S&P Research Study Shows Massive Cash Buildup Among Companies In The BRIC Nations

Monday, February 14, 2011 08:07
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S&P Research Study Shows Massive Cash Buildup Among Companies In The BRIC Nations

Tags: emerging markets | world economy

Cash holdings of companies headquartered in Brazil, Russia, India and China have soared at nearly four times the rate of developed-country firms in the last five years.

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The BRIC nations have emerged as economic powers on the worldwide stage, and this analysis by S&P Valuation and Risk Strategies research group shows that China is experiencing the fastest growth among the four.


The most immediate implication for investors is the likelihood of an increase in mergers and acquisitions worldwide, along with increased dividends, stock buybacks and debt reduction. Also, many of the cash-rich firms are in the energy sector.
 

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