dc.contributor.author | Tong, Zhenxu | |
dc.date.accessioned | 2016-02-25T11:29:38Z | |
dc.date.issued | 2014-07-14 | |
dc.description.abstract | The trade-off theory of corporate cash holdings predicts that there is an optimal level of cash. We test the trade-off theory by investigating the relation between deviations from optimal cash holdings and the valuation of cash from a shareholder's perspective. We decompose corporate cash holdings into the optimal level of cash and the deviations from the optimum. We find that the marginal value of cash for shareholders is higher when a change in cash moves corporate cash holdings towards the optimal level and that this relationship holds for both the above-optimal deviations and the below-optimal deviations. We conclude that the results are consistent with the prediction of the trade-off theory of corporate cash holdings. | en_GB |
dc.description.sponsorship | KPMG Global Valuation Institute Research Grant | en_GB |
dc.identifier.citation | Vol. 46, No. 30, pp. 3695 - 3707 | en_GB |
dc.identifier.doi | 10.1080/00036846.2014.939374 | |
dc.identifier.uri | http://hdl.handle.net/10871/20115 | |
dc.language.iso | en | en_GB |
dc.publisher | Taylor & Francis (Routledge): SSH Titles | en_GB |
dc.relation.url | http://www.tandfonline.com/doi/abs/10.1080/00036846.2014.939374 | en_GB |
dc.subject | corporate cash holdings | en_GB |
dc.subject | trade-off theory | en_GB |
dc.title | Deviations from optimal corporate cash holdings and the valuation from a shareholder's perspective | en_GB |
dc.type | Article | en_GB |
dc.date.available | 2016-02-25T11:29:38Z | |
dc.identifier.issn | 1466-4283 | |
dc.description | Article | en_GB |
dc.description | This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on 14 Jul 2014, available online: http://wwww.tandfonline.com/10.1080/00036846.2014.939374. | en_GB |
dc.identifier.eissn | 1466-4283 | |
dc.identifier.journal | Applied Economics | en_GB |