An Empirical Study on Listed Company’s Value of Cash Holdings : An Information Asymmetry Perspective
Joint Authors
Lan, Qiujun
Huang, Chuangxia
Ma, Xin
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-05-13
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
The value of a company’s cash holdings is currently a hot issue in corporate finance research.
Current studies have not reached a unified conclusion.
Moreover, no one has ever studied that from the perspective of information asymmetry.
However, there still exist disputes about the measurement of the degree of information asymmetry.
Previous studies mostly adopt single index to analysis this issue, and the economic meaning it represents only reflects some information of asymmetric information, so it was one-sided and the conclusion also differ.
Drawing on the market microstructure and the index of information asymmetry of managers and investors, this paper constructs a new proxy for information asymmetry based on the principal component analysis.
We find that a company’s value of cash holdings decreases increasingly with its level of information asymmetry, and the relationship between information asymmetry and the value of cash holdings is nonlinear.
American Psychological Association (APA)
Huang, Chuangxia& Ma, Xin& Lan, Qiujun. 2014. An Empirical Study on Listed Company’s Value of Cash Holdings : An Information Asymmetry Perspective. Discrete Dynamics in Nature and Society،Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-506370
Modern Language Association (MLA)
Huang, Chuangxia…[et al.]. An Empirical Study on Listed Company’s Value of Cash Holdings : An Information Asymmetry Perspective. Discrete Dynamics in Nature and Society No. 2014 (2014), pp.1-12.
https://search.emarefa.net/detail/BIM-506370
American Medical Association (AMA)
Huang, Chuangxia& Ma, Xin& Lan, Qiujun. An Empirical Study on Listed Company’s Value of Cash Holdings : An Information Asymmetry Perspective. Discrete Dynamics in Nature and Society. 2014. Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-506370
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-506370