Using data from 41 different countries including the United States, we provide novel empiricalevidence that firms increase their cash holdings as a response to climate risk. This effect is drivenby financially constrained firms and becomes significantly stronger after the release of the...

Existing studies of capital structure show a positive association between tangible assets and leverage, but these studies have ignored the potential systematic variation in magnitude due to institutional heterogeneity across countries. Using a sample from 32 countries, we find that the...

Extant research finds that firms are increasingly substituting dividends with share repurchases. This substitution effect is largely attributable to the flexibility offered by share repurchases but not by dividends. Without fear of an adverse market reaction, firms can choose not to repurchase...