유통기업의 현금보유수준이 기업가치에 미치는 영향

The Effects of Cash Holding Level on Firm Value: Focusing on Distribution Firms Listed on the KOSDAQ Market

Purpose - The Coronavirus disease 2019 crisis has been triggering great economic difficulties to Korean firms. Specifically, distributors have been facing bankruptcy or financial difficulties because of liquidity constraints caused by the government s social distancing policy for quarantine and a sharp drop in overseas travel. The present study aimed to verify whether cash holding level affects firm value when the firm has been suffering from severe financial difficulties. Design/Methodology/Approach - In this study, a total of 1,046 data were selected and analyzed only for distribution-related firms listed on the KOSDAQ market from 2011 to 2020, when international accounting standards have been required for firms. Findings - First, the firm value of a group with a high cash holding level was significantly higher than that of another group with a low cash holding level, thereby indicating that an increase in the level of cash holdings can positively influence firm value in a situation where uncertainty is high. Second, the cash holding level had a positive effect on firm value, thereby indicating that cash holding level can positively influence firm value. Third, export ratio has a positive effect on firm value. Therefore, the export of distributors positively influences firm value. Research Implications - Korean distributors efforts to increase cash holdings may enhance their firm value. In addition, Korean distributors use it as an important tool to secure financial health by maintaining sufficient liquidity.