Publication Type

Journal Article

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

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org./10.1016/j.frl.2016.09.024

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