TAILIEUCHUNG - Cash holdings and firm Characteristics: Evidence from UK market

This paper investigates the determinants of UK corporate cash holdings during the period 1980-2012. The global and long term phenomenon of corporate cash pilling has drawn significant attention from researchers. Similarly, this study aims at shedding light on the empirical relationship between cash holding and specific firm characteristics. The empirical findings suggest that cash holdings are positively related to investment opportunity, as R&D and market to book ratio. Cash ratio is also positively related to industry cash flow volatility and negatively affected by cash flow, net working capital, capital expenditures, leverage, tax expenses, age and size. Regarding the development of the determinants of cash holdings, the study indicates that three major variables influenced cash holdings over the years of analysis. In particular, leverage, tax regime and capital expenditures significantly affect the corporate liquidity in UK market. Furthermore, the results suggest that cash holdings are mostly defined by trade off theory. Indeed, our findings offer stimulating insights on the factors that determine the firms’ cash holdings during the past three decades. | Cash holdings and firm Characteristics Evidence from UK market

• Tài chính doanh nghiệp
• Cash holdings
• Trade off model
• Pecking order theory
• Free cash flow theory
• Liquid assets
• Cash flow uncertainty
• Corporate governance
• Uncertain cash flow than ever
• Precautionary measure
• Adjustment rate
• Financial constraints
• Pakistani firms
• Upward and downward adjustment
• Trade off theory
• Vietnamese listed companies
• Advanced accounting
• Subsidiary equity transactions
• Mutual holdings
• Special issues
• Cash flow
• Intercompany transactions
• Corporate liquidity
• Cash holding
• International corporate governance
• Corporate cash holdings
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Short term assets
• Sources of finance
• Management of short term assets
• policies
• affect
• freshwater
• resources
• management
• water
• assets
• demographic
• changes
• liquid
• Merchandising Operation
• Sales
• Purchase Considerations
• Alternative Inventory System
• Control Structure
• Cash
• Highly Liquid Investments
• Merchandising Business
• Tạp chí khoa học
• Bank liquidity
• Opportunity cost
• Commercial banks
• The random effect model
• Vietnamese commercial banks
• Liquidity risk
• Panel data
• Financial situation
• High quality liquid assets
• Required stable funding