scholarly journals All You Need Is Cash: Corporate Cash Holdings and Investment after the Financial Crisis

2019 ◽  
Author(s):  
Andreas Joseph ◽  
Christiane Kneer ◽  
Neeltje van Horen ◽  
Jumana Saleheen
Keyword(s):  
Financial Crisis ◽  
Cash Holdings ◽  
Corporate Cash Holdings

Foreign ownership, state ownership and cash holdings under the global financial crisis: evidence from the emerging market of Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quynh Nga Nguyen Thi ◽  
Quoc Trung Tran ◽  
Hong Phat Doan
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Cash Holdings ◽  
Foreign Ownership ◽  
State Ownership ◽  
Exogenous Shock ◽  
Content Type ◽  
The Global Financial Crisis ◽  
Corporate Cash Holdings

PurposeThis paper investigates how the global financial crisis changes the effects of state ownership and foreign ownership on corporate cash holdings in an emerging market.Design/methodology/approachWe employ an interactive term between state ownership (foreign ownership) and a crisis dummy to analyze how the global financial crisis determines the effect of state ownership (foreign ownership) on corporate cash holdings.FindingsWith a research sample including 5,493 observations from 621 listed firms over the period 2007–2017, we find that state ownership (foreign ownership) is negatively (positively) related to corporate cash holdings and the effect of state ownership (foreign ownership) is stronger (weaker) during the crisis period. Moreover, the increase in the effect of state ownership is larger in financially unconstrained firms.Originality/valuePrior research shows that the effects of state ownership and foreign ownership on corporate cash holdings in emerging markets are still debatable. This paper extends this line of research by investigating how the global financial crisis – an exogenous shock – changes these effects.

Long-Term Effects of a Financial Crisis: Evidence from Cash Holdings of East Asian Firms

2012 ◽  
Vol 47 (3) ◽  
pp. 617-641 ◽  
Author(s):  
Kyojik (Roy) Song ◽  
Youngjoo Lee
Keyword(s):  
Financial Crisis ◽  
East Asian ◽  
Cash Holdings ◽  
Firm Characteristics ◽  
Long Term Effects ◽  
Long Term Effect ◽  
Increased Sensitivity ◽  
Cash Flow Volatility ◽  
Corporate Cash Holdings

AbstractWe investigate the long-term effect of the Asian financial crisis on corporate cash holdings in 8 East Asian countries. The Asian firms build up cash holdings by decreasing investment activities after the crisis. We find that the increase in cash holdings is not explained by changes in firm characteristics but by changes in the firms’ demand function for cash, which indicates that the crisis has systematically changed the firms’ cash-holding policies. Specifically, the firms’ increased sensitivity to cash flow volatility is one of the main factors explaining the higher level of their cash holdings in the postcrisis period.

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