Product Market Predation Risk and the Value of Cash Holdings

2013 ◽  
Author(s):  
Jianxin Daniel Chi ◽  
Xunhua Su
Keyword(s):  
Predation Risk ◽  
Cash Holdings ◽  
Product Market ◽  
Value Of Cash

scholarly journals The Impact of Predation Risk on the Marginal Value of Cash Holdings: An Empirical Perspective

2017 ◽  
Vol 06 (02) ◽  
pp. 150-162
Author(s):  
Xinbao Yang ◽  
Jiguang Zheng
Keyword(s):  
Predation Risk ◽  
Cash Holdings ◽  
Marginal Value ◽  
Value Of Cash ◽  
Empirical Perspective ◽  
The Impact

Industry Tournament Incentives and the Product-Market Benefits of Corporate Liquidity

2018 ◽  
Vol 54 (2) ◽  
pp. 829-876 ◽  
Author(s):  
Jian Huang ◽  
Bharat A. Jain ◽  
Omesh Kini
Keyword(s):  
Chief Executive Officer ◽  
Cash Holdings ◽  
Chief Executive ◽  
Product Market ◽  
Capital Expenditures ◽  
Marginal Value ◽  
Corporate Liquidity ◽  
Value Of Cash ◽  
Excess Cash ◽  
Market Benefits

We evaluate the link between chief executive officer (CEO) industry tournament incentives (ITIs) and the product-market benefits of corporate liquidity. We find that ITIs increase the level and marginal value of cash holdings. Furthermore, ITIs strengthen the relation between excess cash and market-share gains, especially for firms that face significant competitive threats. Additionally, for firms with excess cash, higher ITIs lead to increased research and development (R&D) expenses, capital expenditures, and spending on focused acquisitions as well as reduced payouts. Overall, our findings suggest that ITIs increase the value of cash by incentivizing CEOs to deploy cash strategically to capture its product-market benefits.

Product Market Predatory Threats and the Value of Cash Holdings

2013 ◽  
Author(s):  
Jianxin Daniel Chi ◽  
Xunhua Su
Keyword(s):  
Cash Holdings ◽  
Product Market ◽  
Value Of Cash

Audit Quality and the Market Value of Cash Holdings: The Case of Office-Level Auditor Industry Specialization

2014 ◽  
Vol 34 (2) ◽  
pp. 27-57 ◽  
Author(s):  
Jeong-Bon Kim ◽  
Jay Junghun Lee ◽  
Jong Chool Park
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Capital Investment ◽  
Audit Quality ◽  
Cash Holdings ◽  
Market Value ◽  
High Quality ◽  
Value Of Cash ◽  
Office Level ◽  
Industry Specialist

SUMMARY This study investigates the monitoring role of high-quality auditors defined as office-level industry specialists in the stock market valuation of cash assets. We find that the market value of cash holdings is significantly higher for the client of an industry specialist auditor. The marginal value of cash is 34 cents higher for the client of a joint-industry specialist at both the national and city levels than for the client of a nonspecialist. We also find that cash holdings are more closely associated with capital investment and the market value of capital investment is significantly higher when the auditor is a joint-industry specialist. Moreover, we find that the value of cash increases significantly when the client changes its auditor to a joint-industry specialist. Our findings hold even after controlling for the client's governance efficacy and financial reporting quality. Our results provide new insight into the mechanism through which high-quality audits affect firm value: External audits facilitate shareholders' monitoring over managerial cash expenditures, thereby leading market participants to attach a higher value to cash holdings.

Share pledging, payout policy, and the value of cash holdings

2021 ◽  
Vol 61 ◽  
pp. 18-33
Author(s):  
Robin K. Chou ◽  
Yu-Chun Wang ◽  
J. Jimmy Yang
Keyword(s):  
Cash Holdings ◽  
Payout Policy ◽  
Value Of Cash

CEO Characteristics and Value of Cash Holdings

2017 ◽  
Author(s):  
Seongjae Mun ◽  
Dongwook Seo ◽  
Seung Hun Han
Keyword(s):  
Cash Holdings ◽  
Value Of Cash ◽  
Ceo Characteristics
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