期刊論文
| 學年 | 103 |
|---|---|
| 學期 | 2 |
| 出版（發表）日期 | 2015-04-01 |
| 作品名稱 | Over-investment, the marginal value of cash holdings and corporate governance |
| 作品名稱（其他語言） | |
| 著者 | Huang, Chih Jen; Liao, Tsai-Ling; Chang, Yu-Shan |
| 單位 | |
| 出版者 | |
| 著錄名稱、卷期、頁數 | Studies in Economics and Finance 32(2), pp.204-221 |
| 摘要 | Purpose – The purpose of this paper is to examine how investors’ valuation of cash holdings is related to firm-level investment. Design/methodology/approach – As prior studies note that holding excess cash serve as a driver to would be over-investing, and that over-investment imposes substantial agency costs on shareholders, the authors focus on the value implications of holding cash in the presence of over-investment from the perspective of shareholders. Findings – By examining the publicly traded companies on Taiwan stock market, the authors uncover that cash is valued less in firms with over-investment than in those with under-investment and the magnitude of over-investment is negatively related to the marginal value of cash holdings (MVCH). It reveals that investment activities impact the value that shareholders place on cash holdings. Moreover, further tests indicate that higher block holdings and the presence of independent directors on boards can effectively mitigate the negative impact of over-investment on the MVCH. Practical implications – This paper enhances the understanding of the valuation implications of cash reserves held by firms with over-investment and the effectiveness of governance structures in containing the detrimental effect of investment-related agency costs on the value of holding cash. Originality/value – This paper provides pioneering evidence that outside investors discount cash assets in over-investing firms to reflect their expectations that they will not receive the full benefit of these assets; and this paper extends the literature on corporate governance by assessing the role of governance mechanisms in reversing the negative relation between over-investment and the MVCH. |
| 關鍵字 | Corporate governance;Cash holdings;Agency costs;Over-investment |
| 語言 | en |
| ISSN | 1086-7376 |
| 期刊性質 | 國外 |
| 收錄於 | |
| 產學合作 | |
| 通訊作者 | |
| 審稿制度 | 是 |
| 國別 | GBR |
| 公開徵稿 | |
| 出版型式 | ,電子版,紙本 |
| 相關連結 |
機構典藏連結 ( http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/108164 ) |