In this study, we examine the performance of portfolios based on excess cash holdings using a sample of UK listed firms. We argue that firms with excess cash holdings outperform firms that hold less cash. Strategically, excess cash holdings provide advantages in the product market and have been...

Recent empirical evidence suggests that US industrial firms invest heavily in noncash, risky financial assets. Using hand-collected data on financial portfolios of German firms, we show that risky asset holdings are not an anomaly unique to the US. We find that industrial firms in Germany invest...

This paper uses stochastic simulations on calibrated models to assess the steady state impact of different pension arrangements in an environment where financial markets are less than perfect. Surprisingly little is known about the optimal split between funded and unfunded systems when there are...