The DOI matches its Crossref record; 51 of the 51 references it cites were found in a registry or an index.
Corporate Financial Policy and the Value of Cash
Open accessAbstract
We examine the cross‐sectional variation in the marginal value of corporate cash holdings that arises from differences in corporate financial policy. We begin by providing semi‐quantitative predictions for the value of an extra dollar of cash depending upon the likely use of that dollar, and derive a set of intuitive hypotheses to test empirically. By examining the variation in excess stock returns over the fiscal year, we find that the marginal value of cash declines with larger cash holdings, higher leverage, better access to capital markets, and as firms choose greater cash distribution via dividends rather than repurchases.
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Cites
Theory of the firm: Managerial behavior, agency costs and ownership structure
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The pricing of options and corporate liabilities
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A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity
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Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
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Theory of Rational Option Pricing
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Cited by
Financial Constraints, Investment, and the Value of Cash Holdings
Denis, D. J., & Sibilkov, V. (2010) · Review of Financial Studies · doi:10.1093/rfs/hhp031 · Cited by 1,377
Agency Problems of Corporate Philanthropy
Masulis, R. W., & Reza, S. W. (2015) · Review of Financial Studies · doi:10.1093/rfs/hhu082 · Cited by 1,020
Is cash negative debt? A hedging perspective on corporate financial policies
Acharya, V. V., Almeida, H., & Campello, M. (2007) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2007.04.001 · Cited by 893
International Evidence on Cash Holdings and Expected Managerial Agency Problems
Kalcheva, I., & Lins, K. V. (2007) · Review of Financial Studies · doi:10.1093/rfs/hhm023 · Cited by 820
Do financing constraints matter for R&D?
Brown, J. R., Martinsson, G., & Petersen, B. C. (2012) · European Economic Review · doi:10.1016/j.euroecorev.2012.07.007 · Cited by 811
Metadata
- Authors
- FAULKENDER, M., & WANG, R.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2006-08
- Volume
- 61
- Issue
- 4
- Pages
- 1957-1990
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W3121986562
- Cited by
- 1,634
- References
- 51
- FWCI
- 110.60
- Type
- journal article
- Language
- en
- Open access
- green
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
