An investigation of determinants of corporate cash holdings: UK evidence
Wang, Jingyuan (2011) An investigation of determinants of corporate cash holdings: UK evidence. [Dissertation (University of Nottingham only)] (Unpublished)
This dissertation investigates the determinants of corporate cash holdings for the UK publicly traded firms between 2001 and 2010. The empirical evidence suggests that small firms tend to accumulate more cash. The results reveal that firms with better investment opportunities and firms with higher cash flow uncertainty hold more cash. The leverage, cash flow, net working capital and capital expenditure are negatively related with corporate cash holdings. In addition, the impact of financial constraints on corporate cash holdings is also analyzed. Financial constrained firms tend to accumulate more cash than other firms. The findings support the transaction cost motive and precautionary motive of holding cash.
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