or employment. Using U.S. firm level data, we document systematic patterns of cash and debt financing around lumpy … productivity are leading indicators of the lumpy adjustment. Cash and debt capacity are actively manipulated, and contribute … debt. During and after contractions, firms rebuild cash and reduce debt growth significantly in a concerted effort to …

Corporate cash holdings impact firms' product pricing strategies. Exploiting the Aviation Investment and Reform Act of … that firms with more cash than their rivals respond to intensified competition by pricing more aggressively, especially …. Moreover, cash-rich firms experience greater market share gains and long-term profitability growth. The results highlight the …

by curbing risk-taking incentives, the higher the leverage the bank is permitted to take on. Consequently, the risk …

explanation for a wide range of corporate policies such as leverage, share issuance and repurchases, M&A payment method, cash …Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …

We examine the relation between corporate cash holdings and tax net operating loss carryforwards (NOLs). Prior … literature demonstrates that firms should distribute cash to shareholders, rather than retain the cash and generate passive … the shareholder's – as in the case of an NOL firm – theory also shows that the firm should retain cash and invest on the …

Prior to 2018, U.S. repatriation taxes motivated companies to retain cash offshore. Using confidential jurisdiction …-specific data from the Bureau of Economic Analysis, we find that firms with high tax-induced foreign cash have approximately 3 ….3 percent higher domestic liabilities relative to other multinationals, equivalent to $152.2 million more domestic debt per firm …

investments (financing asset sales) across the business cycle. Equity financed investment transfers wealth from equity to debt …, hence, transfer wealth back from debt to equity. Exploring the dynamics of the heretofore overlooked “asset sale versus …

Systemically important banks are subject to at least two departures from the neutrality of debt versus equity financing … underlying mechanisms differ. The tax shield incentivises debt financing as it reduces tax payments to the government. The … implicit funding subsidy incentivises debt financing as it lowers private bankruptcy costs. This funding subsidy is passed on …