or higher cash, but valuations and cash are positively related. As a result, purging the relation between returns and … valuations of cash results in a stronger value effect while purging the relation between returns and cash of valuations results … in a stronger cash effect. The data confirm these predictions. In particular, controlling for cash increases the power of …

Prior to 2018, U.S. repatriation taxes motivated companies to retain cash offshore. Using confidential jurisdiction …-specific data from the Bureau of Economic Analysis, we find that firms with high tax-induced foreign cash have approximately 3 …, or approximately $98.9-$141.9 billion in aggregate. We next examine motives for firms with tax-induced foreign cash to …

Corporate cash holdings impact firms' product pricing strategies. Exploiting the Aviation Investment and Reform Act of … that firms with more cash than their rivals respond to intensified competition by pricing more aggressively, especially …. Moreover, cash-rich firms experience greater market share gains and long-term profitability growth. The results highlight the …

This work studies the effects of competition on corporate cash holdings. I develop an industry equilibrium model in … which credit constrained firms use liquidity reserves as a buffer against future cash shortfalls. Competition triggers two … holding cash. Second, it induces the firms to reduce leverage and interest payments on debt. Lower debt payments require a …

Cash holdings as a proportion of total assets of North American corporations have roughly doubled between 1971 and 2006 …. Prior research attributes the large cash increase to a rise in firms' cash flow volatility. We investigate two mechanisms by … which increased volatility can lead to higher cash holdings. The first is the precautionary motive inducing firms to be …

economically meaningful, positive correlation between the CEO total annual compensation and corporate cash holdings during the …

We posit that firms with valuable real options have higher demand for cash and liquid assets and propose a simple … financial flexibility resulting from large cash holdings enable firms to optimally exercise valuable real options without … significantly higher cash holdings. Our finding offers new insights about the interaction between financing constraints, a firm …

benefit. Hence, there is a tax saving incentive to retain cash in the firm. We theoretically and empirically show that this … tax saving motive is important for corporate cash holdings. We develop a dynamic corporate finance model of liquidity … costs. The model implies that corporate cash holdings are substantial and increasing with the dividend tax rate. To identify …

explore corporate data to investigate how economic uncertainty affected investment, dividend payouts and cash holdings, based … investment opportunities, sales growth, and the firm's own stock volatility. Economic uncertainty also explains the rise in cash … holdings and the fall in payouts. Hence, our results help explain why UK firms invested so little and held so much cash at a …

The determinants of firm level cash holdings are well documented, yet relatively less is known about the influence of … CEO characteristics on corporate liquidity decisions. We examine changes in cash holdings around CEO turnover events, a … period in which discrete changes in managerial preferences and abilities are likely to have the most dramatic effect on cash …