Baum, Christopher F.; Caglayan, Mustafa; Stephan, Andreas; … - 2006
This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We … in response to changes in either macroeconomic or idiosyncratic uncertainty. We test this hypothesis using a panel of non … increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases. …