Stock Liquidity Risk and Cash Preservation

Shih Kuo Yeh; Wan Ru Yang; Ren Raw Chen; Chung Ying Yeh

doi:10.1142/S0219091522500321

Stock Liquidity Risk and Cash Preservation

Shih Kuo Yeh
, Wan Ru Yang^*
, Ren Raw Chen
, Chung Ying Yeh

^*Corresponding author for this work

Research output: Contribution to journal › Journal Article › peer-review

1 Scopus citations

Abstract

This paper investigates the relationship among liquidity risk, cash-holdings, financial constraints, and capital-raising costs. Our results show that cash preservation has different impacts on the liquidity risk explained by different aspects. The liquidity risk is negatively related with cash holdings. More financial constraints increase the liquidity risk. The firms with low capital-raising costs hold more cash because of liquidity needs.

Original language	English
Article number	2250032
Journal	Review of Pacific Basin Financial Markets and Policies
Volume	25
Issue number	4
DOIs	https://doi.org/10.1142/S0219091522500321
State	Published - 01 12 2022
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2022 World Scientific Publishing Co.

Keywords

capital-raising costs
Cash holdings
financial constraints
liquidity risk

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10.1142/S0219091522500321

Cite this

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title = "Stock Liquidity Risk and Cash Preservation",

abstract = "This paper investigates the relationship among liquidity risk, cash-holdings, financial constraints, and capital-raising costs. Our results show that cash preservation has different impacts on the liquidity risk explained by different aspects. The liquidity risk is negatively related with cash holdings. More financial constraints increase the liquidity risk. The firms with low capital-raising costs hold more cash because of liquidity needs.",

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AU - Yeh, Chung Ying

PY - 2022/12/1

Y1 - 2022/12/1

N2 - This paper investigates the relationship among liquidity risk, cash-holdings, financial constraints, and capital-raising costs. Our results show that cash preservation has different impacts on the liquidity risk explained by different aspects. The liquidity risk is negatively related with cash holdings. More financial constraints increase the liquidity risk. The firms with low capital-raising costs hold more cash because of liquidity needs.

AB - This paper investigates the relationship among liquidity risk, cash-holdings, financial constraints, and capital-raising costs. Our results show that cash preservation has different impacts on the liquidity risk explained by different aspects. The liquidity risk is negatively related with cash holdings. More financial constraints increase the liquidity risk. The firms with low capital-raising costs hold more cash because of liquidity needs.

KW - capital-raising costs

KW - Cash holdings

KW - financial constraints

KW - liquidity risk

UR - https://www.scopus.com/pages/publications/85143528162

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M3 - 文章

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Stock Liquidity Risk and Cash Preservation

Abstract

Bibliographical note

Keywords

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