Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

ETF ownership and corporate cash holdings

Tosun, Onur Kemal ORCID: and El Kalak, Izidin ORCID: 2022. ETF ownership and corporate cash holdings. European Financial Management 28 (5) , pp. 1308-1346. 10.1111/eufm.12352

[thumbnail of Euro Fin Management - 2022 - El Kalak - ETF ownership and corporate cash holdings.pdf]
PDF - Published Version
Available under License Creative Commons Attribution.

Download (2MB) | Preview


Do exchange traded funds (ETFs) influence corporate cash holding decisions? Consistent with reduced managerial learning from the stock market and increased uncertainty due to higher ETF ownership, we show that firms included in ETF baskets have higher cash holdings as a precautionary response. We address endogeneity concerns through different natural experiments, namely, the reconstitution of the Russell 1000/2000 index and BlackRock’s acquisition of iShares. We identify changes in revenue, external financing, share repurchases, and net working capital as potential channels through which cash holdings increase due to higher ETF ownership, with cash holdings increases having positive impact on firm value.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HG Finance
Publisher: Wiley
ISSN: 1354-7798
Date of First Compliant Deposit: 23 January 2022
Date of Acceptance: 18 January 2022
Last Modified: 02 May 2023 11:39

Actions (repository staff only)

Edit Item Edit Item


Downloads per month over past year

View more statistics