This paper addresses the following unresolved questions: Why do some firms issue equity instead of debt? Why did most firms retain their cash holdings instead of distributing them as dividends in recent times? How do firms change their financing policies during a period of severe financial...

We examine the effect of relationship lending on a firm's cash-holding levels. Relationship lending allows lenders to generate private information about borrowers which mitigates their financial constraints. We find that cash-holding levels for firms with a relationship lender are significantly...

We examine the impact of Australia's Remuneration Amendment Act 2011 on CEO compensation and its spill-over effect on cash holdings to better understand how the new legislation affects the principal–agent relationship. Using a sample of ASX top 300 firms from 2004 to 2015, we find that the Act...

We investigate the relationship between IFRS adoption and firms' cash holdings in ten Arab countries in the MENA. We first show that IFRS adoption reduces the cash holdings of the firms. The effect of IFRS adoption is robust for high-income countries in the Gulf region. This result implies that...

This study investigates how controlling shareholders fraudulently extracted firm value via cash tunnelling from Chinese companies from 1998 to 2011. The evidence suggests that expropriating owners choose a balance sheet account that is not directly related to the firm's operating business in...

Since its first occurance in January 2020 COVID-19 has spread globally. In order to contrain the COVID 19, China has adopted a zero-covid policy and consequently contributed to local economic crises in the form of slowed industry growth. Consequentily in the first Quarter of 2020, this crisis...

Exploiting a unique setting in China where internal controls are intended to manage risks, we investigate how internal controls shape the cash holding policies. Results show that firms with higher internal control quality (ICQ) are less likely to have abnormal cash holdings, either excess or...

We study the effects of firm-level exposure to an epidemic disease on corporate cash holdings amongst U.S firms. Using a text-based measure of firm-level exposure to epidemic diseases and difference-in-difference estimation strategy, we document a positive relationship between the onset of an...

We examine how corporate cash holdings have evolved over time and how they have been valued by shareholders after the unexpected exogenous shocks caused by the COVID-19 pandemic. Consistent with the precautionary motive of cash, we find that firms reserve more cash and the marginal value of cash...

This paper investigates whether gender diversity in the boardroom is associated with corporate cash holdings and whether investor protection moderates the effect of corporate board gender diversity on corporate cash holdings. Using 20,750 firm-year observations from 33 countries, our analyses...