Publication Type
Journal Article
Version
acceptedVersion
Publication Date
2-2017
Abstract
To adapt to globalization, Chinese multinational firms have more exploitation of cash. This paper shows that Chinese multinational corporations (MNCs) do not hold significantly more cash relative to domestic firms unless these multinationals heavily relay on the foreign sales. In addition, the multinationals of non-State-Owned Enterprises (Non-SOEs) exhibit the insignificant difference in cash holdings for non-multinationals. We also find that Chinese MNCs invest more but are less profitable, especially in non-SOE subsample. Overall, we conclude that the need of cash liquidity of multinational corporations in China is different from those in U.S.
Keywords
Cash holdings, Multinationals, SOEs, China
Discipline
Asian Studies | Corporate Finance | International Business
Publication
Finance Research Letters
Volume
20
First Page
184
Last Page
191
ISSN
1544-6123
Identifier
10.1016/j.frl.2016.09.024
Publisher
Elsevier
Citation
WU, Weijun; YANG, Yang; and ZHOU, Sili.
Multinational firms and cash holdings: Evidence from China. (2017). Finance Research Letters. 20, 184-191.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5319
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.frl.2016.09.024