Using geographic variation in real estate market shocks following the financial crisis to proxy for local economic vulnerability, we find that firms whose headquarters are in states with vulnerable real estate markets are associated with more cash holdings. We document consistent results using a...

Many employers link wages at the firm’s establishments outside of the home region to the level at headquarters. Multinationals that anchor-to-the headquarters also transmit wage changes arising from shocks to minimum wages and exchange rates in the home country/state to their foreign...