This paper is an exploration of the relationships among the firm's financial structure, its choice of liquid asset holdings, and growth. We present a theoretical model of the firm where external finance is costly and where retaining earnings as liquid assets serves a precautionary motive. One of...

We provide evidence on operating performance changes at a sample of U.S. banks acquired by non-U.S. banking organizations over the 1980-2001 period. Our sample allows us to compare directly the pre-acquisition performance of the targets with their post acquisition performance, a comparison that...