Similar Search Results

Almeida, Heitor - 2011

We study the interplay between corporate liquidity and asset reallocation opportunities. Our model shows that financially distressed firms are acquired by liquid firms in their industries even when there are no operational synergies associated with the merger. We call these transactions...

Persistent link: https://www.econbiz.de/10013130982

Cash Holdings and Credit Risk

Acharya, Viral V. - 2011

Intuition suggests that firms with higher cash holdings are safer and should have lower credit spreads. Yet empirically, the correlation between cash and spreads is robustly positive and higher for lower credit ratings. This puzzling finding can be explained by the precautionary motive for...

Persistent link: https://www.econbiz.de/10013125920

A Theory of Operational Cash Holding, Endogenous Financial Constraints and Credit Rationing

Kling, Gerhard - 2013

The paper develops a theory of operational cash holding considering short-term liquidity shocks due to uncertain net … constraints endogenous. Debt holders have an incentive to impose constraints to force firms to hold cash. The theory shows that … credit rationing can occur in the absence of market frictions. The paper illustrates the theory using US data from 1989 to …

Persistent link: https://www.econbiz.de/10013093785

When Does Cash Matter? Evidence for Private Firms

Ehling, Paul - 2014

Using a database of more than 180,000 private companies from 2000 to 2009, we find that the benefits of holding more cash vary substantially with a firm's size and the conditions it faces. Cash holdings matter most for small firms: When there are negative shocks to industry or macroeconomic...

Persistent link: https://www.econbiz.de/10013065040

A Note on Stakeholder Theory and Risk : Implications for Corporate Cash Holdings and Dividend Policy

Speckbacher, Gerhard - 2014

incentives for firm-specific investments in the face of high total firm risk. Hence stakeholder theory contributes to answering …

Persistent link: https://www.econbiz.de/10013069748

Corporate Liquidity Management : A Conceptual Framework and Survey

Almeida, Heitor - 2013

Ensuring that a firm has sufficient liquidity to finance valuable projects that occur in the future is at the heart of the practice of financial management. Yet, while discussion of these issues goes back at least to Keynes (1936), a substantial literature on the ways in which firms manage...

Persistent link: https://www.econbiz.de/10013074911

Asymmetric Modelling of the Adjustment Speed of Cash Holdings

Chang, Yanhao - 2017

This study examines the adjustment speed of cash holdings. Our sample comprises all nonfinancial firms listed on the NYSE, over a period from 1962 to 2014. We employ a multi-faceted empirical strategy including: (1) a dummy variable approach; (2) a cubic model; (3) a threshold regression model....

Persistent link: https://www.econbiz.de/10012963269

Financial Hedging and Corporate Cash Policy

Sun, Wenyi - 2020

We study the implications of financial hedging for corporate cash policy. Using a web crawler program to collect data on the use of financial derivatives, we find that firms with financial hedging programs have smaller cash reserves but a higher value of cash than firms without hedging contracts...

Persistent link: https://www.econbiz.de/10012837400

Investment Committee, Corporate Cash Holdings and Corporate Life Cycle

Alhadi, Ahmed - 2018

strategy and corporate decision making methods; that corporate complexity would cause each stage to exhibit certain significant …

Persistent link: https://www.econbiz.de/10012910233

The Cash Paradox

Jiang, Janet - 2019

In many industrialized countries, cash usage at points of sale has been decreasing owing to competition from alternative means of payment such as credit cards. At the same time, cash demand, measured as currency in circulation over GDP, fell only in earlier years but has remained surprisingly...

Persistent link: https://www.econbiz.de/10012889102