The importance of short-term financial decisions to company's value is considered by testing the following hypotheses: an extra euro invested in cash or in net working capital is valued less than one euro. Running panel data regressions, evidences prove that shareholders undervalue cash holdings...

Prior studies show that agency conflicts are important in explaining corporate financial policies and that the board of directors is central to corporate governance. In this study, we examine the role of this governing body in the accumulation of cash reserves. Using a sample of 597 French...