Cash holding and firm value: a meta-analysis

Domenico Rocco Cambrea, Maurizio La Rocca, Elvira Tiziana La Rocca, Salvatore Casciaro


The paper presents a meta-analysis between cash holdings and firm value. Referring to a sample of 290 studies, the results show that the holding of cash leads to an increase in firm performance. Moreover, the study finds that the relationship resulted moderated by several factors. In particular, the positive effect of cash reserves is amplified when the value of the firm is measured by a proxy of market value, when studies refer to recent years and when firms operate in specific institutional contexts. On the contrary, the effect is reduced in the firms with low growth opportunity, in published studies and in those which employ econometric techniques that control for endogeneity problems.

Parole chiave

Cash holdings, Firm Value, Meta-Analysis, Meta-Regression

ISSN: 1971-5293

Esperienze d'Impresa, Reg. Tribunale Salerno n.875 del 3/11/1993