invitation

We invite you to cooperation in our research. Research of the project is in the center of current scientific main stream works with high importance and relevance of the results. Minton (1999) documents relation of higher cash flow volatility and lower average levels of investment in capital expenditures, what is also a key problem in proposed research. Level of healthcare institution financial liquidity levels results with healthcare institution investment ability (Minton 1999). Schoubben (2012) results are confirmation that topic about liquidity holdings is relevant in context of its relationship with social value generated  by healthcare institution to local community (compare: Ferreira 2004, Bates 2009, Morellec 2008, Gaspar 2006). Problem of liquidity overinvestment or underinvestment change competitive risk results and influence liquidity holdings of healthcare institution for hedging purposes (Opler 1999,  Mikkelson 2003, Fresard 2010, Haushalter 2007, Morellec 2008). Healthcare institutions should understand influence liquid assets on risk and social value generated for community they serve and relationship between healthcare institution liquid assets balances and predation risk within an specific operating business (i.e. healthcare services to community increasing the community ability to realization of community social aims).

 

REFERENCES:

Bates, T., Kahle, K., & Stulz, R. (2009). Why do US firms hold so much more cash than they used to? The Journal of Finance, 64, pp. 1985–2021.

Gaspar, J., & Massa, M. (2006). Idiosyncratic volatility and product market competition. Journal of Business, 79, 3125-3152. http://dx.doi.org/10.1086/505251

Frésard, L. (2010). Financial strength and product market behavior: the real effects of corporate cash holdings. Journal of Finance, 65, 1097-1122. http://dx.doi.org/10.1111/j.1540-6261.2010.01562.x

Haushalter, D., Klasa, S., & Maxwell, W. F. (2007). The influence of product market dynamics on the firm's cash holdings and hedging behavior. Journal of Financial Economics, 84, 797-825. http://dx.doi.org/10.1016/j.jfineco.2006.05.007

Mikkelson, W. H., & Partch, M. M. (2003). Do persistent large cash reserves hinder performance? Journal of Financial and Quantitiative Analysis, 38, 275-294. http://dx.doi.org/10.2307/4126751

Minton, B., Schrand, C., 1999. The impact of cash flow volatility on discretionary investment and the cost of debt and equity financing. Journal of Financial Economics 54, 423–460.

Morellec, E., & Nikolov, B. (2008). Cash holdings and competition. Working paper, Ecole Polytechnique

Fédéral de Lausanne.

Opler, T., Pinkowitz, L., Stulz, R., & Williamson, R. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52, pp. 3–46.

Frederiek Schoubben, Cynthia Van Hulle, Market Share and Cash Policy: Evidence from Western European Companies, International Journal of Economics and Finance; Vol. 4, No. 11; 2012, ISSN 1916-971X E-ISSN 1916-9728,  Published by Canadian Center of Science and Education

Ferreira, M., & Vilela, A. (2004). Why do firms hold cash? Evidence from EMU countries. European Financial Management, 10, pp. 295–319.