Bates, Thomas W.; Kahle, Kathleen M.; Stulz, Rene M. - Charles A. Dice Center for Research in Financial … - 2007
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, firms at the end of the sample period can pay back all of their debt obligations with their cash holdings, so that the average firm has no leverage...