Research and Development Methodology Case 1

1
Research and Development Methodology - Case 1

• Anna Rofhök-Björni
• Tomasz Odrobinski

2
Our Articles

• Hold Onto Your Cash by Czyzewski and Hicks (1992)
  
• Cash and Foreign Exchange Management Theory and
  corporate practice in three countries (1989)
• International Corporate Governance and Corporate
  Cash Holdings by Dittmar, Mahrt-Smith and Servaes
  (2003).

3
Hold Onto Your Cash by Czyzewski and Hicks (1992)
-1

• Summary
• Examining if managers are using assets in
  productive way
• Measures the effect of cash holdings on ROA
• Methodology
• Data from Compustat Tapes
• Grouping according to ROA and industry
• Percentage of cash with assets

4
Hold Onto Your Cash by Czyzewski and Hicks (1992)
-2

• Results
• Firms with highest ROA have the highest amount of
  cash
• Quality of the article
• Validity
• Reliability
• Generalisability

5
Cash and Foreign Exchange Management Theory and
corporate practice in three countries (1989) -1

• Summary
• How cash and foreign exchange management vary
  between countries
• 7 areas of CFEM
• Methodology
• The Netherlands, Belgium, UK
• Questionnaire 750 companies
• analysis of replies (30,5)

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Cash and Foreign Exchange Management Theory and
corporate practice in three countries (1989) 2

• Results
• significant variation
• Size of companies matter
• Quality of the article
• Validity
• Reliability
• Generalisability

7
International Corporate Governance and Corporate
Cash Holdings by Dittmar, Mahrt-Smith and Servaes
(2003) -1

• Summary
• Relevance of corporate governance in cash
  holdings
• Main determinants of corporate cash holdings
• Methodology
• International setting
• Global Vantage Database
• Robustness check

8
International Corporate Governance and Corporate
Cash Holdings by Dittmar, Mahrt-Smith and Servaes
(2003) -2

• Results
• Agency costs main determinant
• Quality of the article
• Validity
• Reliability
• Generalisability

9
Conclusions

• Size of articles vary
• Amount of references
• Documentation of methodology
• Support of findings
• Usefulness