The effect of cash holdings on firm value an empirical study of construction industry
Abstract
This study tests the effect of cash holdings of cash holding on firm value in Vietnam construction industry during the period from 2008 to 2014. The result shows some statistical evidence about the concave relationship between cash holdings and firm value in the construction sector. In addition, those firms can increase their value by maintaining the cash holdings at optimal level 14.8%.
Keywords: Cash holdings, firm value, GMM, concave relationship, optimal cash holdings level.
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