Financial Constraints and Corporate Liquidity Management

• 발행기관: 한국자료분석학회
• 저자명: Byungmo Kim
• 간행물 정보: 『Journal of The Korean Data Analysis Society (JKDAS)』Vol.13 No.1, 17~25쪽, 전체 9쪽
• 주제분류: 자연과학 > 통계학
• 파일형태: PDF
• 발행일자: 2011.02.28

영문 초록

This paper examines the effect of financial constraints on corporate liquidity management. Financially constrained firms have incentives to stockpile cash (liquid assets) for future investments. It leads to a positive association between cash flows and the change in cash holdings. Using multivariate regression models, this paper examines the sensitivity between the cash flows and the change in cash holdings, and compares it between financially constrained firms and unconstrained firms. We find that the sensitivity is greater and statistically more significant for constrained firms than for unconstrained firms, being consistent with the hypothesis. The results suggest that financial constraints are one of the important factors that determine corporate financing policy.

목차

1. Introduction

2. Backgrounds and testable hypothesis

3. Sample

4. Empirical Analyses

5. Conclusion

References

키워드

financial constraints liquidity management cash cash flows