Non-linear Target Adjustment in Corporate Liquidity Management: An Endogenous Thresholds Approach

We provide new empirical evidence on non-linear liquidity management in Dutch firms. Our results reveal that liquidity adjustment from below the target is significantly faster than from above. We find no evidence for bands of inaction around the target.

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Year of publication:	2006
Authors:	Bruinshoofd, A. ; Kool, Clemens J. M.
Publisher:	Utrecht : Utrecht University, Utrecht School of Economics, Tjalling C. Koopmans Research Institute
Subject:	Corporate Liquidity Management \| Non-linear Adjustment \| Endogenous Thresholds \| Panel Approach

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Series:	Discussion Papers Series ; 06-15
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	hdl:10419/322706 [Handle] RePEc:use:tkiwps:0615 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10015435033