DOI QR코드

DOI QR Code

Categorical Financial Analyses on the Level of Corporate Cash Reserves for the Korean Chaebol Firms in the Post-Era of the Global Financial Crisis

국제금융위기 이후 한국 재벌기업들의 현금유보 수준에 대한 계층별 재무적 특성요인 분석

  • 김한준 (호서대학교 사회과학대학 경영학부)
  • Received : 2015.08.10
  • Accepted : 2015.09.16
  • Published : 2016.02.28

Abstract

The primary objective of implementing the study was to further investigate any pronounced financial components affecting the level of cash retention for the Korean chaebol firms. The research was framed to test for two hypotheses on the cash savings with utilizing the chaebol firms during the post-era of the global financial turmoil (from 2009 to 2013). In the first hypothesis test, any significant explanatory variables relative to the cash holdings, were identified in each corresponding category of the conditional quantile regression (CQR) model, while multilogistic regression analysis was performed to discriminate relevant financial factors in each pair of classes consisting of the chaebol firms. Concerning the results, liquidity, agency costs, and cash conversion cycle were found to be statistically significant in the majority of classified categories in the former test and liquidy, firm size, and dividend yield, also showed discriminating powers in each pair of categorical for the firms in the latter test.

Keywords

Cash Holdings;Chaebol Firms;Quantile Regression;Multilogistic Regression;Financial Determinant

References

  1. H. Kim, "Contemporary Financial Profile and Its Implications on the Level of Corporate Cash Holdings for Korean Chaebol Firms," Journal of the Korea Academia-Industrial Cooperation Society, Vol.16, No.6, pp.3870-3881, 2015. https://doi.org/10.5762/KAIS.2015.16.6.3870
  2. H. Kim, "Further Investigations on the Financial Characteristics of Cash Reserves for the Chaebol Firms in the Korean Capital Markets," J. of the Korea Contents Association, Vol,15, No.7, pp.436-448, 2015.
  3. The Yonhapnews, Available from http://www.yonhapnews.co.kr/dev/9601000000.html (accessed Feb.16, 2015)
  4. The CEO ScoreDaily, Available from http://www.ceoscoredaily.com/news/article_print.html (accessed July 28, 2015).
  5. B. Al-Najjar, "The Determinants of Corporate Cash Holdings: Evidence from Some Emerging Markets," International Business Review, Vol.22, pp.77-88, 2013. https://doi.org/10.1016/j.ibusrev.2012.02.004
  6. L. Farinah and P. Prego, "Cash Holdings Determinants in the Portuguese Economy," Financial Stability Report, May, pp.107-115, 2014.
  7. Y. Lian, M. Sepehri, and M. Foley, "Corporate Cash Holdings and Financial Crisis: An Empirical Study of Chinese Companies," Eurasian Business Review, Vol.1, No.2, pp.112-124, 2011.
  8. R. Koenker and G. Basset, "Regression Quantiles," Econometrica, Vol.44, 1978.
  9. R. Koenker and K. Hallock, "Quantile Regression: An Introduction," Journal of Econometric Perspectives, Vol.15, pp.143-156, 2001. https://doi.org/10.1257/jep.15.4.143
  10. Introduction to SAS. UCLA: Statistical Consulting Group, Available from http://www.ats.ucla.edu/stat/sas/notes2/ (accessed July 23, 2015).
  11. H. Kim, "Financial Aspects of Korean Chaebol Firms in terms of Trend of Cash Holdings and Type of a Domestic Bourse," J. of the Korea Contents Association, Vol.15, No.10, Forthcoming, 2015.
  12. S. Anjum and Q. A. Malik, "Determinants of Corporate Liquidity - An Analysis of Cash Holdings," IOSR J. of Business and Management, pp.94-100, Vol.7, No.2, 2013. https://doi.org/10.9790/487X-07294100
  13. V. Subramaniam, T. Tang, H. Yue, and X. Zhou, "Firm Structure and Corporate Cash Holdings," Journal of Corporate Finance, Vol.17, No.7 pp.59-773, 2011.
  14. M. Jensen, "Agency Costs of Free Cash Flow, Corporate Finance and Takeovers," American Economic Review, Vol.76, pp.323-329, 1986.
  15. A. Gill and C. Shah, "Determinants of Corporate Cash Holdings: Evidence from Canada," international Journal of Economics and Finance, Vol.4, No.1, pp.70-79, 2012.