| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP9535
|
| DP9535 Stock Liquidity and Corporate Cash Holdings |
| Kjell Nyborg; Zexi Wang
|
| 发表日期 | 2013-07-07
|
| 出版年 | 2013
|
| 语种 | 英语
|
| 摘要 | The paper contributes to the literature on corporate cash holdings by showing that there is a financial markets channel that affects corporations? cash holdings. Leaning on the literature on stock price feedback to firm fundamentals, we advance the hypothesis that firms with more liquid stocks hold more cash, ceteris paribus, as ammunition to defend against negative cascades or stimulate positive ones. This contrasts with an alternative view that firms with more liquid stocks are less financially constrained and therefore hold relatively less cash. The evidence favors the cascade/cash as ammunition hypothesis, also with respect to its predictions regarding growth opportunities and cash holdings. As a robustness check, we use the introduction of tick size decimalization in 2001 as a natural experiment where liquidity was exogenously shocked. We also find evidence of two-way causality; a higher level of stock liquidity leads to more cash holdings, and vice versa. |
| 主题 | Financial Economics
|
| 关键词 | Cascades
Cash holdings
Feedback
Information
Stock liquidity
|
| URL | https://cepr.org/publications/dp9535
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/538371
|
推荐引用方式
GB/T 7714 |
Kjell Nyborg,Zexi Wang. DP9535 Stock Liquidity and Corporate Cash Holdings. 2013.
|
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