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| Title | Misvaluation and the Corporate Propensity to Hold Cash |
| Creator | 周冠男 Chou, Robin K. Chen, Hsuan-Chi Lu, Chien-Lin |
| Contributor | 財管系 |
| Key Words | Cash holdings;Misvaluation;Employee stock options |
| Date | 2021-10 |
| Date Issued | 11-Apr-2022 15:44:37 (UTC+8) |
| Summary | This study adopts a new perspective, misvaluation, to explain corporate propensity to hold cash. We find a strong cross-sectional relationship between misvaluation and the propensity to hold cash, which can be attributed to firms` investment, cash dividends, and equity raising activities. We further show that the equity issuance channel is driven by both firm-initiated issuance activities and the exercise of employee stock options. The results are robust after controlling for endogeneity issues. Several additional robustness tests reject alternative explanations, such as precautionary motives, agency conflicts, near-term cash needs, and tax motives. |
| Relation | Journal of Corporate Finance, Vol.70, pp.102076 |
| Type | article |
| DOI | https://doi.org/10.1016/j.jcorpfin.2021.102076 |
| dc.contributor | 財管系 | |
| dc.creator (作者) | 周冠男 | |
| dc.creator (作者) | Chou, Robin K. | |
| dc.creator (作者) | Chen, Hsuan-Chi | |
| dc.creator (作者) | Lu, Chien-Lin | |
| dc.date (日期) | 2021-10 | |
| dc.date.accessioned | 11-Apr-2022 15:44:37 (UTC+8) | - |
| dc.date.available | 11-Apr-2022 15:44:37 (UTC+8) | - |
| dc.date.issued (上傳時間) | 11-Apr-2022 15:44:37 (UTC+8) | - |
| dc.identifier.uri (URI) | http://nccur.lib.nccu.edu.tw/handle/140.119/139825 | - |
| dc.description.abstract (摘要) | This study adopts a new perspective, misvaluation, to explain corporate propensity to hold cash. We find a strong cross-sectional relationship between misvaluation and the propensity to hold cash, which can be attributed to firms` investment, cash dividends, and equity raising activities. We further show that the equity issuance channel is driven by both firm-initiated issuance activities and the exercise of employee stock options. The results are robust after controlling for endogeneity issues. Several additional robustness tests reject alternative explanations, such as precautionary motives, agency conflicts, near-term cash needs, and tax motives. | |
| dc.format.extent | 717926 bytes | - |
| dc.format.mimetype | application/pdf | - |
| dc.relation (關聯) | Journal of Corporate Finance, Vol.70, pp.102076 | |
| dc.subject (關鍵詞) | Cash holdings;Misvaluation;Employee stock options | |
| dc.title (題名) | Misvaluation and the Corporate Propensity to Hold Cash | |
| dc.type (資料類型) | article | |
| dc.identifier.doi (DOI) | 10.1016/j.jcorpfin.2021.102076 | |
| dc.doi.uri (DOI) | https://doi.org/10.1016/j.jcorpfin.2021.102076 |