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This paper documents new and empirically important interactions between cash-balance and leverage dynamics. Cash ratios typically vary widely over extended horizons, with dynamics remarkably similar to (and complementary with) those of capital structure. Leverage and cash dynamics interact...
Persistent link: https://www.econbiz.de/10012585454
The average cash to assets ratio for U.S. industrial firms increases by 129% from 1980 to 2004. Because of this increase in the average cash ratio, American firms at the end of the sample period can pay back their debt obligations with their cash holdings, so that the average firm has no...
Persistent link: https://www.econbiz.de/10012466129
financial policies such as cash and debt management. It suggests that cash should not be viewed as negative debt …
Persistent link: https://www.econbiz.de/10012467291
We present a model that characterizes the relationship between optimal dynamic cash management and the choice of the … produces a rich set of over-identifying restrictions for consumers' cash-management and payment choices which can be tested …
Persistent link: https://www.econbiz.de/10012457556
We use an innovative survey tool to collect management practice data from 732 medium sized manufacturing firms in the …-level productivity, profitability, Tobin's Q, sales growth and survival rates. Management practices also display significant cross … tail of extremely badly managed firms. We find that poor management practices are more prevalent when (a) product market …
Persistent link: https://www.econbiz.de/10012466452
Management has a large effect on the productivity of large firms. But does management matter in micro and small firms … in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in …
Persistent link: https://www.econbiz.de/10012457163
understand the challenge of translating risk management theory into managerial action. Cephalon Inc., a biotech firm, bought a … both managers and theorists. Managers consider deadweight costs of financing and of risk management, whereas theory tends … arrive at decisions and this measurement problem is severe. Cephalon's risk management decisions seem motivated as much by …
Persistent link: https://www.econbiz.de/10012471002
Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow sensitivities are not good indicators of financing constraints. Fazzari, Hubbard and Petersen [1999] criticize those findings. In this note, we explain how the Fazzari et al. [1999]...
Persistent link: https://www.econbiz.de/10012471108
Diversified firms have different values than comparable portfolios of single-segment firms. These value differences must be due to differences in either future cash flows or future returns. Expected security returns on diversified firms vary systematically with relative value. Discount firms...
Persistent link: https://www.econbiz.de/10012471389
This paper examines common arrangements for separating control from cash flow rights: stock pyramids, cross-ownership structures, and dual class equity structures. We describe the ways in which such arrangements enable a controlling shareholder or group to maintain a complete lock on the control...
Persistent link: https://www.econbiz.de/10012471856