The ability to organize is our most valuable social technology and the successful organizational design of an enterprise can increase its efficiency, effectiveness, and ability to adapt. Modern organizations operate in increasingly complex, dynamic, and global environments, which puts a premium...

We study how nonlisted firms trade off financial, real, and distributive uses of cash. We show that firms' marginal value of cash (MVC) affects the mix of external and internal finance used to absorb fluctuations in cash flows; in particular, high-MVC firms employ substantially more external...