Therefore, the purpose of this work is to find out how cash holdings have developed over time and what company-specific factors influences them. In this context, we examine the period from 1988 to 2021, following closely the approach of Bates. The main question is whether the findings from the literature are transferable to Canadian companies or if there are differences.
To address this question, we will first briefly review the literature for the theoretical background in chapter 2, which we will refer to in our later empirical analysis. In chapter 3, we outline the composition and origin of our dataset, as well as the methodology. Chapter 4 looks at the development of cash and leverage holdings over the whole period. Section 5 examines whether there are sub-population specific differences in our dataset. In chapter 6, we utilize regression models of the cash ratios to see which corporate indicators have an impact on the cash ratios. Section 7 considers whether the agency theory has an impact on cash holdings. We conclude in chapter 8.
Cash holdings are one of the most important components of a company. As the cash holdings of U.S. companies have increased remarkably over the last decades, the question arises whether this is also true for the geographic neighboring country Canada. Therefore, this thesis analyzes the corporate cash holdings of Canadian public companies. While the cash holdings of U.S. companies are well studied on a broad scale in the finance literature and Opler, there are only a few publications on Canada.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature Review
- Methodology
- Development of Cash and Leverage Holdings
- Cohort Specific Trends in Cash Holdings
- Determinants of Cash Holdings
- The Value of Cash Holdings
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to explore the relationship between cash holdings and firm value in a Canadian context. It examines how cash holdings evolve over time, identifies key determinants of cash holdings, and ultimately assesses the impact of cash holdings on firm value.
- Trends in cash holdings among Canadian firms
- Determinants of cash holdings, including firm size, industry, and financial performance
- The relationship between cash holdings and firm value
- The impact of cash holdings on firm performance
- The role of leverage in cash holdings decisions
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the study's topic and research questions, outlining the importance of cash holdings in corporate finance and the specific focus on Canadian firms.
- Literature Review: This chapter reviews the existing literature on cash holdings, focusing on theoretical frameworks, empirical studies, and key findings relevant to the research questions.
- Methodology: This chapter describes the research methodology used in the study, including the data sources, sample selection, and econometric techniques employed to analyze the data.
- Development of Cash and Leverage Holdings: This chapter examines the historical evolution of cash holdings and leverage ratios among Canadian firms over a specific time period.
- Cohort Specific Trends in Cash Holdings: This chapter delves into the trends in cash holdings among different cohorts of firms, potentially based on firm size, industry, or other characteristics.
- Determinants of Cash Holdings: This chapter investigates the factors influencing cash holdings, using regression analysis to identify the most significant determinants, such as firm size, profitability, and investment opportunities.
Schlüsselwörter (Keywords)
This study focuses on key terms and concepts related to corporate finance, such as cash holdings, leverage, firm value, firm size, profitability, investment opportunities, and empirical analysis. It draws upon research related to the determinants of cash holdings and the impact of cash holdings on firm performance within the Canadian context.
- Quote paper
- Maximilian Heilborn (Author), 2023, Cash Holdings of Canadian Public Companies, Munich, GRIN Verlag, https://www.grin.com/document/1322901
