Similar Search Results

Measuring the Value of Corporate Cash Holdings against Predictable and Unpredictable Negative Shocks

Hori, Keiichi; Aono, Kohei - 2021

This paper explores how cash mitigates predictable and unpredictable adverse cash flow shocks to firms using the financial data of Japanese firms. We find that (i) cash has no value after the predicted shock regardless of the severity of the financial constraint, (ii) after the unpredicted...

Persistent link: https://www.econbiz.de/10013230436

Firm size does matter : new evidence on the determinants of cash holdings

Magerakis, Efstathios; Gillas, Konstantinos Gkillas; … - In: Journal of risk and financial management : JRFM 13 (2020) 8/163, pp. 1-33

We study the financial determinants of cash holdings and discuss the importance of firm size in the post-crisis period. We employ panel data regression analysis on a sample of 6629 non-financial and non-utility listed companies in the United Kingdom from 2010 to 2018. We focus on the comparative...

Persistent link: https://www.econbiz.de/10012322361

Betas and Liquidity : Differences in Systematic Price Risk Due to Asymmetric Asset Liquidity and Correlated Funding Shocks

Umlauft, Roland - 2013

This research presents evidence for the existence of differences in asset beta risk in the liquidity cross-section of … assets due to correlated trading. It is argued that due to differences in liquidity or cost, most trading activity is …

Persistent link: https://www.econbiz.de/10013090386

Financial distress and relationship lending

Stephenson, Nadine - 2010

Persistent link: https://www.econbiz.de/10009008414

Cash Holdings and Bond Returns Around Takeovers

Podolski, Edward - 2016

Using a large sample of 2,712 unique U.S. domestic takeovers over the period 1993 to 2014, we show a negative relation between the level of cash holdings and post-announcement corporate bond returns. Our findings support the agency cost of cash holdings view and show that bondholders and...

Persistent link: https://www.econbiz.de/10013006488

CEO Overconfidence and the Value of Corporate Cash Holdings

Aktas, Nihat - 2018

Cash holding is on average more valuable when firms are managed by overconfident CEOs. Economically, having an overconfident CEO on board is associated with an increase of $0.28 in the value of $1.00 cash holding. The positive effect of CEO overconfidence on the value of cash concentrates among...

Persistent link: https://www.econbiz.de/10012936741

What is the Real Relationship between Cash Holdings and Stock Returns?

Ang, Tze Chuan 'Chewie'; Lam, FY Eric C; Ma, Tai; Wang, … - 2022

The literature has provided mixed evidence on the relationship between cash holdings and average stock returns. We empirically verify that the relationship is positive and robust to the adjustment of risk, the construction of cash holdings portfolios, and the weighting scheme of portfolio...

Persistent link: https://www.econbiz.de/10013405804

Do Business Cycles Influence Corporate Cash Holdings?

Stone, Anna-Leigh - 2015

This paper examines the relationship between cash holdings and business cycles between 1976 and 2012, with a primary emphasis on how cash holdings vary during the business cycle and specifically during recessions. Using several different quarterly data sets, findings confirm that cash holdings...

Persistent link: https://www.econbiz.de/10013024409

Dynamic Corporate Liquidity

Nikolov, Boris - 2017

We examine the determinants of corporate liquidity management through the lens of an estimated dynamic model of … corporate investment and financing. When external finance is costly, firms can absorb shocks and cover liquidity needs by … holding cash and by drawing down credit lines. In contrast to cash, we model credit lines as providing liquidity contingent on …

Persistent link: https://www.econbiz.de/10012974552

News Tone, Investor Sentiment, and Liquidity Premium

Liu, Jun; Wu, Kai; Zhou, Ming - 2022

Investor sentiment affects stock market liquidity by affecting noise trading and irrational market makers. Previous … studies have focused on this effect with the time-series variation in sentiment and liquidity. This paper utilizes firm …-specific news sentiment (FSNS) to examine its effect on stock liquidity in China stock market and show that firms with an optimistic …

Persistent link: https://www.econbiz.de/10013492675