Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry

Zhang, Yuan (2012) Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This study investigates the determinants of cash-holdings levels in the US retail industry. The sample contains 706 firms in a 20 year period of 1992 to 2011. This study employed an eight-variable model to determine whether these variables exerted a significant impact on the level of cash holdings in the US retail industry- the eight variables are, investment opportunity, firm size, cash flow, leverage, bank debt, liquid asset substitutes, capital expenditure and dividend pay-out. The study found that investment opportunities had a significantly positively relationship to the level of cash holdings, whilst firm size, bank debt, liquid asset substitutes and dividend pay-out has a significantly negatively relationship to cash holdings. The results provided support for the trade-off theory and the transaction motive and the precautionary motive in relation to level of cash-holdings in the US retail industry.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 08 Apr 2013 12:02
Last Modified: 26 Oct 2016 00:54
URI: http://eprints.nottingham.ac.uk/id/eprint/25862

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