Effects of Excess Cash Holdings on Firm Value: Study from the Perspective of Corporate Life Cycle
- Zhijian Zeng, Xing Zhou
- Corresponding Author
- Zhijian Zeng
Available Online August 2014.
- https://doi.org/10.2991/icemss-14.2014.49How to use a DOI?
- Excess cash holdings level, Firm value, Corporate life cycle
- Based on the corporate life cycle theory, the effects of corporate excess cash holdings on firm value is conducted in this paper. The results show that a significant inverse U-shaped relation exists between excess cash holdings level and firm value. It indicates that lots of companies face the problem of financing constraints. Moreover, the results also show that the optimal excess cash holdings level is discrepant at different corporate life cycle stages. Therefore, in order to ensure the corporate cash policy is reasonable, the corporate should make the cash policy according to which corporate life cycle stage it is at.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Zhijian Zeng AU - Xing Zhou PY - 2014/08 DA - 2014/08 TI - Effects of Excess Cash Holdings on Firm Value: Study from the Perspective of Corporate Life Cycle BT - 2nd International Conference on Education, Management and Social Science (ICEMSS 2014) PB - Atlantis Press UR - https://doi.org/10.2991/icemss-14.2014.49 DO - https://doi.org/10.2991/icemss-14.2014.49 ID - Zeng2014/08 ER -