Market value of 10-K readability and corporate cash holdings

被引：5
|
作者：
Choi, Sanghak [1 ]
Chung, Chune Young [2 ]
Kim, Daejin [1 ]
Lee, Junyoup [1 ]
机构：
[1] Ulsan Natl Inst Sci & Technol, Sch Business Adm, UNIST Gil 50, Ulsan 44919, South Korea
[2] Chung Ang Univ, Sch Business Adm, Seoul 06974, South Korea
来源：
ECONOMICS LETTERS | 2021年 / 201卷
基金：
新加坡国家研究基金会;
关键词：
Readability; Marginal value of corporate cash holdings;
D O I：
10.1016/j.econlet.2021.109796
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We investigate the effect of 10-K readability on the association between stock returns and changes in cash holdings and find that readability significantly increases the marginal value of cash holdings (MVCH). The value spread for firms with high-readability reports is about US $0.08 per dollar of cash. This effect is stronger for firms with more severe managerial agency problems, less external monitoring, and greater financial constraints. Additional analyses suggest that the direction of causality runs from readability to the MVCH. We posit that more readable 10-Ks facilitate investors' monitoring, inducing firms' efficient cash use. (c) 2021 Elsevier B.V. All rights reserved.
引用
收藏
页数：5
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