|
IWATA Kiyonori
Department Tokyo Keizai University , Business Administration Position Full-Time Lecturer |
|
| Language | English |
| Publication Date | 2023/11/14 |
| Type | Research paper (scientific journal) |
| Peer Review | Peer reviewed |
| Title | How does stock liquidity affect corporate cash holdings in Japan?: A pre-registered report |
| Contribution Type | Joint author |
| Journal | Pacific-Basin Finance Journal |
| Journal Type | Another Country |
| Author and coauthor | Ryosuke Fujitani, Yukihiro Yasuda |
| Details | Our research proposes a compelling link: firms with more actively traded (liquid) stocks would hold higher cash reserves as a cushion against unexpected stock price crashes.
This prediction becomes particularly striking in scenarios where managers are not primarily driven to use cash to boost stock prices through stock repurchases. To rule out possible alternative explanations, we will examine variations in the relationship between stock liquidity and cash holdings. |
| URL for researchmap | https://www.sciencedirect.com/science/article/pii/S0927538X23002767 |