This study shows that spin-offs acquire liquidity from their parent firms through the trade credit channel. We compare the trade credit of spin-offs with that of independent start-ups. Our findings reveal that spin-offs increase accounts payable when their parent firms are major suppliers....

This article reveals that listing status affects corporate cash holdings during a financial crisis. We compare the cash-holding behavior between public and private firms during Japan's banking crisis, which is considered an exogenous shock for a firm's financial decision. Because private firms...

High labor compensation increases a firm's risk because of its large size and inflexibility. Utilizing the confidential Establishment Survey data in Japan, we find that labor is positively associated with cash holdings, {ceteris paribus only in the small-size firms subsample, the firms with less...