Faculty Conference Presentation: Cash holdings, culture and foreign factors in Japan – Dr. Clinton Watkins

Dr. Clinton Watkins, Director of AIU’s Global Business Program, gave a presentation at the World Financial & Banking Symposium, hosted by Vilnius University, one of Akita International University’s partner universities in Lithuania.

Conference & Presentation Outline

The Honorable Gintare Skasite, Minister of Finance of the Republic of Lithuania, gave the keynote speech.
World Financial & Banking Symposium
Vilnius, Lithuania
Held by the Faculty of Economics and Business Administration, Vilnius University.

Title: Cash holdings, culture and foreign factors in Japan
Presenter: Dr. Clinton Watkins. Ms. Kokona Iwai, a Global Business Program student, is supporting this research by collecting an extensive amount of data on Japanese firms’ overseas subsidiaries and cultural heterogeneity.

Corporate cash holdings have increased substantially over the last two decades. This has happened both in Japan and around the world. Investors and analysts often criticise Japanese corporations for excessive cash holdings. However, there are substantial differences in cash holdings across firms and over time. Why do different firms hold different amounts of cash? Why do cash holdings change over time? 

This research examines the impact of international factors on the cash holdings of Japanese multinational firms, including exposure to overseas sales, shareholding by foreign investors and the degree of cultural heterogeneity (the different national cultures the firm is exposed to in the countries in which it operates).