英文摘要 |
We set out in this study to examine the relationships between corporate governance, cash holding policies, payment decisions of excess cash holdings and the overall effects of excess cash holdings on the future value of publicly-listed firms in Taiwan. We find that the relationship between ownership and cash holdings is non-linear. The piecewise linear specifications reveal a fall and subsequent rise in cash holdings with an increase in board ownership; our findings suggest that the turning point for this effect is at the 10 per cent board ownership level. We also find that a higher collateralized ratio will have larger firm's cash holdings, whereas firms with an independent board tend to have smaller cash reserves, thereby indicating firms with weaker corporate governance structures are likely to have greater cash reserves. Further, our results demonstrate that firms with greater cash holdings may consider returning their bond debt. The capital expenditure, R&D expenditure and dividends are generally unrelated to a firm's cash position. Finally, we find that firms with greater change in cash reserves will decline their growth prospects. |