A Study on the Pattern Changes and Determinants of Corporate Cash Holding

Abstract

This study examines what changes and impacts have brought to the corporate cash holding after the financial crisis. The main findings can be summarized by two parts. First, the recent high increase in cash holding is only found in few companies, meaning that the level of the overall ratio has not risen. Second, Korean companies tend to have a higher ratio of cash holding when they have more uncertainty about their business performances. The higher the uncertainty in overall business performances also has some effects on the cash holding patterns of the Korean companies.

Keywords

• 재무구조(capital structure)
• 유동성(liquidity)
• 위험관리(risk management)