Cash holdings and market share growth. European evidence

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi
dc.contributor.author Lehtinen, Heini
dc.date.accessioned 2011-11-14T11:24:10Z
dc.date.available 2011-11-14T11:24:10Z
dc.date.issued 2011
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/755
dc.description.abstract CASH HOLDINGS AND MARKET SHARE GROWTH. EUROPEAN EVIDENCE PURPOSE OF THE STUDY The purpose of this thesis is to study whether a firm’s high cash holdings can lead to future market share gains in the product markets. I study the cash holdings and market share changes in the industry-related terms. I am also interested in finding differences in the impact between countries and industry and rival characteristics. Last, I study how the cash holdings have impacted the market share changes in the recent financial crisis from 2008-2009. DATA My data consist of financial statement data from European public firms. I use data from 22 European countries. All the observed firms are manufacturing companies denoted with SIC codes from 2000 to 3999. The time period of the study is from 1990 to 2009. For the study of the recent financial crisis I use data from 2008 to 2009. All the data is retrieved from Thomson One Banker. RESULTS I use the instrumental variable approach to avoid reversal causality between the cash holdings and future market share changes. From the total observed time period I find no evidence for cash holdings to improve a firm’s market share in the following years. Neither the industry or rival characteristics make difference for the results. When I estimate the cash holdings impact on future market share changes in the recent financial crisis, I find significant evidence. For example, a one standard deviation from the industry-average cash holdings increases the future market share with 1.6 percent during a financial crisis. en
dc.format.extent 72
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Cash holdings and market share growth. European evidence en
dc.type G2 Pro gradu, diplomityö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Economics en
dc.contributor.department Department of Finance en
dc.contributor.department Rahoituksen laitos fi
dc.subject.keyword cash
dc.subject.keyword cash holdings
dc.subject.keyword market share
dc.subject.keyword manufacturing firms
dc.subject.keyword financial crisis
dc.identifier.urn URN:NBN:fi:aalto-201111181667
dc.type.dcmitype text en
dc.programme.major Finance en
dc.programme.major Rahoitus fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon rahoitus
dc.subject.helecon financing
dc.subject.helecon kassanhallinta
dc.subject.helecon cash management
dc.subject.helecon teollisuus
dc.subject.helecon industry
dc.subject.helecon yritykset
dc.subject.helecon companies
dc.subject.helecon talouskriisi
dc.subject.helecon economic crisis
dc.ethesisid 12623
dc.date.dateaccepted 2011-09-06
dc.location P1 I


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