기업의 현금보유와 R&D 스무딩 간의 관계

In this paper, we analyse empirically the relations between cash holdings and R&D smoothing of firms listed on Korea Securities Market of Korea Exchange. The main results of this study can be summarized as follows. The financially constrained firms use much more cash holdings to smooth R&D investment than the financially unconstrained firms. That is, cash holdings are much more important for the financially constrained firms than the financially unconstrained firms. The financially constrained firms have strong incentives to build and manage a buffer stock of cash liquidities to smooth R&D investment, because adjustment costs altering the path of R&D investment are very high. Financial constraints are measured by proxy variables such as firm age and market timing. This paper presents evidence that the young firms use more cash holdings to smooth R&D investment than the mature firms, because they are likely to face financial constraints. Firms use more cash holdings to smooth R&D investment during the bear market, because stock issues decline dramatically in this period. Firms use more cash holdings to smooth asset-counted R&D investment than cost-counted R&D investment. Asset-counted R&D investment is counted in intangible assets on Balance Sheet, whereas cost-counted R&D investment is counted in cost on Income Statement. These results suggest that R&D smoothing with cash holdings is very important for understanding cash management.