Cashing in for Growth: Corporate Cash Holdings as an Opportunity for Investment in Japan
| Autor: | Galen Sher |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
media_common.quotation_subject
Corporate governance Agency cost Monetary economics Investment (macroeconomics) Cash planning and management Corporate investment Economic growth Precautionary demand Investment Japan Abenomics cash holdings growth transaction cost agency cost CEO duality holdings transaction Payout Policy Abenomics Cash General Earth and Planetary Sciences Dividend Profitability index Business General Environmental Science media_common Public finance |
| Zdroj: | IMF Working Papers. 14:1 |
| ISSN: | 1018-5941 |
| DOI: | 10.5089/9781498322171.001 |
| Popis: | Over the last two decades, cash holdings in nonfinancial firms around the world have increased. This phenomenon is particularly concerning in Japan, where the success of Abenomics depends on a transition from stimulus-driven to self-sustaining growth based on private consumption and investment. This paper finds that Japanese nonfinancial firms have accumulated cash at the expense of investment and dividends, hampering this transition. The evidence suggests that cash accumulation is due to financial imperfections combined with rising corporate profitability and uncertainty, while corporate governance plays only a limited role. These firms have cash holdings available for investment of about 5 percent of GDP. Policy options for encouraging the use of these cash holdings include improving firms’ access to market-based financing and discouraging CEO duality. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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