Peer Effects on Corporate Cash Holdings

Title	Peer Effects on Corporate Cash Holdings
Creator	湛可南 Chan, Konan Chen, Yi-Wen Chang, Yuanchen
Contributor	財管系
Key Words	Cash holdings ; Peer effects ; Information asymmetry
Date	2019-05
Date Issued	27-Apr-2020 16:01:07 (UTC+8)
Summary	This paper examines peer effects on the corporate cash holdings of manufacturing firms in the U.S. market. Responding to possible preemptive moves by rivals using their cash holdings, we hypothesize that managers consider their rivals` cash levels when determining their own cash holdings. The results show that the ratio of cash to total assets is significantly influenced by peer firms’ average cash holdings and their characteristics. We also find that firms that have higher R&D expenditures are more inclined to mimic the cash holdings of their rivals. We conclude that the peer effect is an important determinant of corporate cash policies in U.S. manufacturing firms.
Relation	International Review of Economics & Finance, Vol.61, pp.213-227
Type	article

dc.contributor	財管系
dc.creator (作者)	湛可南
dc.creator (作者)	Chan, Konan
dc.creator (作者)	Chen, Yi-Wen
dc.creator (作者)	Chang, Yuanchen
dc.date (日期)	2019-05
dc.date.accessioned	27-Apr-2020 16:01:07 (UTC+8)	-
dc.date.available	27-Apr-2020 16:01:07 (UTC+8)	-
dc.date.issued (上傳時間)	27-Apr-2020 16:01:07 (UTC+8)	-
dc.identifier.uri (URI)	http://nccur.lib.nccu.edu.tw/handle/140.119/129511	-
dc.description.abstract (摘要)	This paper examines peer effects on the corporate cash holdings of manufacturing firms in the U.S. market. Responding to possible preemptive moves by rivals using their cash holdings, we hypothesize that managers consider their rivals` cash levels when determining their own cash holdings. The results show that the ratio of cash to total assets is significantly influenced by peer firms’ average cash holdings and their characteristics. We also find that firms that have higher R&D expenditures are more inclined to mimic the cash holdings of their rivals. We conclude that the peer effect is an important determinant of corporate cash policies in U.S. manufacturing firms.
dc.format.extent	1371196 bytes	-
dc.format.mimetype	application/pdf	-
dc.relation (關聯)	International Review of Economics & Finance, Vol.61, pp.213-227
dc.subject (關鍵詞)	Cash holdings ; Peer effects ; Information asymmetry
dc.title (題名)	Peer Effects on Corporate Cash Holdings
dc.type (資料類型)	article