Firm Life Cycle,Cash Holdings and Firm’s Performance

• Main Authors: Peng Chia-Wei, 彭嘉衛
• Other Authors: Cheng Che Hui
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/96873997792717153341

碩士 === 東吳大學 === 會計學系 === 102 === Recently, rapid changes in the international economic environment, and enhance corporate financial structure cash adapt to the economic environment, so the company holds more cash position may be able to prevent future. Although the company holds cash increase financial liquidity, but may damage the company’s value, and the firm life cycle stages may have different needs for cash. Therefore, this study discusses issues related to cash holding, focusing on the value of cash holdings and excess cash and future performance, and firm life cycle factors to consider two models. The empirical results show the value of cash holdings and firm life cycle inverted U-shaped relationship, which means when the company in the introduction stage, the lower value of cash holdings until growth stage is the highest, while reducing value after maturity. In addition, when the company in the growth stage holds excess cash to enhance the company’s future performance, and the remaining stages of the life cycle of this relationship do not be observed.