S-Space College of Business Administration/Business School (경영대학/대학원) Dept. of Business Administration (경영학과) Theses (Master's Degree_경영학과)
Income Smoothing and Value of Corporate Cash Holdings
- 경영대학 경영학과
- Issue Date
- 서울대학교 대학원
- 학위논문 (석사)-- 서울대학교 대학원 : 경영학과, 2013. 8. 황이석.
- This study examines the effect of income smoothing on the market value of an additional dollar in cash holdings. I find that income smoothing negatively affects the marginal shareholder value of cash holdings. I also find that the effect of income smoothing on the value of cash holdings is more severe in firms with weak corporate governance. This result can be interpreted as that income smoothing garbles
information in earnings, so aggravated information asymmetry from income smoothing discounts liquid assets in the firm. The result is robust after controlling various
definitions of cash holdings and corporate governance.