Analysts' forecast optimism and cash holding: Evidence from China

被引：2
|
作者：
Liu, Xingyu [1 ,2 ]
Loang, Ooi Kok [2 ]
机构：
[1] Zhoukou Normal Univ, Off state owned assets management, Zhoukou 466000, Henan, Peoples R China
[2] City Univ Malaysia, City Grad Sch, Petaling Jaya 46100, Malaysia
来源：
FINANCE RESEARCH LETTERS | 2023年 / 57卷
关键词：
Analyst forecast optimism; Financing constraints; Cash holdings;
D O I：
10.1016/j.frl.2023.104237
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Analysts play an important role as information intermediaries. In this paper, we empirically analyze the impact of analysts' forecast optimism on firms' cash holdings. Based on China's Ashare listed companies from 2011-2021 as the research sample, we find that analyst forecast optimism significantly decreases the company's cash holdings. Meanwhile, based on a cash-cash flow sensitivity model, we show that analyst forecast optimism reduces the company's financing constraint and further makes the company's cash holdings decrease. Moreover, the larger (or older) the firm, the smaller the negative effect of analyst optimism on cash holdings.
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页数：7
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