현금보유에 영향을 미치는 요인에 관한 연구: 한국 뷰티산업에서의 증거

This study examines the determinants of cash holdings for firms in the beauty industry that are listed on the Korea Exchange. The sample comprises 434 firm-year observations form 2001 to 2021. We employed both a static model that assumes firms can instantaneously adjust towards the target cash level and a dynamic model that considers the firm behavior as a partial adjustment to a target cash level. The dependent variable used in the models is cash holdings and the explanatory variables are cash flow, firm size, leverage, growth opportunity, capital expenditure, working capital, and asset tangibility. The key results of the study are as follows. First, using the static model for the whole period, we found that cash flow, leverage, growth opportunity, working capital, bank debt, and asset tangibility had a significant effect on cash holdings of the firms. Second, using a dynamic model for the full period, we found that leverage, working capital, bank debt, and, asset tangibility were determinants of cash holdings of the firms. Third, regardless of the type of estimation model used, the estimation results of the period before the global financial crisis of 2007 to 2008 were different from the results of the period after the crisis. This suggests that a global financial crisis can affect the relationship between cash holdings and explanatory variables. The results of the study can be useful in understanding the factors affecting cash holdings of the firms. To our best knowledge, the study is the first attempt to examine the determinants of cash holdings of firms belonging to the beauty industry in South Korea. We expect the study to contribute to promoting further related studies dealing with cash policy in the beauty industry.