Determinants of corporate cash holding: evidence from UK listed firms

• Authors: Le Duc Hoang , Tran Phi Long , Ta Thu Phuong
• Languages of publication: EN

Abstracts

EN

Our paper revisits the determinants of company cash holding. It attempts to explain the cash holding behavior of firms’ managers by investigating non-financial companies listed on the London Stock Exchange from 2011 to 2016. Our results indicate that firm size, leverage, cash flow, cash flow volatility, and investment opportunity exert influence on such cash holding behavior. It can be explained by the trade-off theory, the pecking-order theory and free cash flow theory. Our results may shed light on the decrease in the cash holding level for the post-crisis period.

Keywords

EN

Cash holding; trade-off theory; pecking order theory; free cash flow theory

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Prague Development Center, Czech Republic
• Journal: Business and Economic Horizons
• Year: 2018
• Volume: Volume 14
• Issue: Issue 3
• Pages: 561-569

Dates

published

2018-06-14

Contributors

author

Le Duc Hoang

• National Economics University, Vietnam

author

Tran Phi Long

• National Economics University, Vietnam

author

Ta Thu Phuong

• National Economics University, Vietnam

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