This study adopts a new perspective, misvaluation, to explain corporate propensity to hold cash. We find a strong cross-sectional relationship between misvaluation and the propensity to hold cash, which can be attributed to firms’ equity-raising activities and the exercise of employee stock...

We examine the effects of CEO neuroticism on corporate policies for cash holdings. We hand-collect the tweets by CEOs at S&P 1500 companies to measure their neuroticism. We find that firms with relatively neurotic CEOs hold more cash than other CEOs. Using two crises as shocks to corporate...