volatility in wholesale markets. Empirically, higher volatility of electricity prices leads to an increase in cash holdings, and … this effect is robust to instrumenting for price risk using weather volatility. Cash increases more with price risk in …

rates. However, they are likely to benefit from diversification of cash flows and flexibility in capital sources. We show … that multinational firms, indeed, have a better access to foreign capital markets and a lower cost of debt than otherwise …

This paper reexamines the empirical evidence on the cash flow sensitivity of cash presented by Almeida, Campello, and … Weisbach (2004). The original paper introduces a model in which financially constrained firms choose to save cash out of … incremental cash flows but financially unconstrained do not. The authors find evidence consistent with this hypothesis on a sample …