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題名 Saving for a rainy day: Evidence from the 2000 dot-com crash and the 2008 credit crisis
作者 周冠男
Chen, Hsuan-Chi
Chou, Robin K.
Lu, Chien-Lin
貢獻者 財務管理學系
關鍵詞 Cash holdings; Financial crisis; Financial distress; Value of cash
日期 2018-02
上傳時間 29-Jan-2018 10:46:13 (UTC+8)
摘要 This article examines the role of pre-saved cash in helping financially constrained firms during the 2000 dot-com crash and the 2008 financial crisis, both of which were exogenous shocks to industrial firms. The results show that constrained firms tended to increase capital investments during these severe economic downturns if they had pre-saved more cash. Constrained firms instead exhibited lower excess returns and incurred higher likelihoods of financial distress during the severe downturns if they had saved less cash prior to the events. Firms that experienced the 2000 dot-com crash and saved cash thereafter were less likely to default during the 2008 financial crisis, indicating the existence and benefit of learning effects. This study supports a precautionary motive for cash savings, showing that pre-saved cash helps financially constrained firms fund investment and reduces the likelihood of financial distress during severe market downturns. It demonstrates that saving for a rainy day really is valuable.
關聯 Journal of Corporate Finance, Volume 48, Pages 680-699
資料類型 article
DOI https://doi.org/10.1016/j.jcorpfin.2017.12.025
dc.contributor 財務管理學系
dc.creator (作者) 周冠男zh_TW
dc.creator (作者) Chen, Hsuan-Chien_US
dc.creator (作者) Chou, Robin K.en_US
dc.creator (作者) Lu, Chien-Linen_US
dc.date (日期) 2018-02
dc.date.accessioned 29-Jan-2018 10:46:13 (UTC+8)-
dc.date.available 29-Jan-2018 10:46:13 (UTC+8)-
dc.date.issued (上傳時間) 29-Jan-2018 10:46:13 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/115633-
dc.description.abstract (摘要) This article examines the role of pre-saved cash in helping financially constrained firms during the 2000 dot-com crash and the 2008 financial crisis, both of which were exogenous shocks to industrial firms. The results show that constrained firms tended to increase capital investments during these severe economic downturns if they had pre-saved more cash. Constrained firms instead exhibited lower excess returns and incurred higher likelihoods of financial distress during the severe downturns if they had saved less cash prior to the events. Firms that experienced the 2000 dot-com crash and saved cash thereafter were less likely to default during the 2008 financial crisis, indicating the existence and benefit of learning effects. This study supports a precautionary motive for cash savings, showing that pre-saved cash helps financially constrained firms fund investment and reduces the likelihood of financial distress during severe market downturns. It demonstrates that saving for a rainy day really is valuable.en_US
dc.format.extent 643529 bytes-
dc.format.mimetype application/pdf-
dc.relation (關聯) Journal of Corporate Finance, Volume 48, Pages 680-699
dc.subject (關鍵詞) Cash holdings; Financial crisis; Financial distress; Value of cashen_US
dc.title (題名) Saving for a rainy day: Evidence from the 2000 dot-com crash and the 2008 credit crisisen_US
dc.type (資料類型) article
dc.identifier.doi (DOI) 10.1016/j.jcorpfin.2017.12.025
dc.doi.uri (DOI) https://doi.org/10.1016/j.jcorpfin.2017.12.025