The Impact of Environmental, Social and Governance (ESG) Standards on the Value of Cash Holdings: Evidence from Canadian Firms

2014 ◽  
Author(s):  
Eloisa Perez de Toledo ◽  
Evandro Bocatto
Keyword(s):  
Cash Holdings ◽  
Value Of Cash ◽  
The Impact

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

The impact of corporate environmental responsibility on corporate cash holdings: evidence from the most polluting listed companies in China

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jia Liao ◽  
Liping Zheng ◽  
Yu Yuan
Keyword(s):  
Environmental Protection ◽  
Emerging Market ◽  
Cash Holdings ◽  
Listed Companies ◽  
Environmental Responsibility ◽  
Corporate Environmental Responsibility ◽  
Content Type ◽  
Value Of Cash ◽  
The Impact ◽  
Corporate Cash Holdings

PurposeThe purpose of this paper is to examine the impact of corporate environmental responsibility (CER) on corporate cash holdings. This paper also investigates the moderating effects of ownership type and institutional environment between CER and corporate cash holdings.Design/methodology/approachThis study uses the data of the most polluting listed companies on the Shanghai and Shenzhen stock exchange markets over the period 2010–2019. CER data from Hexun.com (a professional CSR evaluation system) are used to measure CER performance. Two proxies are used to measure the level of cash holdings simultaneously, where CASH1 is calculated as the ratio of cash and cash equivalents to total assets, and CASH2 is calculated as the ratio of cash and cash equivalents to net assets (total assets minus cash and cash equivalents). Finally, multiple regression analysis is applied to test the research hypotheses.FindingsThe results show that environmentally responsible companies hold substantially less cash, and the result is statistically significant and robust even after using firm fixed effects and applying alternative measures of cash holdings or alleviating potential endogeneity. In addition, the results of cross-sectional tests show that the negative relation between CER and corporate cash holdings is concentrated among non-state-owned enterprises, and firms in provinces with more developed institutions. Furthermore, the result of the analysis of the economic consequence shows CER significantly increases the value of cash holdings.Research limitations/implicationsThis study focuses on China's institutional context, which limits the generalizability of the findings to other countries. However, the objective of this research can be studied in other institutional settings, so the above limitations provide a springboard for further research. Furthermore, the environmental protection investment, green technology innovation, and even pollutant discharge of companies can also be important indicators to measure the performance of firms in fulfilling their environmental responsibilities, which can be considered in future research.Practical implicationsThe findings of this study may help company management in China to establish a correct view of environmental responsibility to achieve corporate value creation and corporate sustainability. And our research can also provide the policy reference value for the Chinese government to further improve environmental protection policies and systems, guide enterprises to conduct green production to realize the country's vision of an environmentally friendly society.Originality/valueBased on the current background that countries in the world advocate the development of a green economy, this is the first study to examine the impacts of the environmental responsibility of the most polluting companies on corporate cash holdings and the value of cash holdings in the context of China, an emerging market.

The impact of investments in corporate social performance measured by the value of cash holdings

2018 ◽  
Vol 2018 (1) ◽  
pp. 14887
Author(s):  
Eloisa Perez De Toledo ◽  
Evandro Bocatto
Keyword(s):  
Corporate Social Performance ◽  
Social Performance ◽  
Cash Holdings ◽  
Value Of Cash ◽  
Corporate Social ◽  
The Impact

Value of Cash Holdings: The Impact of Cash from Operating, Investment and Financing Activities

2012 ◽  
Author(s):  
Yenn-Ru Chen ◽  
C.S. Agnes Cheng ◽  
Yu-Lin Huang
Keyword(s):  
Cash Holdings ◽  
Value Of Cash ◽  
Investment And Financing ◽  
The Impact

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

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

scholarly journals The Impact of Macroeconomic Uncertainty on Cash Holdings for Non-Financial Firms

2004 ◽  
Author(s):  
Christopher F. Baum ◽  
Mustafa O. Caglayan ◽  
Neslihan Ozkan ◽  
Oleksandr Talavera
Keyword(s):  
Cash Holdings ◽  
Financial Firms ◽  
Macroeconomic Uncertainty ◽  
The Impact
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