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Inter-country Analysis on the Financial Determinants of Corporate Cash Holdings for the Large Firms With Headquarters in the U.S. and Korea

한국과 미국 대기업들의 현금유동성 보유수준에 대한 재무적 결정요인 분석

  • 김한준 (호서대학교 사회과학대학 경영학부)
  • Received : 2017.05.24
  • Accepted : 2017.06.12
  • Published : 2017.06.28

Abstract

This study investigated one of the controversial issues on debate or even controversial between policy makers at the government and corporate levels: To examine any financial determinants on the cash holdings of the firms in the advanced and emerging capital markets. Futhermore, it focused on the large representative firms headquartered in the U.S. and the Republic of Korea, taking into account scarcity of the previous literature concentrated on the comparative studies on this particular subject. Several legitimate, but robust econometric estimations such as static and dynamic panel data models and Tobit regression, were applied to investigate possible financial factors ono the cash liquidity. Given the continued debates or arguments on the excess cash reserves between interest partied at the government and corporate levels in the advanced and/or emerging capital markets, and more accelerated capital transfers among associated nations by engaging in the arrangements of the FTAs, the results of the study may provide a vision to search for the optimal level of corporate cash holdings for firms in the two nations.

Keywords

Cash Holdings;Financial Determinants;U.S. Capital Markets;Korean Capital Markets;Panel Data Models;Tobit Regression Model

Acknowledgement

Supported by : National Research Foundation of Korea

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