La détention d'actifs liquides par les entreprises. Quelles explications ?
AbstractThis paper investigates the reason for corporate cash holdings. In the literature, there is a debate about the motives for these cash holdings (transaction cost theory or managerial opportunism thesis). To obtain new evidence, we focus on the consequences of excessive cash holdings on firm performance, using firm-level data of 4515 firms from Canada, France, Germany, Great-Britain and the USA over the period 1989-2002. We implement a bivariate probit model to take into account the potential joint determination of cash holdings and performance of the firm. We conclude that excessive cash holdings lead to poor firm performances, a result clearly in favor of the managerial opportunism thesis. Classification JEL : C33, G32.
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Bibliographic InfoArticle provided by Presses de Sciences-Po in its journal Revue économique.
Volume (Year): 57 (2006)
Issue (Month): 3 ()
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Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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