Proceedings of the 2nd International Conference on Education, Management and Social Science

Effects of Excess Cash Holdings on Firm Value: Study from the Perspective of Corporate Life Cycle

Authors
Zhijian Zeng, Xing Zhou
Corresponding Author
Zhijian Zeng
Available Online August 2014.
DOI
https://doi.org/10.2991/icemss-14.2014.49How to use a DOI?
Keywords
Excess cash holdings level, Firm value, Corporate life cycle
Abstract
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.

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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  -