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http://dx.doi.org/10.5392/JKCA.2017.17.06.504

Inter-country Analysis on the Financial Determinants of Corporate Cash Holdings for the Large Firms With Headquarters in the U.S. and Korea  

Kim, Hanjoon (호서대학교 사회과학대학 경영학부)
Publication Information
The Journal of the Korea Contents Association / v.17, no.6, 2017 , pp. 504-513 More about this Journal
Abstract
This study investigated one of the controversial issues on debate or even controversial between policy makers at the government and corporate levels: To examine any financial determinants on the cash holdings of the firms in the advanced and emerging capital markets. Futhermore, it focused on the large representative firms headquartered in the U.S. and the Republic of Korea, taking into account scarcity of the previous literature concentrated on the comparative studies on this particular subject. Several legitimate, but robust econometric estimations such as static and dynamic panel data models and Tobit regression, were applied to investigate possible financial factors ono the cash liquidity. Given the continued debates or arguments on the excess cash reserves between interest partied at the government and corporate levels in the advanced and/or emerging capital markets, and more accelerated capital transfers among associated nations by engaging in the arrangements of the FTAs, the results of the study may provide a vision to search for the optimal level of corporate cash holdings for firms in the two nations.
Keywords
Cash Holdings; Financial Determinants; U.S. Capital Markets; Korean Capital Markets; Panel Data Models; Tobit Regression Model;
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Times Cited By KSCI : 3  (Citation Analysis)
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