Corporate liquidity and firm value: evidence from China's listed firms

Jinmin Du, Fei Wu, Xingyun Liang, R. Chen, J. Wu, F. Xiao
2016 SHS Web of Conferences  
The value of liquidity is a promising area for research. This paper analyzes the correlation between corporate liquidity and firm value by using evidence from China's listed firms. This paper also investigates the relation among corporate liquidity, R&D and firm size. The authors find that firm's sufficient liquidity can increase its market value. However, corporate liquidity has insignificant effect on firm's R&D. What's more, the authors further find that corporate liquidity also has
more » ... y also has diseconomies of scale. Excess corporate liquidity may adversely affect market value of large firms.
doi:10.1051/shsconf/20162401013 fatcat:qms3cw3xsjbqlkk6kuzwidc4j4