| Author: | Cheung, Francis |
| Title: | Cash holding through crisis : a Hong Kong study |
| Advisors: | Tong, Wilson (AF) |
| Degree: | D.B.A. |
| Year: | 2019 |
| Subject: | Hong Kong Polytechnic University -- Dissertations Cash management Corporations -- Cash position Cash flow Corporations -- China -- Hong Kong |
| Department: | Faculty of Business |
| Pages: | iv, 68 pages : color illustrations |
| Language: | English |
| Abstract: | This thesis aims to understand how firms, especially financially constrained firms, make cash holding and investment decisions during the financial crisis period of 2008 by using Hong Kong listed company data as sample. To examine how Hong Kong firms change their decisions during the crisis period, the full sample period of 2001 - 2015 was divided into two periods: the pre-crisis period of 2001 - 2007 and the crisis period of 2008 - 2015. The cash holdings, cash savings, and investments of Hong Kong listed companies were contrasted between these two periods. The research finds out that Hong Kong listed companies indeed hold more cash and invest less during the crisis period. Firms change investment strategies according to their financial capabilities during the crisis period. Financially unconstrained firms change their investment strategy from investing "freely" without much internal and external financial constrains before crisis to relying on internal cash reserves during crisis, meanwhile financially constrained firms turn to withholding investments. During crisis, in face of a decrease in cash flows from regular business operations and an increase in macro uncertainties, financially constrained firms tend to hold onto more cash and reduce investment, leading to an increase in cash flow sensitivity of cash and cash flow sensitivity of investment. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 991022289506703411.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 595.78 kB | Adobe PDF | View/Open |
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