Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico



Main Article Content

Newton Arata
Hsia Hua Sheng
Mayra Ivanoff Lora

Abstract

This research expands on previous studies of cash holdings and their determinants by studying the relationship between the degree of internationalization and the level of corporate cash holdings. We used a sample of non-financial, publicly traded companies from Brazil and Mexico for the period from 2006 to 2010. Our results suggest that the degree of internationalization is a determinant of cash, and that cash holding increases quadratically as the degree of company internationalization grows. Such behavior was different from the North American company studies in Chiang and Wang (2011). Similar to previous studies, both Trade-off and Pecking Order predictions are relevant control variables in our model. Finally, companies held less cash on their balance sheets during the pre-crisis period.

Downloads

Download data is not yet available.


Article Details

How to Cite
Arata, N., Sheng, H. H., & Lora, M. I. (1). Internationalization and Corporate Cash Holdings: Evidence from Brazil and Mexico. Journal of Contemporary Administration, 19(spe1), 1-19. https://doi.org/10.1590/1982-7849rac20151452
Section
Articles