현금흐름패턴방식을 이용한 기업수명주기에 따른 보유 현금의 가치

The firm life cycle based on Dickinson (2011)’s cash flow pattern is intended to link three types of cash flow combinations with the existing life cycle theory, as the distinction between cash flows from operating, investing and financing activities captures differences in the profitability, growth, and risk of the entity. This study used 16,914 firm-year samples belonging to listed firms during 2000-2017. As a result of the analysis, the value of cash holdings was significantly different across the firms’ life cycle. More specially, there is no statistically significant difference in the value of cash holdings of firms in the growth and mature stages, whereas the value of cash holdings is lower in the introduction and declining stage compared to these two stages. And compared to the declining stage, the marginal value of firms’ cash holdings is higher in the growth stage. This study implies that the market value of cash holdings is different across firms’ life cycle using cash flow patterns, although prior studies on firm life cycles have relied on measures based on comprised financial and non-financial indicators as a portfolio.