An Empirical Study on Listed Company’s Value of Cash Holdings: An Information Asymmetry Perspective
Table 2
Definitions of research variables.
Variable
Definition
Calculation method
is the actual rate of return in an accounting year, and is benchmark rate of return
is the actual annual rate of return on the stock with dividend included in the return, and is the circulation-market-value-weighted actual annual rate of return on the industry
Earnings
Net asset
Difference between total assets and cash assets
Interest expense
Measured by financial expenses
Common stock dividends
Measured by cash dividends
Cash at previous year end
Market value financial leverage
Total liabilities/total asset
Net financing
Net cash inflow from financing
High
High financial constraints
Takes 1 for the top 20% ASY values, 0 for others
Low
Low financial constraints
Takes 1 for the bottom 20% ASY values, 0 for others