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Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies

This study examines corporate cash holdings motives, the cross-sectional variations in their values, as well as their effect on investment opportunities. I use a sample of 315 Malaysian publicly listed firms from years 2005 to 2010 which include the period of pre, during and after World Financial cr...

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Main Author: Mirzarakhmonovich, Bannapov Feruzbek
Format: Thesis
Language:English
English
Published: 2011
Subjects:
HG Finance
Online Access:http://etd.uum.edu.my/2686/1/Bannapov_Feruzbek_Mirzarakhmonovich.pdf
http://etd.uum.edu.my/2686/2/1.Bannapov_Feruzbek_Mirzarakhmonovich.pdf
http://etd.uum.edu.my/2686/
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spelling my.uum.etd.26862016-04-19T02:30:06Z http://etd.uum.edu.my/2686/ Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies Mirzarakhmonovich, Bannapov Feruzbek HG Finance This study examines corporate cash holdings motives, the cross-sectional variations in their values, as well as their effect on investment opportunities. I use a sample of 315 Malaysian publicly listed firms from years 2005 to 2010 which include the period of pre, during and after World Financial crisis. I develop three competing hypotheses (transaction motive, agency motive, and tax motive), theory of financing hierarchy, investment opportunities and value of cash. Findings show that an additional ringgit held by Malaysian firms worth approximately between MYR0.90 and MYR0.93, indicating that shareholders believe that the benefits of companies holding cash outweigh the potential liquidity problems of agency cost associated with it. I also estimate marginal value of cash holdings of the firms by dividing them into three investment opportunity groups. I find that the marginal value of cash holding is MYR0.94 for firms with high investment opportunity, while it is MYR0.91 and MYR0.84 for firms with medium and low investment opportunity respectively. The findings are consistent with previous studies and support all the hypotheses tested. 2011-02 Thesis NonPeerReviewed application/pdf en http://etd.uum.edu.my/2686/1/Bannapov_Feruzbek_Mirzarakhmonovich.pdf application/pdf en http://etd.uum.edu.my/2686/2/1.Bannapov_Feruzbek_Mirzarakhmonovich.pdf Mirzarakhmonovich, Bannapov Feruzbek (2011) Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HG Finance
spellingShingle HG Finance
Mirzarakhmonovich, Bannapov Feruzbek
Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies
description This study examines corporate cash holdings motives, the cross-sectional variations in their values, as well as their effect on investment opportunities. I use a sample of 315 Malaysian publicly listed firms from years 2005 to 2010 which include the period of pre, during and after World Financial crisis. I develop three competing hypotheses (transaction motive, agency motive, and tax motive), theory of financing hierarchy, investment opportunities and value of cash. Findings show that an additional ringgit held by Malaysian firms worth approximately between MYR0.90 and MYR0.93, indicating that shareholders believe that the benefits of companies holding cash outweigh the potential liquidity problems of agency cost associated with it. I also estimate marginal value of cash holdings of the firms by dividing them into three investment opportunity groups. I find that the marginal value of cash holding is MYR0.94 for firms with high investment opportunity, while it is MYR0.91 and MYR0.84 for firms with medium and low investment opportunity respectively. The findings are consistent with previous studies and support all the hypotheses tested.
format Thesis
author Mirzarakhmonovich, Bannapov Feruzbek
author_facet Mirzarakhmonovich, Bannapov Feruzbek
author_sort Mirzarakhmonovich, Bannapov Feruzbek
title Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies
title_short Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies
title_full Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies
title_fullStr Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies
title_full_unstemmed Value of Cash Holdings: An Empirical Evidence on Malaysian Publicly Listed Companies
title_sort value of cash holdings: an empirical evidence on malaysian publicly listed companies
publishDate 2011
url http://etd.uum.edu.my/2686/1/Bannapov_Feruzbek_Mirzarakhmonovich.pdf
http://etd.uum.edu.my/2686/2/1.Bannapov_Feruzbek_Mirzarakhmonovich.pdf
http://etd.uum.edu.my/2686/
_version_ 1644276764389670912
score 13.211869

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