Three essays on corporate finance
| dc.contributor.author | Yan, Meng | |
| dc.contributor.examiningcommittee | Zhang, Ying (Accounting and Finance) | |
| dc.contributor.examiningcommittee | Yang, Po (Statistics) | |
| dc.contributor.examiningcommittee | Otchere, Isaac (Carleton University) | |
| dc.contributor.supervisor | Zheng, Steven Xiaofan | |
| dc.contributor.supervisor | Gao, Ya | |
| dc.date.accessioned | 2024-01-08T15:16:19Z | |
| dc.date.available | 2024-01-08T15:16:19Z | |
| dc.date.issued | 2023-12-21 | |
| dc.date.submitted | 2023-12-22T01:55:59Z | en_US |
| dc.date.submitted | 2024-01-05T18:15:36Z | en_US |
| dc.degree.discipline | Management | en_US |
| dc.degree.level | Doctor of Philosophy (Ph.D.) | |
| dc.description.abstract | The thesis consists of three essays. In the first essay, we investigate the relation between excess cash holdings and future stock returns using a sample of firms in developed markets and emerging markets. The results show a positive relation between excess cash and future returns in developed markets but not in emerging markets. In developed markets, firms with higher excess cash have higher market betas and invest more in the future. Furthermore, the positive relation between excess cash and future stock returns is driven by rising market states. In contrast, we do not find similar patterns in emerging market. Overall, the evidence suggests that excess cash holdings proxy for growth opportunities in developed markets but not in emerging markets. In the second essay, we investigate corporate cash holdings in developed countries. This research assesses the cash difference between firms in developed Europe and the US and seeks to account for this difference. Results indicate that developed European firms hold less cash than are US firms, and this is largely explained by regional differences in intangible assets. We further find that the difference in intangible assets between developed Europe and the US is mainly driven by sector specialization. This finding supports literature that US companies outperform European firms in high R&D intensity sectors. In the third essay, we examine the relation between corporate debt maturity and cross-sectional equity returns in non-US markets. Prior research has shown that the maturity structure of corporate debt matters in explaining the equity risk premium of US stocks. In the US, debt refinancing intensity is associated with a positive risk premium. This essay re-evaluates this relation in international stocks. We find a similar positive relation between debt refinancing intensity and equity risk premium in developed European markets but not in emerging Asian markets. In developed Europe, the positive relation is driven by firms with low levels of information asymmetry. The results are consistent with the theory that investors demand compensation for risks associated with refinancing of short-term debt, especially for firms where short-term debt plays a limited role in reducing agency risks. | |
| dc.description.note | February 2024 | |
| dc.identifier.uri | http://hdl.handle.net/1993/37948 | |
| dc.language.iso | eng | |
| dc.rights | open access | en_US |
| dc.subject | Corporate Governance | |
| dc.subject | Investor Protection | |
| dc.subject | International Study | |
| dc.title | Three essays on corporate finance | |
| dc.type | doctoral thesis | en_US |
| local.subject.manitoba | no |