The effects of banking market structure on corporate cash holdings and the value of cash

IF 2.1 2区经济学 Q2 BUSINESS, FINANCE

Journal of Empirical Finance Pub Date : 2024-01-01 DOI:10.1016/j.jempfin.2023.101460

Shengfeng Li , Liang Han , Biao Mi

引用次数: 0

Abstract

We investigate the impact of the local banking market structure on the level of corporate cash holdings and the value of cash. We find that, in more concentrated banking markets, firms increase their cash holdings by issuing more equity. The marginal value of $1 cash increases by 10 cents with a one-standard-deviation increase in bank concentration. The positive relationship between bank concentration and value of cash is robust to a rich set of tests such as for firms having access to bond markets or firms using syndicated loans and is more prominent for more financially constrained firms. We also explore the mechanism, and our results suggest that in more concentrated banking markets firms demand more cash to shield against default risk.

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银行业市场结构对企业现金持有量和现金价值的影响

我们研究了当地银行业市场结构对企业现金持有水平和现金价值的影响。我们发现，在银行业集中度较高的市场，企业会通过发行更多股票来增加现金持有量。银行集中度每增加一个标准差，1 美元现金的边际价值就会增加 10 美分。银行集中度与现金价值之间的正相关关系在一系列丰富的检验中都是稳健的，例如对于能够进入债券市场的企业或使用银团贷款的企业，这种关系在财务约束较强的企业中更为突出。我们还探讨了这一机制，结果表明，在银行业集中度较高的市场中，企业需要更多现金来抵御违约风险。

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

Journal of Empirical Finance Multiple-

CiteScore

3.40

自引率

3.80%

发文量

期刊介绍： The Journal of Empirical Finance is a financial economics journal whose aim is to publish high quality articles in empirical finance. Empirical finance is interpreted broadly to include any type of empirical work in financial economics, financial econometrics, and also theoretical work with clear empirical implications, even when there is no empirical analysis. The Journal welcomes articles in all fields of finance, such as asset pricing, corporate finance, financial econometrics, banking, international finance, microstructure, behavioural finance, etc. The Editorial Team is willing to take risks on innovative research, controversial papers, and unusual approaches. We are also particularly interested in work produced by young scholars. The composition of the editorial board reflects such goals.