Acharya, Viral V.; Davydenko, Sergei A.; Strebulaev, Ilya A. - 2011
reserves are positively related to credit risk, resulting in a positive correlation between cash and spreads. In contrast …, spreads are negatively related to the "exogenous'' component of cash holdings that is independent of credit risk factors …, suggesting that precautionary savings are central to understanding the effects of cash on credit risk"--National Bureau of …
