How firms manage their cash flows: an examination of diversification’s effect

被引：4
作者：
Nguyen T. [1 ]
Cai C.X. [2 ]
McColgan P. [3 ]
机构：
[1] Portsmouth Business School, University of Portsmouth, Portsmouth
[2] Leeds University Business School, University of Leeds, Leeds
[3] Department of Accounting and Finance, University of Strathclyde, Glasgow
来源：
Review of Quantitative Finance and Accounting | 2017年 / 48卷 / 3期
关键词：
Diversification; Financial management; Financing cash flow; Free cash flow; Liquidity;
D O I：
10.1007/s11156-016-0565-1
中图分类号：
学科分类号：
摘要：
We extend recently documented evidence that diversified firms hold significantly less cash than specialized firms to consider differences in how diversified and specialized firms adjust their cash flows to achieve their target cash balance. We find that diversified firms have higher free cash flows as a result of equal operating cash flows and lower investment in comparison to specialized firms. Diversified firms save less cash by placing less reliance on external financing; by issuing less debt and equity, and distributing higher cash dividends. Our findings support the hypothesis that diversified firms are able to hold less precautionary cash as they are in better position to finance investment opportunities internally from operating cash flows. © 2016, Springer Science+Business Media New York.
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收藏
页码：701 / 724
页数：23
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