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The purpose of this paper is to examine whether prior bank lending relationships affect firms’ liquidity management.

The authors mainly work on evaluating first, whether prior lending relationships affect corporate cash holdings? and second, whether the cash flow sensitivity of cash varies systemically with lending relationships. Three different ways are used to define lending relationships, including the lending relationship dummy, a firm’s maximum relationship intensity in terms of number of deals across all lenders and a firm’s maximum relationship intensity in terms of dollar amounts across all lenders. In addition, the paper applies two-stage least squares (2SLS) to address the concern of endogeneity between firms’ liquidity management and banking relationships.

The authors find that firms with lending relationships maintain a lower level of cash holdings and save less cash out of cash flow. Furthermore, the effect of lending relationships is more profound for firms with high cash flow. The results suggest that prior lending relations alleviate information asymmetry, lower the cost of capital and therefore affect firms’ propensity to retain cash and maintain a high level of cash holdings.

This paper contributes to both the liquidity management literature and the literature on the value of maintaining lending relationships with banks. Researchers should take into consideration the lending relationships built over the course of the lending when assessing firms’ cash policies.

Bank lending relationship mitigates the information asymmetry problem, one type of market friction, and facilitates firms’ future external financing, thereby affecting firms’ cash policies and giving more flexibility in liquidity management. The value of lending relationships distinguishes bank loans from public bonds. Therefore, firms, especially those facing more information asymmetry issue, should take into account the benefits from lending relationships in their future debt financing.

Extant literature examines how firm characteristics affect firms’ cash holdings. This paper introduces a new factor that could explain corporate cash policy.

A brand community consists of relationships between a brand and consumers; community members’ identification with the brand community is a central characteristic of the community. This study aims to provide a comprehensive conceptual framework to investigate how and why such identification-based relationships yield firm- and member-level benefits to participants in the brand community.

This cross-sectional study analyzes data collected through a questionnaire survey of members from the brand community of VW-Golf Club members in Taiwan. The researchers attended the annual meeting of club members and handed out questionnaires directly to the members. The degree centrality of each member was calculated using UCINET 6 for Windows, a social network analysis software application. This study adopts the partial least squares program to evaluate the measurement properties and structural relationships specified in the research model.

The findings suggest that when customers’ identification with a brand community becomes salient, they strengthen their emotional attachment to the brand and improve their centrality in the network. Consequently, emotional attachment can serve as a guiding principle in decision-making and thus strengthen brand equity and assessment of brand extensions. Central members will also gain greater benefits, including collaborative opportunities and influence, through their advantageous position in the network.

This study makes four main contributions to the brand community literature. First, this is the first empirical study to simultaneously examine the relationships among community identification (customer to community), emotional attachment to the brand (customer to brand) and network centrality (customer to customer). Second, the empirical framework depicts dual value-creation routes that explain how identification-based relationships can yield firm- and member-level benefits. With respect to firm-level benefits, this is the first empirical study to examine the brand equity and assessment of brand extension in the brand community research. Third, this study applies the rarely adopted UCINET 6 software to scrutinize the network data from the brand community. Finally, this paper examines three actions that organizations can leverage to enhance consumer identification with a brand community.