Earnings quality and corporate cash holdings

被引：60

作者：

Sun, Qian ^{[1
]}

Yung, Kenneth ^{[2
]}

Rahman, Hamid ^{[3
]}

机构：

[1] Kutztown Univ Penn, Kutztown, PA 19530 USA

[2] Old Dominion Univ, Norfolk, VA 23529 USA

[3] Alliant Int Univ, San Diego, CA 92127 USA

来源：

ACCOUNTING AND FINANCE | 2012年 / 52卷 / 02期

关键词：

Earnings quality; Earnings management; Cash holdings; Value of cash; G31; G32; MARKET PERFORMANCE; FIRM VALUE; MANAGEMENT; GOVERNANCE; ACCRUALS; INFORMATION; EQUITY; COSTS; DETERMINANTS; INCENTIVES;

D O I：

10.1111/j.1467-629X.2010.00394.x

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Poor earnings quality exacerbates information asymmetry between internal and external stakeholders of a firm. Agency considerations then persuade investors to discount the value of corporate cash holdings out of concern about the inappropriate use of funds. In this study, we show that poor earnings quality has a negative impact on the value of corporate cash holdings and a positive impact on the level of cash reserves. We find that the negative effect of poor earnings quality either neutralizes or more than offsets the positive effect of excess cash on firm value. Our results are robust to several measures of earnings quality and model specifications.

引用

页码：543 / 571

页数：29

共 56 条

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