Couzoff, Panagiotis; Banerjee, Shantanu; Pawlina, Grzegorz - 2023
's liquidity levels and the collective propensity of shareholders and managers to reduce cash flow risk. We also discuss the firm …We develop a dynamic model of a firm in which cash management is partially delegated to a self-interested manager …. Shareholders trade off the cost of dismissing the manager with the cost of managerial discretion over the use of liquid funds. An …