보호막효과, R&D 투자 및 현금보유변동

We demonstrate theoretically and empirically that strategic considerations are important in shaping cash policies on R&D investment and the opportunity incentive of ultimate stockholder. Cash holdings reduce the dependence of R&D investment on external financing with information unequilibrium. Based on a cash model theory, this study predicts that the R&D investment affect positively the level variance of cash holdings, and also corporate with opportunity incentive of ultimate stockholder tend to increase the level variance of cash holdings. The study shows that corporate’s equilibrium cash holdings are related to the R&D investment and that this relation is affected by the degree of opportunity incentive of ultimate stockholder that corporate face. This paper tests our model using a sample of corporate that are direct estimation measure in R&D investment and the opportunity incentive of ultimate stockholder. Consistent with the strategic motive for hoarding cash, This paper shows that the variable of corporate’s cash holdings are positively affected by R&D investment and the opportunity incentive of ultimate stockholder. We conclude that the empirical evidences found in this paper are robust regardless of statical analysis methods. The findings suggest that R&D investment and the opportunity incentive of ultimate stockholder play a key role in decision making of cash holdings policy of corporate.