Baum, Christopher F.; Caglayan, Mustafa; Ozkan, Neslihan; … - Department of Economics, Leicester University - 2004
This paper investigates the effects of macroeconomic volatility on non–financial firms’ cash holding behavior. Using an augmented cash buffer–stock model, we demonstrate that an increase in macroeconomic volatility will cause the cross–sectional distribution of firms’ cash–to–asset...