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Financial Constraints, Real Options and Corporate Cash Holdings

Ramezani, Cyrus A. - 2013

options are more valuable when their underlying volatility is high and when the firm is not financially constrained. The … having high volatility and high financial flexibility. We then study the determinants of demand for liquidity for each group … of firms. We find that firms with valuable real options (high volatility and high financial flexibility) have …

Persistent link: https://www.econbiz.de/10013087700

Firm Cash Holdings and CEO Inside Debt

Liu, Yixin - 2013

We examine the effect of CEO pensions and deferred compensation (inside debt) on firm cash holdings and the value of cash. We document a positive relation between CEO inside debt and firm cash holdings. This positive effect is magnified by firm leverage and mitigated by the presence of financial...

Persistent link: https://www.econbiz.de/10013090056

Determinants of Corporate Cash Policy : Insights from Private Firms

Gao, Huasheng - 2013

We provide one of the first large sample comparisons of cash policies in public and private U.S. firms. We first show that despite higher financing frictions, private firms hold, on average, about half as much cash as public firms do. By examining the drivers of cash policies for each group, we...

Persistent link: https://www.econbiz.de/10013091346

Investor Protection and Cash Holdings : Evidence from U.S. Cross-Listing

Huang, Ying - 2014

This paper examines whether the level of firms' cash holdings differ depending on the strength of investor protection, whether excess cash holdings are valued more with better investor protection, and whether cross-listed firms that improve investor protection through ‘bonding' hold relatively...

Persistent link: https://www.econbiz.de/10013066415

Corporate Cash Holdings and their Implications on Firm Value in Family and Founder Firms

Lau, James - 2014

This research investigates whether the presence of controlling founders and families has significant impact on the level of cash holdings, and their implications on firm value. The agency cost of cash holdings in founder firms is arguably less severe than family firms, due to founders' economic...

Persistent link: https://www.econbiz.de/10013066680

The Effects of Government Quality on Corporate Cash Holdings

Chen, Deqiu - 2014

the investment sensitivity to cash flows and cash sensitivity to cash flows, decreases cash holdings more significantly in …

Persistent link: https://www.econbiz.de/10013067028

Cash Holdings of German Open-End Equity Funds : Does Ownership Matter?

Dötz, Niko - 2013

In the light of the recent financial crisis, the discussion on the nature of runs and on the stabilizing role of liquidity holdings has intensified. This paper explores the cash management conducted by German open-end equity funds for the period between 2005 and 2010. Since ownership structures...

Persistent link: https://www.econbiz.de/10013072782

Does the Board of Directors Affect Cash Holdings? A Study of French Listed Firms

Boubaker, Sabri - 2013

Prior studies show that agency conflicts are important in explaining corporate financial policies and that the board of directors is central to corporate governance. In this study, we examine the role of this governing body in the accumulation of cash reserves. Using a sample of 597 French...

Persistent link: https://www.econbiz.de/10013073687

Cash Holdings and Business Group Membership

Locorotondo, Rosy - 2015

This study examines the cash policies of business group members (i.e., affiliates). Using a panel dataset of private Belgian affiliates and comparable non-affiliated firms, the empirical results show that business group affiliates hold significantly smaller amounts of cash as compared to...

Persistent link: https://www.econbiz.de/10013015501

Diversification and Cash Dynamics

Bakke, Tor-Erik - 2016

corporate investment, saving, and diversification decisions. We find that investment dynamics are more important in explaining …

Persistent link: https://www.econbiz.de/10013000963