An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms

After the 2008 financial crisis, people have become aware of how crucial the role played by corporate cash holdings in financial decision of firms. Numerous previous studies investigate the effects of firm characteristics on cash holdings in recent years, but the impact of industry effect and macroe...

Full description

Bibliographic Details
Main Author: WANG, ZHENQIAN
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/30070/
_version_ 1848793915267743744
author WANG, ZHENQIAN
author_facet WANG, ZHENQIAN
author_sort WANG, ZHENQIAN
building Nottingham Research Data Repository
collection Online Access
description After the 2008 financial crisis, people have become aware of how crucial the role played by corporate cash holdings in financial decision of firms. Numerous previous studies investigate the effects of firm characteristics on cash holdings in recent years, but the impact of industry effect and macroeconomic conditions only receive little attention in this field. This study aims to investigate the impacts of industry effect and macroeconomic conditions on corporate cash holdings by examining 335 UK public firms listed on FTSE all shares index during the period of 2003 and 2012. By using pooled OLS regression model, Fama and MacBeth cross-sectional regression model, and fixed effects regression model, the result shows that the impacts of firm characteristics are generally consistent with the previous studies. Moreover, macroeconomic variable such as GDP growth rate and inflation affect corporate cash holdings. Furthermore, the impacts of firm characteristic and macroeconomic determinants are different across different industry.
first_indexed 2025-11-14T19:07:53Z
format Dissertation (University of Nottingham only)
id nottingham-30070
institution University of Nottingham Malaysia Campus
institution_category Local University
language English
last_indexed 2025-11-14T19:07:53Z
publishDate 2015
recordtype eprints
repository_type Digital Repository
spelling nottingham-300702017-10-19T14:58:09Z https://eprints.nottingham.ac.uk/30070/ An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms WANG, ZHENQIAN After the 2008 financial crisis, people have become aware of how crucial the role played by corporate cash holdings in financial decision of firms. Numerous previous studies investigate the effects of firm characteristics on cash holdings in recent years, but the impact of industry effect and macroeconomic conditions only receive little attention in this field. This study aims to investigate the impacts of industry effect and macroeconomic conditions on corporate cash holdings by examining 335 UK public firms listed on FTSE all shares index during the period of 2003 and 2012. By using pooled OLS regression model, Fama and MacBeth cross-sectional regression model, and fixed effects regression model, the result shows that the impacts of firm characteristics are generally consistent with the previous studies. Moreover, macroeconomic variable such as GDP growth rate and inflation affect corporate cash holdings. Furthermore, the impacts of firm characteristic and macroeconomic determinants are different across different industry. 2015-09-16 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/30070/1/DT%20final.pdf WANG, ZHENQIAN (2015) An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms. [Dissertation (University of Nottingham only)]
spellingShingle WANG, ZHENQIAN
An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms
title An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms
title_full An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms
title_fullStr An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms
title_full_unstemmed An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms
title_short An empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: Evidence from UK firms
title_sort empirical study on the impacts of industry effect and macroeconomic conditions on corporate cash holdings: evidence from uk firms
url https://eprints.nottingham.ac.uk/30070/