We solve a deterministic impulse control problem with state dependent continuous control constraints. Impulses shift the state variable, altering subsequent continuous control constraints, making established methods difficult to apply. These functionals arise in the context of firm valuation,...

Since 1988, cash holding of UK listed companies increased from 10.6 to 16.4%. Focusing on the short-term view of cash holding and its substitutes, trade credit and short-term bank finance, the study develops a panel vector autoregression that accounts for firm-specific liquidity needs based on...

The paper develops a theory of operational cash holding considering short-term liquidity shocks due to uncertain net working capital. Debt holders provide an irrevocable credit line based on expected insolvency risk, and firms select optimal cash holding maximizing shareholder value. Debt and...