Cash Holdings and Firm Value: A Study of Listed Firms in Romania
High level of cash holding can be appealing for investors as firms have enough cash to finance investments and also to pay dividends. On the other hand, keeping large amount of cash, firms are signaling that they are not able to invest and to develop their businesses. As a consequence, firm value wi...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Ovidius University Press
2016-01-01
|
| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | http://stec.univ-ovidius.ro/html/anale/ENG/2016/2016-II-full/s5/1.pdf |
| _version_ | 1819239068174647296 |
|---|---|
| author | Sorin Gabriel Anton |
| author_facet | Sorin Gabriel Anton |
| author_sort | Sorin Gabriel Anton |
| collection | DOAJ |
| description | High level of cash holding can be appealing for investors as firms have enough cash to finance investments and also to pay dividends. On the other hand, keeping large amount of cash, firms are signaling that they are not able to invest and to develop their businesses. As a consequence, firm value will decrease. The aim of the paper is to test whether cash holdings increase firm value on a sample of Romanian listed firms over the period 2001-2011. Employing a fixed effects model, we found that cash holdings influence negatively firm value after controlling for other firm-specific variables. Our results are useful for managers and also for existing and potential investors in decision making process. |
| first_indexed | 2024-12-23T13:46:14Z |
| format | Article |
| id | doaj.art-f67c525748094722b20f80e7c9ea2ff7 |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-23T13:46:14Z |
| publishDate | 2016-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-f67c525748094722b20f80e7c9ea2ff72022-12-21T17:44:43ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272016-01-01XVI2409414Cash Holdings and Firm Value: A Study of Listed Firms in RomaniaSorin Gabriel Anton0Alexandru Ioan Cuza University of IaşiHigh level of cash holding can be appealing for investors as firms have enough cash to finance investments and also to pay dividends. On the other hand, keeping large amount of cash, firms are signaling that they are not able to invest and to develop their businesses. As a consequence, firm value will decrease. The aim of the paper is to test whether cash holdings increase firm value on a sample of Romanian listed firms over the period 2001-2011. Employing a fixed effects model, we found that cash holdings influence negatively firm value after controlling for other firm-specific variables. Our results are useful for managers and also for existing and potential investors in decision making process.http://stec.univ-ovidius.ro/html/anale/ENG/2016/2016-II-full/s5/1.pdfcash holdingsfirm valueRomanialisted firms |
| spellingShingle | Sorin Gabriel Anton Cash Holdings and Firm Value: A Study of Listed Firms in Romania Ovidius University Annals: Economic Sciences Series cash holdings firm value Romania listed firms |
| title | Cash Holdings and Firm Value: A Study of Listed Firms in Romania |
| title_full | Cash Holdings and Firm Value: A Study of Listed Firms in Romania |
| title_fullStr | Cash Holdings and Firm Value: A Study of Listed Firms in Romania |
| title_full_unstemmed | Cash Holdings and Firm Value: A Study of Listed Firms in Romania |
| title_short | Cash Holdings and Firm Value: A Study of Listed Firms in Romania |
| title_sort | cash holdings and firm value a study of listed firms in romania |
| topic | cash holdings firm value Romania listed firms |
| url | http://stec.univ-ovidius.ro/html/anale/ENG/2016/2016-II-full/s5/1.pdf |
| work_keys_str_mv | AT soringabrielanton cashholdingsandfirmvalueastudyoflistedfirmsinromania |