Based on the big data of Shanghai and Shenzhen stock exchanges A-share listed companies from 2009 to 2019, this paper uses fixed effect model analyze impact mechanism corporate social responsibility commercial credit financing. The results show that: there is a significant negative relationship between financing, degree market competition positively adjusts two. Further research finds that will...

U.S. multinational corporations (MNCs) hold significant amounts of cash abroad. Using a handcollected sample of large U.S. MNCs, we find that the percentage of cash trapped overseas has a significantly negative impact on the market value of a firm’s cash holdings. Such negative effect is more pronounced when firms are subject to higher repatriation tax rate, when firms have higher costs of rais...

I quantify a new motive of holding cash through the channel of financing risk. I show that if the access to future credit is risky, firms may issue long-term debt now and save funds in cash to secure the current credit capacity for the future. I structurally estimate the model and find that this motive explains about 30% of cash holdings in the data. Counterfactual experiments indicate that the...

Payouts play an important role in the relationship between shareholders and agents in terms of rewarding the decisions of shareholders. Previous studies have observed that payout decisions appear in different ways depending on an industry's financial and operating structures. Since the airline industry has been characterized as high debt dependency, this study presumes distinctive characteristi...

We have developed a simple approach to valuing risky corporate debt when corporations own securities issued by other corporations. We assume that corporate debt can be valued as an option on corporate business asset value, and derive payoff functions when there exist cross-holdings of stock or debt between two firms. Next we show that payoff functions with multiple cross-holdings can be solved ...

We study the implications of financial hedging for corporate cash policy and value holdings. Using a web crawler program to collect data on use derivatives between 1993 2016, we find that US public firms with programs have smaller reserves but higher than without contracts in place. Our empirical results are robust when controlling potential endogeneity issues, governance, regimes alternative m...

The restrictions of a shariah-compliant index could have consequences for corporate finance. This research investigates the difference in cash holding policies between and conventional firms Indonesia capital market. Our empirical results suggest that firm holds significantly less compared to firm. finding still maintains after excluding top performers market controlling other proxies holdings ...