Does Corporate Cash Holding Level Explain Mutual Fund Flow? Global Evidence

IF 3 Q2 BUSINESS

Vision-The Journal of Business Perspective Pub Date : 2023-08-14 DOI:10.1177/09722629231180441

B. Alsubaiei, A. Alomran

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Abstract

This study investigates the influence of corporate cash holdings on the flow of open-end equity mutual funds. Building on the economic mechanisms that drive investors’ decisions when they construct their portfolio, the study analyses a comprehensive global dataset that includes 13,674 firms and 58,406 funds from 23 countries for the period from 2008 to 2017. Multiple regression models (pooled and fixed effect) are implemented to explore this relationship. The results show that there is a negative relationship between mutual fund flow and corporate cash holdings which indicates the significant role corporate cash holding policies have on the mutual fund industry. This article contributes to the literature by adding a new factor that can explain mutual fund investors’ behaviour. To the best of our knowledge, it is the first study to examine the relationship between corporate cash holdings and mutual fund flow, and one of the few studies to examine the influence of corporate-level decisions on the mutual fund industry. The results could help fund managers to better forecast future fund flow by considering corporate-level policies, namely cash holdings.

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企业现金持有量能否解释共同基金流量?全球的证据

本研究探讨企业现金持有量对开放式股票型共同基金流量的影响。该研究以驱动投资者构建投资组合决策的经济机制为基础，分析了一个全面的全球数据集，其中包括2008年至2017年期间来自23个国家的13,674家公司和58,406只基金。采用多元回归模型(池效应和固定效应)来探讨这种关系。结果表明，共同基金流量与企业现金持有量呈负相关关系，表明企业现金持有量政策对共同基金行业的影响显著。本文通过增加一个可以解释共同基金投资者行为的新因素，对文献做出了贡献。据我们所知，这是第一个研究公司现金持有量和共同基金流量之间关系的研究，也是少数研究公司层面决策对共同基金行业影响的研究之一。研究结果可以帮助基金经理通过考虑公司层面的政策，即现金持有量，更好地预测未来的资金流量。

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

Vision-The Journal of Business Perspective Multiple-

CiteScore

4.60

自引率

0.00%

发文量

121

期刊介绍： Vision-The Journal of Business Perspective is a quarterly peer-reviewed journal of the Management Development Institute, Gurgaon, India published by SAGE Publications. This journal contains papers in all functional areas of management, including economic and business environment. The journal is premised on creating influence on the academic as well as corporate thinkers. Vision-The Journal of Business Perspective is published in March, June, September and December every year. Its targeted readers are researchers, academics involved in research, and corporates with excellent professional backgrounds from India and other parts of the globe. Its contents have been often used as supportive course materials by the academics and corporate professionals. The journal has been providing opportunity for discussion and exchange of ideas across the widest spectrum of scholarly opinions to promote theoretical, empirical and comparative research on problems confronting the business world. Most of the contributors to this journal range from the outstanding and the well published to the upcoming young academics and corporate functionaries. The journal publishes theoretical as well as applied research works.

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