The market value of cash holdings from related-party sales: The role of source of cash flows

被引：0
|
作者：
Jung, Sun-Moon [1 ]
Jung, Taejin [2 ]
Kim, Natalie Kyung Won [3 ,5 ]
Park, Sohee [4 ]
机构：
[1] Dongguk Univ, Dept Accounting, Seoul, South Korea
[2] IE Univ, Dept Accounting & Management Control, Madrid 28006, Spain
[3] Univ Seoul, Sch Business Adm, Seoul, South Korea
[4] Seoul Natl Univ, Dept Business Adm, Seoul, South Korea
[5] Univ Seoul, Seoul 02504, South Korea
来源：
ACCOUNTING AND FINANCE | 2024年
关键词：
corporate governance; market value of cash holdings; related-party transactions; resource allocation; source of cash flows; FINANCIAL STATEMENT COMPARABILITY; GROUP-AFFILIATED COMPANIES; CORPORATE GOVERNANCE; BUSINESS GROUPS; AGENCY COSTS; FIRMS HOLD; TRANSACTIONS; CONSTRAINTS; INFORMATION; INVESTMENT;
D O I：
10.1111/acfi.13241
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper finds that investors evaluate cash holdings differently based on the source of cash flows. Using cash flows from related-party sales as a proxy for diverse sources, we find that shareholders discount the value of cash holdings for firms with higher cash flows from related-party sales. We find that firms use related-party sales cash flows differently; cash flows from related-party sales are more likely to be retained as internal cash reserves or distributed as dividends, rather than utilised for necessary investments. We further document a negative valuation of investments for firms with more related-party sales.
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页数：34
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