Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry

This study investigates the determinants of cash-holdings levels in the US retail industry. The sample contains 706 firms in a 20 year period of 1992 to 2011. This study employed an eight-variable model to determine whether these variables exerted a significant impact on the level of cash holdings i...

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Main Author: Zhang, Yuan
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2012
Online Access:https://eprints.nottingham.ac.uk/25862/
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author Zhang, Yuan
author_facet Zhang, Yuan
author_sort Zhang, Yuan
building Nottingham Research Data Repository
collection Online Access
description This study investigates the determinants of cash-holdings levels in the US retail industry. The sample contains 706 firms in a 20 year period of 1992 to 2011. This study employed an eight-variable model to determine whether these variables exerted a significant impact on the level of cash holdings in the US retail industry- the eight variables are, investment opportunity, firm size, cash flow, leverage, bank debt, liquid asset substitutes, capital expenditure and dividend pay-out. The study found that investment opportunities had a significantly positively relationship to the level of cash holdings, whilst firm size, bank debt, liquid asset substitutes and dividend pay-out has a significantly negatively relationship to cash holdings. The results provided support for the trade-off theory and the transaction motive and the precautionary motive in relation to level of cash-holdings in the US retail industry.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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spelling nottingham-258622017-10-19T13:09:14Z https://eprints.nottingham.ac.uk/25862/ Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry Zhang, Yuan This study investigates the determinants of cash-holdings levels in the US retail industry. The sample contains 706 firms in a 20 year period of 1992 to 2011. This study employed an eight-variable model to determine whether these variables exerted a significant impact on the level of cash holdings in the US retail industry- the eight variables are, investment opportunity, firm size, cash flow, leverage, bank debt, liquid asset substitutes, capital expenditure and dividend pay-out. The study found that investment opportunities had a significantly positively relationship to the level of cash holdings, whilst firm size, bank debt, liquid asset substitutes and dividend pay-out has a significantly negatively relationship to cash holdings. The results provided support for the trade-off theory and the transaction motive and the precautionary motive in relation to level of cash-holdings in the US retail industry. 2012 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/25862/1/Dissertation-_Written_2012_FINAL.pdf Zhang, Yuan (2012) Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Zhang, Yuan
Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry
title Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry
title_full Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry
title_fullStr Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry
title_full_unstemmed Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry
title_short Determinants of Corporate Cash-holding Levels: An Investigation of the US Retail Industry
title_sort determinants of corporate cash-holding levels: an investigation of the us retail industry
url https://eprints.nottingham.ac.uk/25862/