Spelling suggestions: "subject:"net det ratio"" "subject:"net dept ratio""
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Determinants of Corporate Cash HoldingsLi, Yun Lai (William) 01 January 2011 (has links)
The paper explores the driving forces behind corporate cash holdings by analyzing past literature and extending this research to the behavior of firms after the 2008 recession. I look at the cash to assets and net debt to assets ratios from October 1980 to October 2011 to obtain an understanding of the past and current state of cash holdings. A comprehensive literature review is done on agency costs and transactional motives to give the reader an overview of the costs and benefits of holding cash. This provides the foundation for the precautionary motives for companies today to keep cash as a risk management tool.
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