Earticle

초록

영어

Using data on Korean non-financial companies (NFCs) over the sample period from 2010-2019, we find that the traditional measure of corporate cash holdings underestimates their financial assets. Firms with lower cash flow tend to invest in risky financial assets, which is inconsistent with the precautionary motive of cash holdings. We further show that distressed firms facing operational difficulties invest more in risky financial assets in response to a decrease in operating profit or sales growth rate, or an increase in short-term financial liability. We argue that NFCs invest in risky securities in pursuit of yield to make up for their lower operating performance.

목차

Abstract
Ⅰ. Introduction
Ⅱ. Related literature and hypothesis development
Ⅲ. Data and Asset Classification
1. Data and Sample
2. Asset classification and measure
Ⅳ. Empirical Findings
1. How important are risky financial assets in corporate assets?
2. What are the determinants of the financial asset portfolio?
3. Why do business conditions affect corporate financial risk taking?
V. Conclusion
References

키워드

저자

• Juran Kim [ Ph.D. candidate, Business School, Sungkyunkwan University ]
• Kyojik Roy Song [ Professor, Dept. of Fintech, Sungkyunkwan University ] Corresponding Author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  재무연구 [Asian Review of Financial Research]

• 간기

  계간

• pISSN

  1229-0351

• eISSN

  2713-6531

• 수록기간

  1988~2026

• 등재여부

  KCI 등재,SCOPUS

• 십진분류

  KDC 325 DDC 330