Cash Holdings and Firm Value During Turbulent Times Canadian Evidence

DOI: 10.5176/2251-1997_AF15.22

Authors: Q. Mei and G. Srinivasan

Abstract:

The effect of excess cash holdings on the value of a firm has attracted the attention of researchers as well as activist shareholders as in the case of Apple Inc. This paper attempts to address the question of Canadian Context. Tobin’s Q is sued as a measure of firm value and the effect of cash holding on Tobin’s Q is studied during the pre and post sub-prime crisis period.

Keywords: Cash Holding, Tobin's Q, Financial crisis, Canadian firms