This study examined one of the contemporary issues on debate to identify any significant financial determinants on the cash holdings of the cheabol firms in the Korean domestic capital markets. Several important findings on the financial characteristics affecting the cash holdings were evidenced by utilizing various methodologies for statistical estimations. Financial or managerial implications with discussion were provided for the pronounced factors such as CASHFLOW, MVBV, REINVEST, and AGENCY, along with CCC which was also found in the subsequent robustness tests. Assuming that the chaebol firms were overall subject to the financial constrains, they may increase or stockpile cash reserves as internal capital for future investment opportunities or repayment of existing debt, rather than external financing burdened by a high cost of capital. Given the on-going controversy on the optimal level of corporate cash holdings coupled with any foreseeable capital transfer among the associated nations through the investment vehicles such the FTAs (Free Trade Agreements) or TPP (Trans-Pacific Pacts), any empirical findings of the study may shed new light on identifying financial determinants which may significantly affect the level of cash holdings for the business conglomerates, the ‘chaebol’ firms, in the Korean capital markets.
Keywords: Cash Holdings, Chaebol, Korean Capital Markets, Static Panel Data Model, Dynamic Panel Data Model, Tobit Regression.
자료실
자료실
[2015년 제 1차] Contemporary Financial Profile and Its Implications
작성자 : 관리자
조회수 : 911
게시일 :
2015-03-04