The Marginal Value of Cash in Korean Retail Firms
0
조회
0
다운로드
3
인용
0
참고문헌
키워드
초록
Purpose We examine the marginal – value of cash in Korean retail firms, largely unexamined in literature. The marginal value of cash plays pivotal role in cash management policy; especially, a significantly low marginal cash value indicates substantial manager-shareholder conflicts. Research design, data, and methodology – We estimate marginal cash values by adopting the approach of Faulkender & Wang (2006). The sample of retail firms traded in Korean Stock Exchange from 1991 to 2013 is analyzed. Results – We estimate the marginal value of cash for the retail firms as 0.75, implying significant manager-shareholder conflicts. We find a lower marginal value of cash for financially constrained retail firms, contradicting existing theories. The marginal value of cash increases substantially after 2000s, suggesting severe agency conflicts in 1990s as a key reason behind our findings. Conclusions – Our findings support the substantial resource diversion problem in Korean firms and the agency theory of cash management policy. Our results argue against the widely accepted view focusing on implications of financial constraints, which highlights a need of new cash management theory.
Abstract
Purpose We examine the marginal – value of cash in Korean retail firms, largely unexamined in literature. The marginal value of cash plays pivotal role in cash management policy; especially, a significantly low marginal cash value indicates substantial manager-shareholder conflicts. Research design, data, and methodology – We estimate marginal cash values by adopting the approach of Faulkender & Wang (2006). The sample of retail firms traded in Korean Stock Exchange from 1991 to 2013 is analyzed. Results – We estimate the marginal value of cash for the retail firms as 0.75, implying significant manager-shareholder conflicts. We find a lower marginal value of cash for financially constrained retail firms, contradicting existing theories. The marginal value of cash increases substantially after 2000s, suggesting severe agency conflicts in 1990s as a key reason behind our findings. Conclusions – Our findings support the substantial resource diversion problem in Korean firms and the agency theory of cash management policy. Our results argue against the widely accepted view focusing on implications of financial constraints, which highlights a need of new cash management theory.
참고문헌 (16)
- Almeida, H., "The Cash Flow Sensitivity of Cash", The Journal of Finance, 59(4), pp.1777~1804 (2004)
- Bae, K. H., "Tunneling or Value Added? Evidence from Mergers by Korean Business Groups", The Journal of Finance, 57(6), pp.2695~2740 (2002)
- Baek, J. S., "Business Groups and Tunneling : Evidence from Private Securities Offerings by Korean Chaebols", The Journal of Finance, 61(5), pp.2415~2449 (2006)
- Bolton, P., "A Unified Theory of Tobin's q, Corporate Investment, Financing, and Risk Management", The Journal of Finance, 66(5), pp.1545~1578 (2011)
- Dittmar, A., "Corporate Governance and the Value of Cash Holdings", Journal of Financial Economics, 83(3), pp.599~634 (2007)
- Faulkender, M., "Corporate Financial Policy and the Value of Cash", The Journal of Finance, 61(4), pp.1957~1990 (2006)
- Gamba, A., "The Value of Financial Flexibility", The Journal of Finance, 63(5), pp.2263~2296 (2008)
- 공재식, "우리나라 기업의 현금보유수요 결정요인 분석", 재무연구, 19(1), pp.1~41 (2006), 한국재무학회
- Kaplan, S. N., "Do Investment-Cash Flow Sensitivities provide Useful Measures of Financing Constraints?", The Quarterly Journal of Economics, 112(1), pp.169~215 (1997)
- 이정환, "부채변화에 대한 순서이론 예측력 검정 및 유통기업의 함의", 유통과학연구, 13(10), pp.73~82 (2015), 한국유통과학회
- 최용석, "기업의 현금보유 패턴 변화 및 결정요인에 대한 연구", KDI Journal of Economic Policy, 29(2), pp.75~116 (2007), 한국개발연구원[DOI]
- Nikolov, B., "Agency Conflicts and Cash : Estimates from a Dynamic Model", The Journal of Finance, 69(5), pp.1883~1921 (2014)
- 박순홍, "기업지배구조가 보유현금수준에 미치는 영향", 재무연구, 22(2), pp.1~36 (2009), 한국재무학회
- 손삼호, "유통 상장기업의 현금정책에 관한 연구", 유통과학연구, 13(3), pp.69~77 (2015), 한국유통과학회
- 손삼호, "한국 주식시장에서의 선형 자산가격결정모형 검정", 한국증권학회지, 38(4), pp.547~568 (2009), 한국증권학회
- 윤보현, "유통 상장기업들의 자본조달 특징에 관한 연구", 유통과학연구, 12(10), pp.75~83 (2014), 한국유통과학회