Determinants of Corporate Cash Holdings: Evidence from Canada
Amarjit Gill,Charul Shah +1 more
TLDR
In this paper, the authors investigated the determinants of corporate cash holdings in Canada and found that market-to-book ratio, cash flow, net working capital, leverage, firm size, board size, and the CEO duality significantly affect the corporate cash holding in Canada.Abstract:
The purpose of this study is to investigate the determinants of corporate cash holdings in Canada. This study also seeks to extend the findings of Afza and Adnan (2007). A sample of 166 Canadian firms listed on Toronto Stock Exchange for a period of 3 years (from 2008-2010) was selected. This study applied co-relational and non-experimental research design. The results show that market-to-book ratio, cash flow, net working capital, leverage, firm size, board size, and the CEO (chief executive officer) duality significantly affect the corporate cash holdings in Canada. This study contributes to the literature on the factors that determine the corporate cash holdings. The findings may be useful for the financial managers, investors, and financial management consultants.read more
Citations
More filters
Journal ArticleDOI
The impact of corporate governance on working capital management efficiency of American manufacturing firms
Amarjit Gill,Nahum Biger +1 more
TL;DR: In this paper, the authors investigated the impact of corporate governance on working capital management efficiency in 180 American manufacturing firms listed on the New York Stock Exchange (NYSE) for a period of three years (from 2009 to 2011).
Journal ArticleDOI
Net working capital, cash flow and performance of UK SMEs
TL;DR: In this paper, the authors examined the influence of cash flow on the relationship between net working capital and firm performance, and found that firms with cash flow below the sample median exhibit lower investment in working capital, but firms with money flow above the sampled median have higher investment.
Journal ArticleDOI
Excess Cash Holdings and Shareholder Value
Edward Lee,Ronan Powell +1 more
TL;DR: The authors examine the determinants of corporate cash holdings in Australia and the impact on shareholder wealth of holding excess cash, and find that a trade-off model best explains the level of a firm's cash holdings.
Journal Article
Cash Holding and Firm Characteristics: Evidence From Nigerian Emerging Market
TL;DR: In this paper, the empirical relationship between cash holding and firm characteristics was investigated. And the results showed that cash flow, net working capital, leverage, profitability and investment in capital expenditure significantly affect the corporate cash holdings in Nigeria.
Journal ArticleDOI
The relationship between managerial entrenchment, earnings management and firm innovation
TL;DR: In this paper, the qualitative effect of corporate governance components, in the form of managerial entrenchment index, on earnings management and innovation was evaluated on the dependent variables of the study using the test of multivariable regressions.
References
More filters
Posted Content
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.
Journal ArticleDOI
Higher market valuation of companies with a small board of directors
TL;DR: In this paper, the authors present evidence consistent with theories that small boards of directors are more effective, using Tobin's Q as an approximation of market valuation, and find an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations.
Journal ArticleDOI
The Capital Structure Puzzle
TL;DR: The Capital Structure Puzzle as discussed by the authors is a well-known problem in finance, and it has been studied extensively in the literature, e.g., The Journal of Finance, Vol. 39, No. 3, 1983 (Jul., 1984), pp. 575-592.
Journal ArticleDOI
The determinants and implications of corporate cash holdings
TL;DR: The authors examine the determinants and implications of holdings of cash and marketable securities by publicly traded U.S. firms in the 1971-1994 period and find evidence supportive of a static tradeoff model of cash holdings.
Posted Content
The Determinants and Implications of Corporate Cash Holdings
TL;DR: The authors examined the determinants and implications of holdings of cash and marketable securities by publicly traded U.S. firms in the 1971-1994 period and found that firms with strong growth opportunities and riskier cash flows hold relatively high ratios of cash to total assets.