Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico
This research expands on previous studies of cash holdings and their determinants by studying the relationship between the degree of internationalization and the level of corporate cash holdings. We used a sample of nonfinancial, publicly traded companies from Brazil and Mexico for the period from...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
2015-05-01
|
| Series: | RAC: Revista de Administração Contemporânea |
| Subjects: | |
| Online Access: | http://www.anpad.org.br/periodicos/arq_pdf/a_1579.pdf |
| _version_ | 1797721022406852608 |
|---|---|
| author | Newton Arata Hsia Hua Sheng Mayra Ivanoff Lora |
| author_facet | Newton Arata Hsia Hua Sheng Mayra Ivanoff Lora |
| author_sort | Newton Arata |
| collection | DOAJ |
| description | This research expands on previous studies of cash holdings and their determinants by studying the relationship
between the degree of internationalization and the level of corporate cash holdings. We used a sample of nonfinancial,
publicly traded companies from Brazil and Mexico for the period from 2006 to 2010. Our results suggest
that the degree of internationalization is a determinant of cash, and that cash holding increases quadratically as the
degree of company internationalization grows. Such behavior was different from the North American company
studies in Chiang and Wang (2011). Similar to previous studies, both Trade-off and Pecking Order predictions are
relevant control variables in our model. Finally, companies held less cash on their balance sheets during the precrisis
period. |
| first_indexed | 2024-03-12T09:27:53Z |
| format | Article |
| id | doaj.art-07fd186fb36a4b16a65e775a46045f84 |
| institution | Directory Open Access Journal |
| issn | 1415-6555 1982-7849 |
| language | English |
| last_indexed | 2024-03-12T09:27:53Z |
| publishDate | 2015-05-01 |
| publisher | Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) |
| record_format | Article |
| series | RAC: Revista de Administração Contemporânea |
| spelling | doaj.art-07fd186fb36a4b16a65e775a46045f842023-09-02T14:01:20ZengAssociação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)RAC: Revista de Administração Contemporânea1415-65551982-78492015-05-0119Special119http://dx.doi.org/10.1590/1982-7849rac20151452Internationalization and Corporate Cash Holdings: Evidence from Brazil and MexicoNewton Arata0Hsia Hua Sheng1Mayra Ivanoff Lora2Fundação Getulio Vargas – FGV/EESPFundação Getulio Vargas – FGV/EESP; Universidade Federal de São Paulo – UNIFESP/EPPENFundação Getulio Vargas – FGV/EESPThis research expands on previous studies of cash holdings and their determinants by studying the relationship between the degree of internationalization and the level of corporate cash holdings. We used a sample of nonfinancial, publicly traded companies from Brazil and Mexico for the period from 2006 to 2010. Our results suggest that the degree of internationalization is a determinant of cash, and that cash holding increases quadratically as the degree of company internationalization grows. Such behavior was different from the North American company studies in Chiang and Wang (2011). Similar to previous studies, both Trade-off and Pecking Order predictions are relevant control variables in our model. Finally, companies held less cash on their balance sheets during the precrisis period.http://www.anpad.org.br/periodicos/arq_pdf/a_1579.pdfcash management; degree of internationalization; multinational companies. |
| spellingShingle | Newton Arata Hsia Hua Sheng Mayra Ivanoff Lora Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico RAC: Revista de Administração Contemporânea cash management; degree of internationalization; multinational companies. |
| title | Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico |
| title_full | Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico |
| title_fullStr | Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico |
| title_full_unstemmed | Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico |
| title_short | Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico |
| title_sort | internationalization and corporate cash holdings evidence from brazil and mexico |
| topic | cash management; degree of internationalization; multinational companies. |
| url | http://www.anpad.org.br/periodicos/arq_pdf/a_1579.pdf |
| work_keys_str_mv | AT newtonarata internationalizationandcorporatecashholdingsevidencefrombrazilandmexico AT hsiahuasheng internationalizationandcorporatecashholdingsevidencefrombrazilandmexico AT mayraivanofflora internationalizationandcorporatecashholdingsevidencefrombrazilandmexico |