The effect of stock liquidity on corporate cash holdings: The real investment motive

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2022-03-09 DOI:10.1111/irfi.12377

Hyun Joong Im, Barry Oliver, Heungju Park

引用次数: 0

Abstract

This study examines the relationship between stock liquidity and corporate cash holdings and explores a new economic mechanism driving this relationship. Using a regression discontinuity design approach based on the annual reconstitution of the Russell 1000/2000 indices, we find that stock liquidity has a positive causal effect on corporate cash holdings. This effect is more pronounced for firms with more investment opportunities. These results suggest that enhanced stock liquidity increases corporate cash holdings by expanding the set of investment opportunities. Our evidence supports the real investment motive over the repurchase motive.

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股票流动性对企业现金持有量的影响:真实投资动机

本研究考察了股票流动性与企业现金持有量之间的关系，并探讨了驱动这种关系的一种新的经济机制。采用基于罗素1000/2000指数年度重构的回归不连续设计方法，我们发现股票流动性对企业现金持有量具有正因果效应。这种效应对于拥有更多投资机会的公司更为明显。这些结果表明，股票流动性的增强通过扩大投资机会集来增加企业的现金持有量。我们的证据支持真实投资动机优于回购动机。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.