The DOI matches its Crossref record; 15 of the 15 references it cites were found in a registry or an index.
Why Do U.S. Firms Hold So Much More Cash Than They Used To?
Open accessAbstract
The average cash to assets ratio for U.S. industrial firms increases by 129% from 1980 to 2004.Because of this increase in the average cash ratio, American firms at the end of the sample period can pay back their debt obligations with their cash holdings, so that the average firm has no leverage when leverage is measured by net debt.This change in cash ratios and net debt is the result of a secular trend rather than the outcome of the recent buildup in cash holdings of some large firms.It is concentrated among firms that do not pay dividends.The average cash ratio increases over the sample period because the cash flow of American firms has become riskier, these firms hold fewer inventories and accounts receivable, and the typical firm spends more on R&D.The precautionary motive for cash holdings appears to explain the increase in the average cash ratio.
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Cites
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
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Almeida, H., Campello, M., & Weisbach, M. S. (2004) · The Journal of Finance · doi:10.1111/j.1540-6261.2004.00679.x · Cited by 3,496
Disappearing dividends: changing firm characteristics or lower propensity to pay?
Fama, E. F., & French, K. R. (2001) · Journal of Financial Economics · doi:10.1016/s0304-405x(01)00038-1 · Cited by 3,035
The Transactions Demand for Cash: An Inventory Theoretic Approach
Baumol, W. J. (1952) · The Quarterly Journal of Economics · doi:10.2307/1882104 · Cited by 2,349
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Dittmar, A., Mahrt-Smith, J., & Servaes, H. (2003) · The Journal of Financial and Quantitative Analysis · doi:10.2307/4126766 · Cited by 1,633
A Model of the Demand for Money by Firms
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Idiosyncratic Return Volatility, Cash Flows, and Product Market Competition
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Fama, E. F., & French, K. R. (2004) · Journal of Financial Economics · doi:10.1016/j.jfineco.2003.04.001 · Cited by 643
The Idiosyncratic Volatility Puzzle: Time Trend or Speculative Episodes?
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Cited by
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
Corporate cash holdings and CEO compensation incentives
Liu, Y., & Mauer, D. C. (2011) · Journal of Financial Economics · doi:10.1016/j.jfineco.2011.05.008 · Cited by 325
Metadata
- Authors
- Bates, T., Kahle, K., & Stulz, R.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2006-09
- OpenAlex
- W2889965213
- Cited by
- 367
- References
- 15
- Type
- report
- Language
- en
- Open access
- green
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