THE DETERMINANTS OF CASH HOLDINGS
Abstract We examine a sample of over 350 Hong Kong and UK firms in 2011 and 2012 to see the different cash holding determinants after financial crisis between these two countries and also to find new evidence about the cash holding determinants. We identify our cash holding amount as cash to asset...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2013
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| Online Access: | https://eprints.nottingham.ac.uk/26486/ |
| _version_ | 1848793181871669248 |
|---|---|
| author | Wang, Yang |
| author_facet | Wang, Yang |
| author_sort | Wang, Yang |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract
We examine a sample of over 350 Hong Kong and UK firms in 2011 and 2012 to see the different cash holding determinants after financial crisis between these two countries and also to find new evidence about the cash holding determinants. We identify our cash holding amount as cash to asset ratio and treat it as a dependent variable. Our independent variables are market to book ratio, firm size, cash flow to asset, net working capital to asset, capital expenditure to asset, leverage, industry sector, cash flow at risk, R&D to sale, acquisition to asset, ROE and ROA respectively. We detect a strong positive relationship between cash ratio and investment opportunities in the UK and a strong negative relationship between cash holdings and firm size in Hong Kong. There are also other important cash holdings determinants, such as leverage, acquisition to asset, ROE, ROA and R&D to sale of UK, net working capital to asset, capital expenditure to asset and R&D to sale of Hong Kong. According to our result, the determinants of cash holdings in a developed country are quite different from that in a developing country. However, when carrying out the regression model of the cash to asset ratio on firm sectors, we find no significant relationship between financial firms/non financial firms and cash holdings. |
| first_indexed | 2025-11-14T18:56:13Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-26486 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:56:13Z |
| publishDate | 2013 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-264862017-10-19T13:27:35Z https://eprints.nottingham.ac.uk/26486/ THE DETERMINANTS OF CASH HOLDINGS Wang, Yang Abstract We examine a sample of over 350 Hong Kong and UK firms in 2011 and 2012 to see the different cash holding determinants after financial crisis between these two countries and also to find new evidence about the cash holding determinants. We identify our cash holding amount as cash to asset ratio and treat it as a dependent variable. Our independent variables are market to book ratio, firm size, cash flow to asset, net working capital to asset, capital expenditure to asset, leverage, industry sector, cash flow at risk, R&D to sale, acquisition to asset, ROE and ROA respectively. We detect a strong positive relationship between cash ratio and investment opportunities in the UK and a strong negative relationship between cash holdings and firm size in Hong Kong. There are also other important cash holdings determinants, such as leverage, acquisition to asset, ROE, ROA and R&D to sale of UK, net working capital to asset, capital expenditure to asset and R&D to sale of Hong Kong. According to our result, the determinants of cash holdings in a developed country are quite different from that in a developing country. However, when carrying out the regression model of the cash to asset ratio on firm sectors, we find no significant relationship between financial firms/non financial firms and cash holdings. 2013-09-14 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26486/1/cash_holding_determinants_pdf.pdf Wang, Yang (2013) THE DETERMINANTS OF CASH HOLDINGS. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Wang, Yang THE DETERMINANTS OF CASH HOLDINGS |
| title | THE DETERMINANTS OF CASH HOLDINGS |
| title_full | THE DETERMINANTS OF CASH HOLDINGS |
| title_fullStr | THE DETERMINANTS OF CASH HOLDINGS |
| title_full_unstemmed | THE DETERMINANTS OF CASH HOLDINGS |
| title_short | THE DETERMINANTS OF CASH HOLDINGS |
| title_sort | determinants of cash holdings |
| url | https://eprints.nottingham.ac.uk/26486/ |