Corporate Cash Holdings and Share Buyback: Evidence from Emerging Markets

IF 1.2 Q3 BUSINESS, FINANCE

Journal of Emerging Market Finance Pub Date : 2023-08-03 DOI:10.1177/09726527231184555

Vedika Saxena, Seshadev Sahoo

引用次数: 1

Abstract

This study evaluates corporate cash holdings (CCHs) as a determinant of share buyback for three emerging economies, India, Malaysia, and South Korea, from 2002 to 2020. We find CCH as a significant determinant of share buyback for our sample nations. Our results suggest that share buyback is a flexible way for firms to distribute excess cash across our sample nations. Our study also documents the impact of different country-level investor protection frameworks on buybacks. A favorable relationship between a strong investor protection environment (good governance) and buyback explains the effective role of buyback in resolving agency conflicts compared to dividends. JEL Codes: C5, F3, G3

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企业现金持有与股票回购：来自新兴市场的证据

本研究评估了2002年至2020年印度、马来西亚和韩国三个新兴经济体的企业现金持有量（CCH），将其作为股票回购的决定因素。我们发现CCH是我们样本国家股票回购的重要决定因素。我们的研究结果表明，股票回购是公司在样本国家分配多余现金的一种灵活方式。我们的研究还记录了不同国家层面的投资者保护框架对回购的影响。强大的投资者保护环境（良好治理）和回购之间的良好关系解释了回购在解决代理冲突方面与股息相比的有效作用。JEL代码：C5、F3、G3

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 Emerging Market Finance BUSINESS, FINANCE-

CiteScore

1.80

自引率

33.30%

发文量

期刊介绍： The Journal of Emerging Market Finance is a forum for debate and discussion on the theory and practice of finance in emerging markets. While the emphasis is on articles that are of practical significance, the journal also covers theoretical and conceptual aspects relating to emerging financial markets. Peer-reviewed, the journal is equally useful to practitioners and to banking and investment companies as to scholars.