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Media Coverage and Cash Holding Adjustments
( Hyungjin Cho ) , ( Meeok Cho ) , ( Sehee Kim )
UCI I410-ECN-0102-2022-300-000707238
* 발행 기관의 요청으로 무료로 이용 가능한 자료입니다.

This paper investigates how companies move their cash holdings as a response to media coverage. We find that firms with more media coverage and with a more negative tone of media attention adjust their cash holdings faster toward target levels. This finding is stronger for firms with larger cash holdings than target levels and firms not affiliated with business groups. Lastly, we find that such reductions in cash holdings are associated with increases in investment and debt repayments. Overall, these findings support the monitoring role of the media in improving the efficiency in cash management.

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