TY  - JOUR
AU  - Horioka, Charles Y
AU  - Terada-Hagiwara, Akiko
TI  - Corporate Cash Holding in Asia
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 19688
PY  - 2013
Y2  - December 2013
DO  - 10.3386/w19688
UR  - http://www.nber.org/papers/w19688
L1  - http://www.nber.org/papers/w19688.pdf
N1  - Author contact info:
Charles Yuji Horioka
Research Institute for Economics
 and Business Administration
Kobe University
2-1, Rokkodai, Nada
Kobe 657-8501
JAPAN
Tel: +81-78-803-7270
Fax: +81-78-803-7059
E-Mail: horioka@rieb.kobe-u.ac.jp

Akiko Terada-Hagiwara
Macroeconomics Research Division
Economics Research and
Regional Cooperation Department
 Asian Development Bank
Manila, Philippines
E-Mail: ahagiwara@adb.org
AB  - In this paper, we analyze the determinants of corporate saving in the form of changes in the stock of cash for 11 Asian economies using firm-level data from the Oriana Database for the 2002-2011 period. We find some evidence that cash flow has a positive impact on the change in the stock of cash, which suggests that Asian firms are borrowing constrained and that they save more when their cash flow increases so that they will be able to finance future investments. Moreover, we find in the developed economy sample that, as expected, cash flow has a positive impact on the change in the stock of cash only in the case of the smallest firms, which are more likely to be borrowing constrained, and find in the developing economy sample that, as expected, the positive impact of cash flow on the change in the stock of cash declines with firm size. In addition, we find that the cash flow sensitivity of cash declined after the global financial crisis. Finally, we find some evidence that Tobin's q has a positive impact on the change in the stock of cash.
ER  -