-level uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as industry-level uncertainty … increases the firm will increase its optimal level of liquidity. We test this hypothesis using a panel of German firms drawn … from the Bundesbank's balance sheet database and show that greater uncertainty at the industry level causes firms to …

-level uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as industry-level uncertainty … increases the firm will increase its optimal level of liquidity. We test this hypothesis using a panel of German firms drawn … from the Bundesbank's balance sheet database and show that greater uncertainty at the industry level causes firms to …

increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases. …This paper investigates the link between the optimal level of non-financial firms? liquid assets and uncertainty. We … develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio …

increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases. …This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We … develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio …

increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases. …This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We … develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio …

-financial firms' liquid assets. We argue that higher uncertainty will hamper managers' ability to accurately predict firm …