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Corporate cash holdings and life-cycle
Journal of the Korean Data & Information Science Society 2017;28:1109-23
Published online September 30, 2017
© 2017 Korean Data & Information Science Society.

Kyeong Je Jo1 · Joon Hyup Song2

12Department of Business Administration, Andong National University
Correspondence to: Joon Hyup Song
Professor, Department of Business Administration, Andong National University, Geongbuk 760-749, Korea. E-mail:
Received August 29, 2017; Revised September 21, 2017; Accepted September 21, 2017.
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
This paper examines there is any differences among determinants of cash holdings and marginal value of cash depending on the life-cycle of firm. To accomplish these objective, we collect financial and market data of KRX listing firms for a period of 2001-2013. We present evidence of significant effect of life-cycle on the cash holdings determinants and marginal value of cash. Specially, the effect of investment opportunity related variable are varies through life-cycle. The results also suggest that marginal values of cash in the introduction stage and exit stage is higher than those in other stages. Overall, this means that the motive of cash holdings in Korean firms is weak. and shareholders place different value on a firm’s cash holdings depending on the lifecycle.
Keywords : Cash hodings, corporate life-cycle, fixed effect model, marginal value of cash