Foreign Investors and Cash Holdings
碩士 === 元智大學 === 會計學程 === 99 === Cash is one of important aspects for running a business. In addition, Taiwan government has deregulated its restrictions on foreign investment in local securities market since 1991. This study examines the impact of the involvement of foreign investment on a firm’s ca...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Others |
| Language: | en_US |
| Published: |
2011
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| Online Access: | http://ndltd.ncl.edu.tw/handle/51303102412850506471 |
| Summary: | 碩士 === 元智大學 === 會計學程 === 99 === Cash is one of important aspects for running a business. In addition, Taiwan government has deregulated its restrictions on foreign investment in local securities market since 1991. This study examines the impact of the involvement of foreign investment on a firm’s cash holding and the value of cash holdings. I use publicly listed Taiwan companies as my sample from 1991 to 2008. I find that foreign ownership positively affect the degree of a company’s cash holding. The result shows that firms with higher foreign ownership possess more cash holdings. Furthermore, I also find that foreign ownership positively affect the company’s value of cash holdings. The results show that firms with foreign ownership have a marginal value of cash of $4.84. The overall results suggest that foreign investors play a monitoring role to improve corporate governance and to influence the firm’s cash policy and improve the value of cash holdings in Taiwan.
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