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korean management review - Vol. 53 , No. 2

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[ Article ]
korean management review - Vol. 53, No. 2, pp. 493-515
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2024
Received 18 Jan 2024 Accepted 29 Feb 2024
DOI: https://doi.org/10.17287/kmr.2024.53.2.493
Dividends, Cash Holdings and Firm Value
Sang Kwon Cha
(First Author) Calvin University (sgcha01@daum.net)
배당, 현금흐름 및 기업가치의 관계

Copyright 2024 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.


Funding Information ▼ Calvin University

Abstract

This study analyzed whether the relationship between a company's cash holdings and firm value differs depending on dividends using KOSPI and KOSDAQ listed firms from 2010 to 2020. I found dividends showed a negative correlation with firm value, and cash holdings showed a positive correlation with firm value. However, in dividend-paying companies, the level of cash holdings has a negative relationship with firm value, and the presence of dividends appears to weaken the relationship between cash holdings and firm value. While demand for dividends has recently been increasing in the Korean capital market, there are implications for capital market investors in that the relationship between a company's cash holdings and corporate value is changing depending on dividends.


Keywords: Dividends, Cash Holdings, and Firm Value

Acknowledgments

This research is supported by Calvin University Research Fund (in 2024).

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∙ The author Sang Kwon Cha is currently employed as a assistant professor in the Department of Global Culture Industry Management. He obtained a Ph.D. in Accounting from Hanyang University. He has been conducting Valuation, Capital Market related research.