EconPapers    
Economics at your fingertips  
 

Cash Holdings: Determining Factors and Impact on Future Operating Performance for Listed versus Unlisted Firms

Seraina Anagnostopoulou

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2013, vol. 16, issue 02, 1-47

Abstract: Research suggests that the cash ratios of private firms are lower than the ones of public firms, which is not consistent with an expectation for increased importance of the precautionary motive for firms with fewer funding options. The study provides a significant explanation on these lower ratios, attributed to differences in leverage, capital expenditures, internally generated cash flows, and corporate governance. The study finally testifies that excess cash holdings are positively associated with future operating performance for private, but not public firms, a finding which is interpreted as a manifestation of capital raising constraints for unlisted versus listed firms.

Keywords: Cash policy; private firms; liquidity; performance (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219091513500136
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:rpbfmp:v:16:y:2013:i:02:n:s0219091513500136

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219091513500136

Access Statistics for this article

Review of Pacific Basin Financial Markets and Policies (RPBFMP) is currently edited by Cheng-few Lee

More articles in Review of Pacific Basin Financial Markets and Policies (RPBFMP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2020-05-15
Handle: RePEc:wsi:rpbfmp:v:16:y:2013:i:02:n:s0219091513500136