Corporate liquidity and firm value: evidence from China’s listed firms
The value of liquidity is a promising area for research. This paper analyzes the correlation be-tween corporate liquidity and firm value by using evidence from China’s listed firms. This paper also investigates the relation among corporate liquidity, R&D and firm size. The authors find that firm...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
EDP Sciences
2016-01-01
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| Series: | SHS Web of Conferences |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1051/shsconf/20162401013 |
| Summary: | The value of liquidity is a promising area for research. This paper analyzes the correlation be-tween corporate liquidity and firm value by using evidence from China’s listed firms. This paper also investigates the relation among corporate liquidity, R&D and firm size. The authors find that firm’s sufficient liquidity can increase its market value. However, corporate liquidity has insignificant effect on firm’s R&D. What’s more, the authors further find that corporate liquidity also has diseconomies of scale. Excess corporate liquidity may ad-versely affect market value of large firms. |
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| ISSN: | 2261-2424 |