The few studies that examine the cash-flow sensitivity of cash (CFSC) report mixed and conflicting results. However, we note a marked increase in the CFSC of US firms from 1971 to 2015 that is pervasive and robust to standard controls used in the literature. On average, this sensitivity has...

Firm liquidity can be particularly important for firms that are not able to access capital from traditional financial institutions. The current study estimates a dynamic model of firm growth in Barbados, using data on companies listed on the Barbados Stock Exchange between 1997 and 2007 to...

This study investigates the effect of family firm on corporate performance and financial policy (capital structure, cash holding, and cash dividends). Using a sample of Brazilian firms, the study uses a treatment effect model to address self-selection and endogeneity problems. The results show...

We investigate the secular increase in the corporate cash holding over the period 1980-2006. We show that along with firm characteristic–related variables, monetary policy and banking structure have a significant bearing on corporate cash holdings, as they determine the opportunity cost of...

Almeida, Campello, and Weisbach (2004) show that cash flow sensitivities are higher for firms that are financially constrained. This paper updates and extends the work of Almeida, Campello, and Weisbach to account for possible misspecification of financial constraints as well as changes in firm...

We show that when only a few investors contribute a substantial portion of a fund's equity, the probability of large liquidity-driven fund outflows increases because investors' idiosyncratic liquidity shocks are not diversified away. Using confidential regulatory filings, we find the five...

This study investigates how controlling shareholders fraudulently extracted firm value via cash tunnelling from Chinese companies from 1998 to 2011. The evidence suggests that expropriating owners choose a balance sheet account that is not directly related to the firm's operating business in...