Franklin

Cashing in for Growth [electronic resource] : Corporate Cash Holdings as an Opportunity for Investment in Japan, Sher, Galen..

Author/Creator:
Sher, Galen.
Publication:
Washington, D.C. : International Monetary Fund, 2014.
Format/Description:
Government document
Book
1 online resource (35 p.)
Series:
IMF eLibrary
IMF Working Papers: Working Paper No. 14/221
Status/Location:
Loading...

Options
Location Notes Your Loan Policy

Details

Local subjects:
Abenomics. (search)
Acquisitions. (search)
agency cost. (search)
Capacity. (search)
Capital. (search)
cash holdings. (search)
Cash planning and management. (search)
CEO duality. (search)
Corporate Governance. (search)
corporate governance. (search)
Corporate investment. (search)
Economic growth. (search)
growth. (search)
investment. (search)
Investment (including Inventories). (search)
Japan. (search)
Mergers. (search)
Payout Policy. (search)
Policy Coordination. (search)
Policy Designs and Consistency. (search)
Policy Objectives. (search)
precautionary demand. (search)
Restructuring. (search)
transaction cost. (search)
Summary:
Over the last two decades, cash holdings in nonfinancial firms around the world have increased. This phenomenon is particularly concerning in Japan, where the success of Abenomics depends on a transition from stimulus-driven to self-sustaining growth based on private consumption and investment. This paper finds that Japanese nonfinancial firms have accumulated cash at the expense of investment and dividends, hampering this transition. The evidence suggests that cash accumulation is due to financial imperfections combined with rising corporate profitability and uncertainty, while corporate governance plays only a limited role. These firms have cash holdings available for investment of about 5 percent of GDP. Policy options for encouraging the use of these cash holdings include improving firms' access to market-based financing and discouraging CEO duality.
Notes:
Description based on print version record.
Contributor:
Sher, Galen.
Other format:
Print Version:
ISBN:
1498322174:
9781498322171
ISSN:
1018-5941
Publisher Number:
10.5089/9781498322171.001
Access Restriction:
Restricted for use by site license.