Background:The wealth effect of limiting shareholder rights via anti-takeover provisions(ATPs)is a contentious issue.By taking the differential effect hypothesis perspective,our study aims to provide additional eviden...Background:The wealth effect of limiting shareholder rights via anti-takeover provisions(ATPs)is a contentious issue.By taking the differential effect hypothesis perspective,our study aims to provide additional evidence about the relation between ATPs and acquisition performance.Methods:We examine the interaction of antitakeover provisions(ATPs)with firm characteristics and governance environment in explaining the cross-section of bidder announcement returns.Using a sample of 3,340 completed acquisitions by 1,217 firms during 1996–2006,we test the association between ATPs,firm characteristics,and governance environments with bidder returns.Results:We find that ATPs hurt acquisition performance only when acquirers hold a high level of excess cash.Similarly,ATPs are associated with lower bidder returns only when industry competition is weak and public pension fund ownership is low as well.By contrast,when industry competition is intense and/or public pension fund ownership is high,ATPs do not hurt bidder returns.Conclusions:The complementarity among ATPs,excess cash,industry competition,and public pension fund ownership suggests that ATPs per se do not necessarily result in value-destroying acquisitions for all firms.We address the endogeneity issue of unknown variables by using a proxy for firm prestige and draw the same conclusions.展开更多
Using a sample of 280 firms listed on the Pakistan Stock Exchange,we empirically investigate factors that determine corporate cash holdings in different periods from 2005 to 2014.We divide the sample into three sub-pe...Using a sample of 280 firms listed on the Pakistan Stock Exchange,we empirically investigate factors that determine corporate cash holdings in different periods from 2005 to 2014.We divide the sample into three sub-periods—pre-crisis,crisis,and post-crisis—and apply a panel data model to estimate the results.The results suggest that financial crises affect firms’cash holdings policies.Further,findings show that financial crisis has influenced the relationship of size and leverage with cash holdings.In particular,cash flow,liquidity,and tangibility are major determinants of cash holdings in the sub-periods.We present important implications for corporate managers,academicians,and policymakers.展开更多
This paper regards the uncredited value-added tax(VAT)refund policy promulgated in 2018 as an exogenous shock to improve the neutrality for VAT.Based on the statistics of listed companies in the non-financial sectors ...This paper regards the uncredited value-added tax(VAT)refund policy promulgated in 2018 as an exogenous shock to improve the neutrality for VAT.Based on the statistics of listed companies in the non-financial sectors from 2013 to 2020,this paper applies the difference-in-differences(DID)approach to study the impact of the uncredited VAT refund policy on corporate cash holdings.The study finds that the policy has eased the impact of non-tax-neutral impact of non-refundable tax credits and lowered the level of corporate cash holdings.Furthermore,the analysis of capital sources verified that the policy has optimized the corporate capital conditions.These findings have proved to be robust after a series of tests.At the level of cross-sectional differences,the uncredited VAT refund policy exerts both"resource effect"and"signal effect",enabling companies to reduce cash holdings in the dimensions of both tax endowment and market expectation.At the level of policy effects,the policy improved the corporate behavior of high cash holdings for the production and operation cycle,with more notable impact on enterprises with higher tax credit rating.At the level of economic consequences,the adjustment of corporate cash holdings induced by uncredited VAT refund policy has significantly improved operating performance and reduced performance volatility,with a greater impact on enterprises with high capital intensity.The research findings evaluate the uncredited VAT refund policy from the perspective of tax neutrality,laying a theoretical foundation for further optimizing the uncredited VAT refund policy and the modern fiscal,tax and financial systems.展开更多
Faultlines can affect a board of director’s effectiveness in supervising senior managers,which in turn affects the value of a company’s cash holdings.Based on sample data from Chinese A-share listed companies from 2...Faultlines can affect a board of director’s effectiveness in supervising senior managers,which in turn affects the value of a company’s cash holdings.Based on sample data from Chinese A-share listed companies from 2004 to 2016,we examine the relationship between board faultlines and the value of cash holdings.The empirical results indicate that board faultlines have a significant inhibitory effect on cash holding value.This inhibitory effect is stronger for board faultlines resulting from deep-level attributes.Furthermore,the inhibitory effect of board faultlines is stronger in state-owned enterprises(SOEs)than in non-SOEs.As an important governance mechanism,management shareholdings can reduce agency costs and mitigate the negative impact of board fissures on cash holdings.Overall,we enrich the literature on the economic consequences of board faultlines and their influence on cash holding value.We also offer companies practical suggestions for improving the supervisory mechanism of their board of directors.展开更多
As the decision-makers and implementers of a firm’s financial strategy,executives play a critical role in cash holding activities,and their psychological characteristics have a major impact on cash holdings.This pape...As the decision-makers and implementers of a firm’s financial strategy,executives play a critical role in cash holding activities,and their psychological characteristics have a major impact on cash holdings.This paper investigates the association between CEO organizational identification and firm cash holdings.The empirical results show that CEO organizational identification is negatively associated with firm cash holdings,and the negative association is more pronounced when the level of financial development is higher and economic uncertainty is lower.Further analysis reveals that the higher a CEO’s organizational identification,the higher the firm’s R&D investment and capital expenditure,and high CEO organizational identification can increase the value of firm cash holdings.Overall,our findings supplement the literature on organizational identification and cash holdings,and on the effect of executives’psychological characteristics on corporate financial decision-making.展开更多
The decision-making of cash holdings is very important for the daily operation of enterprises.This present paper tries to establish uncertain optimal cash holding models with the constraint of safe cash holding area,a...The decision-making of cash holdings is very important for the daily operation of enterprises.This present paper tries to establish uncertain optimal cash holding models with the constraint of safe cash holding area,and discusses the solutions of the models by establishing Lagrange function under KKT condition.On the one hand,this paper enriches the existing cash holding models,on the other hand,it is also a comprehensive discussion on the application of uncertainty theory in cash holding management.展开更多
The bullwhip effect is w idely found in business and exerts adverse effects on business activities.To investigate the influence of the bullwhip effect on firm s'performance and their responses,this study proposed ...The bullwhip effect is w idely found in business and exerts adverse effects on business activities.To investigate the influence of the bullwhip effect on firm s'performance and their responses,this study proposed an environment-behavior-performance analysis fram ework and offered a new perspective for studying the bullwhip effect.Using data collected from 1,734 listed manufacturers in China from 2002 to 2017,we adopted regression models to test the proposed m odel and conducted a series of robustness tests.We find that the bullwhip effect is positively related to operating risk,inventory,and cash holdings,and the moderate levels of inventory and cash are negatively associated with operating risk.Specifically,inventory and cash play different roles and work together to alleviate operating risk induced by the bullwhip effect.However,excess resource holdings are positively associated with operating risk.Therefore,firm swith different levels of resources should hold suitable levels of inventory,cash,or both as contingent responses to the bullwhip effect.展开更多
文摘Background:The wealth effect of limiting shareholder rights via anti-takeover provisions(ATPs)is a contentious issue.By taking the differential effect hypothesis perspective,our study aims to provide additional evidence about the relation between ATPs and acquisition performance.Methods:We examine the interaction of antitakeover provisions(ATPs)with firm characteristics and governance environment in explaining the cross-section of bidder announcement returns.Using a sample of 3,340 completed acquisitions by 1,217 firms during 1996–2006,we test the association between ATPs,firm characteristics,and governance environments with bidder returns.Results:We find that ATPs hurt acquisition performance only when acquirers hold a high level of excess cash.Similarly,ATPs are associated with lower bidder returns only when industry competition is weak and public pension fund ownership is low as well.By contrast,when industry competition is intense and/or public pension fund ownership is high,ATPs do not hurt bidder returns.Conclusions:The complementarity among ATPs,excess cash,industry competition,and public pension fund ownership suggests that ATPs per se do not necessarily result in value-destroying acquisitions for all firms.We address the endogeneity issue of unknown variables by using a proxy for firm prestige and draw the same conclusions.
文摘Using a sample of 280 firms listed on the Pakistan Stock Exchange,we empirically investigate factors that determine corporate cash holdings in different periods from 2005 to 2014.We divide the sample into three sub-periods—pre-crisis,crisis,and post-crisis—and apply a panel data model to estimate the results.The results suggest that financial crises affect firms’cash holdings policies.Further,findings show that financial crisis has influenced the relationship of size and leverage with cash holdings.In particular,cash flow,liquidity,and tangibility are major determinants of cash holdings in the sub-periods.We present important implications for corporate managers,academicians,and policymakers.
基金General Program of the National Natural Science Foundation of China"Bank Development,Debt Capital and Corporate Innovation-Mystery of Macro-Micro Contradictions and Its Explanation"(71772091)Tianjin Research Innovation Project for Postgraduate Students"Research into the Corporate Cash Holdings and Corporate Value amid Digital Financial Development"(2021YJSB079).The authors would like to express appreciation for the valuable suggestions from anonymous reviewers,as well as from associate professor Cheng Cheng of Hunan University and Dr.Yuchen Yang of Nankai University at the 19th Chinese Finance Annual Meeting.The authors take sole responsibility for the paper.
文摘This paper regards the uncredited value-added tax(VAT)refund policy promulgated in 2018 as an exogenous shock to improve the neutrality for VAT.Based on the statistics of listed companies in the non-financial sectors from 2013 to 2020,this paper applies the difference-in-differences(DID)approach to study the impact of the uncredited VAT refund policy on corporate cash holdings.The study finds that the policy has eased the impact of non-tax-neutral impact of non-refundable tax credits and lowered the level of corporate cash holdings.Furthermore,the analysis of capital sources verified that the policy has optimized the corporate capital conditions.These findings have proved to be robust after a series of tests.At the level of cross-sectional differences,the uncredited VAT refund policy exerts both"resource effect"and"signal effect",enabling companies to reduce cash holdings in the dimensions of both tax endowment and market expectation.At the level of policy effects,the policy improved the corporate behavior of high cash holdings for the production and operation cycle,with more notable impact on enterprises with higher tax credit rating.At the level of economic consequences,the adjustment of corporate cash holdings induced by uncredited VAT refund policy has significantly improved operating performance and reduced performance volatility,with a greater impact on enterprises with high capital intensity.The research findings evaluate the uncredited VAT refund policy from the perspective of tax neutrality,laying a theoretical foundation for further optimizing the uncredited VAT refund policy and the modern fiscal,tax and financial systems.
基金the financial support of the National Natural Science Foundation of China(71872196,71402198)the National Social Science Foundation of China(19ZDA098)+2 种基金the MOE Project of Humanities and Social Sciences of China(19YJA790032)the Beijing Social Foundation of China(15JGC176)the support of the Program for Innovation Research of the Central University of Finance and Economics and the Graduate Student Research Grant awarded by the Graduate School of the Central University of Finance and Economics(20182Y005)
文摘Faultlines can affect a board of director’s effectiveness in supervising senior managers,which in turn affects the value of a company’s cash holdings.Based on sample data from Chinese A-share listed companies from 2004 to 2016,we examine the relationship between board faultlines and the value of cash holdings.The empirical results indicate that board faultlines have a significant inhibitory effect on cash holding value.This inhibitory effect is stronger for board faultlines resulting from deep-level attributes.Furthermore,the inhibitory effect of board faultlines is stronger in state-owned enterprises(SOEs)than in non-SOEs.As an important governance mechanism,management shareholdings can reduce agency costs and mitigate the negative impact of board fissures on cash holdings.Overall,we enrich the literature on the economic consequences of board faultlines and their influence on cash holding value.We also offer companies practical suggestions for improving the supervisory mechanism of their board of directors.
基金the financial support from the National Natural Science Foundation of China(Grant No.71862017,71802199,71972152)China Postdoctoral Science Foundation(Grant No.2018M642587)+1 种基金Shenzhen“Peacock Project”High-level Talents Research Foundation,Shenzhen Key Research Base of Humanities and Social Science,China(Xi’an)Institute for Silk Road Research Program(Grant No.2019YA03)Education Department of Shaanxi Province Key Research Base of Philosophy and Social Science(Grant No.20JZ053)
文摘As the decision-makers and implementers of a firm’s financial strategy,executives play a critical role in cash holding activities,and their psychological characteristics have a major impact on cash holdings.This paper investigates the association between CEO organizational identification and firm cash holdings.The empirical results show that CEO organizational identification is negatively associated with firm cash holdings,and the negative association is more pronounced when the level of financial development is higher and economic uncertainty is lower.Further analysis reveals that the higher a CEO’s organizational identification,the higher the firm’s R&D investment and capital expenditure,and high CEO organizational identification can increase the value of firm cash holdings.Overall,our findings supplement the literature on organizational identification and cash holdings,and on the effect of executives’psychological characteristics on corporate financial decision-making.
基金This research was partially supported by the National Natural Science Foundation of China[grant numbers 11871275,71472088].
文摘The decision-making of cash holdings is very important for the daily operation of enterprises.This present paper tries to establish uncertain optimal cash holding models with the constraint of safe cash holding area,and discusses the solutions of the models by establishing Lagrange function under KKT condition.On the one hand,this paper enriches the existing cash holding models,on the other hand,it is also a comprehensive discussion on the application of uncertainty theory in cash holding management.
基金the National Key R&D Program of China,under grant No.2019YFB1404901the National Natural Science Foundation of China(NSFC),under Grants No.71821002,No.72091214 and No.71602171.
文摘The bullwhip effect is w idely found in business and exerts adverse effects on business activities.To investigate the influence of the bullwhip effect on firm s'performance and their responses,this study proposed an environment-behavior-performance analysis fram ework and offered a new perspective for studying the bullwhip effect.Using data collected from 1,734 listed manufacturers in China from 2002 to 2017,we adopted regression models to test the proposed m odel and conducted a series of robustness tests.We find that the bullwhip effect is positively related to operating risk,inventory,and cash holdings,and the moderate levels of inventory and cash are negatively associated with operating risk.Specifically,inventory and cash play different roles and work together to alleviate operating risk induced by the bullwhip effect.However,excess resource holdings are positively associated with operating risk.Therefore,firm swith different levels of resources should hold suitable levels of inventory,cash,or both as contingent responses to the bullwhip effect.
