting an appropriate policy. It would be study notions holding (CH) explore suitable strategies overcome inadequacy financial reserves system worldwide. Thus, this paper aims conduct bibliometr...

We study the responses of Chinese public firm chairpersons to their perceptions bad luck pertaining zodiac year. find that these increase managers' sense risk and lead them corporate cash holdings, even though actual underlying remains unchanged. The effect is temporary begins at end quarter prior commencement When year has passed, level perceived decreases bias disappears. distortion between s...

Academics, politicians, and journalists are often highly critical of U.S. firms for holding too much cash. Cash holdings are stockpiled free-cash flow and incur substantial opportunity costs from the perspectives of economics. However, behavioral theory highlights the benefits of cash holdings as fungible slack resources facilitating adaptive advantages. We use the countervailing forces embodie...

Exploiting the 2014 Environmental Protection Law (EPL) in China as quasi-natural experiments, we adopt a difference-in-differences approach to examine impact of environmental regulation on corporate cash holdings. We document that heavy-polluting firms increase their holdings 15% more than non-heavy-polluting due stringent regulation. Further tests show heightened uncertainty, limited access ba...

This study examines whether related-party transactions (RPTs) impact the value of firms’ cash holdings. Using a 2011–2018 sample Korean public firms, we find that greater RPTs lead to lower holdings value. In particular, this decline is more pronounced in chaebol firms than non-chaebol firms. Our findings suggest unique and complex corporate governance structure makes it difficult for outside i...

As the decision-makers and implementers of a firm’s financial strategy, executives play critical role in cash holding activities, their psychological characteristics have major impact on holdings. This paper investigates association between CEO organizational identification firm The empirical results show that is negatively associated with holdings, negative more pronounced when level developme...

This paper examines whether the market reaction to investment announcements is conditional on company excess cash holdings. Cash may convey significant price-relevant information about future flows and strategic direction of a company. Using sample 4,256 corporate by firms listed London Stock Exchange over period 2005–2019, we show that reactions new are higher for with Furthermore, provide evi...