Décamps, Jean-Paul; Gryglewicz, S.; Morellec, E.; … - Toulouse School of Economics (TSE) - 2015
financing frictions and are subject to permanent and temporary cash ow shocks. In this model, target cash holdings depend on the … sensitivity of cash display a more realistic behavior than in prior models with financing frictions. In addition, risk management … investment and the firms initial asset mix both reect financing frictions and the joint effects of permanent and temporary shocks. …