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Why do French firms hold cash?

dc.contributor.authorSaddour, Khaoula
dc.date.accessioned2009-07-22T13:26:20Z
dc.date.available2009-07-22T13:26:20Z
dc.date.issued2006
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/1307
dc.descriptionTexte de la conférence accessible à l'adresse http://basepub.dauphine.fr/xmlui/handle/123456789/1205en
dc.language.isoenen
dc.subjectfirm market valueen
dc.subjectgrowth opportunitiesen
dc.subjectCash holdingsen
dc.subject.ddc338.5en
dc.subject.classificationjelD92en
dc.titleWhy do French firms hold cash?en
dc.typeCommunication / Conférence
dc.description.abstractenThis paper investigates the determinants of the cash holdings of French firms over the period 1998- 2002, using the trade-off theory and the pecking order theory. We show that French firms increase their cash level when their activities are risky and the levels of their cash flow are high, and reduce it when they are highly leveraged. Growth companies hold higher cash levels than mature companies. For growth companies, there is a negative relation between cash and the following firm's characteristics: size, level of liquid assets and short-term debt. The cash level of mature companies increases with their size, their investment level, and the payout to their shareholders in the form of dividends or stock repurchases, and decreases with their trade credit and their expenses on research and development. Further results indicate that the firm's market value as measured by Tobin's Q increases with its cash level. This positive relation is stronger for growth companies than for mature companies.en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelMicroéconomieen
dc.relation.conftitle19th Australasian Finance and Banking Conferenceen
dc.relation.confdate2006
dc.relation.confcitySydneyen
dc.relation.confcountryAustralieen


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