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Volume 14
Issue 3
Online publication date 2018-06-14
Title Determinants of corporate cash holding: evidence from UK listed firms
Author Phi Long Tran, Thu Phuong Ta, Duy Minh Vu, Duc Hoang Le
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.
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Keywords Cash holding, trade-off theory, pecking order theory, free cash flow theory
Pages 561-569
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