A0336
Title: A global look into corporate cash valued in stock indices over the recent decade
Authors: Kei-Ichiro Inaba - Hitotsubashi University Business School ICS (Japan) [presenting]
Abstract: By conducting international panel-data regressions to investigate the association between the total market value of indexed companies and the book value of their cash holdings in 18 countries' representative stock indices over the period 2009-2019. It finds that corporate cash was valued positively across countries. It is found that this association strengthened in countries with better corporate governance and in those with higher R\&D investments. So did the association strengthen in the United States (U.S.) index in response to the increase in passive index funds? The association was more impactful in the U.S. stock index than in Japan's.
