| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP11510 |
| DP11510 Non-Precautionary Cash Hoarding and the Evolution of Growth Firms | |
| Arnoud Boot; Vladimir Vladimirov | |
| 发表日期 | 2016-09-17 |
| 出版年 | 2016 |
| 语种 | 英语 |
| 摘要 | The starting point of our paper is the question: Should a growth firm hoard cash to reduce dilution associated with external financing (by self-financing more) if this means delaying its existing investment opportunity? The analysis of such non-precautionary hoarding gives a stark contrast to the better-known precautionary motive that focuses on hoarding cash in anticipation of the arrival of potential investment opportunities. The latter particularly applies to large and mature firms. Our perspective is that of a growth firm with investment opportunities already present but without the necessary cash to undertake these opportunities; arguably one of the most important settings in corporate finance. While from a precautionary perspective, firms expecting the arrival of better opportunities hoard more, we have the opposite prediction for growth firms for which investment opportunities are already present. Such non-precautionary hoarding features a self-reinforcing effect: firms with better investment opportunities hoard less, yet grow successful and cash-rich more quickly. We show that hoarding affects the choice between public and private financing, and is sensitive to product market competition. Our contrasting insights to those from precautionary theories can help explain puzzling empirical evidence, such as why private firms hoard less than public firms, and why competition drives some firms to prefer hoarding and public financing, while others to prefer the opposite. |
| 主题 | Financial Economics |
| 关键词 | Cash hoarding Cash holdings Public versus private financing Growth firms Competition Real options |
| URL | https://cepr.org/publications/dp11510 |
| 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/540324 |
| 推荐引用方式 GB/T 7714 | Arnoud Boot,Vladimir Vladimirov. DP11510 Non-Precautionary Cash Hoarding and the Evolution of Growth Firms. 2016. |
| 条目包含的文件 | 条目无相关文件。 | |||||
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
