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The Determinants of Corporate Cash Holdings

Prenker, Tomas and Kück, Jens (2009)
Department of Business Administration
Abstract
Despite some recent studies conducted on corporate cash holdings, most of the empirical work done focuses on the US market. Since the Anglo-American regulatory approach is quite different from both the German and the Swedish systems, empirical findings on one market cannot simply be applied to other markets. By applying a detailed empirical study to two distinct countries, different corporate governance approaches and their impact on cash holdings can be analyzed. Moreover, by looking at firm-specific variables this study employs different financial theories in order to test which approach is more significant in determining the amount of cash held by a company. The underlying research questions are: What the determinants, both... (More)
Despite some recent studies conducted on corporate cash holdings, most of the empirical work done focuses on the US market. Since the Anglo-American regulatory approach is quite different from both the German and the Swedish systems, empirical findings on one market cannot simply be applied to other markets. By applying a detailed empirical study to two distinct countries, different corporate governance approaches and their impact on cash holdings can be analyzed. Moreover, by looking at firm-specific variables this study employs different financial theories in order to test which approach is more significant in determining the amount of cash held by a company. The underlying research questions are: What the determinants, both firm-specific and on a regulatory level, that drive firms to hold a certain amount of cash on their balance sheet? Furthermore, is there a difference between Swedish and German companies? (Less)
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author
Prenker, Tomas and Kück, Jens
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
fixed effects, investor protection, corporate governance, Corporate cash holdings, panel data, Management of enterprises, Företagsledning, management
language
Swedish
id
1437717
date added to LUP
2009-06-03 00:00:00
date last changed
2012-04-02 17:25:19
@misc{1437717,
  abstract     = {Despite some recent studies conducted on corporate cash holdings, most of the empirical work done focuses on the US market. Since the Anglo-American regulatory approach is quite different from both the German and the Swedish systems, empirical findings on one market cannot simply be applied to other markets. By applying a detailed empirical study to two distinct countries, different corporate governance approaches and their impact on cash holdings can be analyzed. Moreover, by looking at firm-specific variables this study employs different financial theories in order to test which approach is more significant in determining the amount of cash held by a company. The underlying research questions are: What the determinants, both firm-specific and on a regulatory level, that drive firms to hold a certain amount of cash on their balance sheet? Furthermore, is there a difference between Swedish and German companies?},
  author       = {Prenker, Tomas and Kück, Jens},
  keyword      = {fixed effects,investor protection,corporate governance,Corporate cash holdings,panel data,Management of enterprises,Företagsledning,management},
  language     = {swe},
  note         = {Student Paper},
  title        = {The Determinants of Corporate Cash Holdings},
  year         = {2009},
}