We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates between 1980 and 2014. We partition the sample according to the firms' financial constraints and their needs to hedge against future shortfalls in operating income. In contrast to...

Cash holding is important for Chinese manufacturing firms coping with the increasing costs of financing and tough economic conditions. This study examines the impact of cash holding on the firm value of Chinese manufacturing businesses. We found evidence that a non-linear relationship exists...

In the third article, I examine the effects of credit rationing on corporate cash holdings by modeling the precautionary demand for cash. In the model firms can pledge part of the future cash-flows to creditors when current cashflows are insufficient to finance investment. The discrete time...