Cash holdings and business conditions

Detalhes bibliográficos
Autor(a) principal: Custódio, Cláudia
Data de Publicação: 2005
Outros Autores: Ferreira, Miguel A., Raposo, Clara
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/24369
Resumo: We investigate the relation between business conditions and corporate liquidity decisions by US firms. We find strong evidence that financially constrained firms hold more cash during recessions and that business conditions are significant to constrained firms’ cash decisions. In contrast, we find weak evidence that financially unconstrained firms adjust cash holdings according to the business cycle. This asymmetric behavior is more pronounced for changes in the short-term interest rate. Moreover, we find that firms increase the level of liquidity during periods of tighter credit conditions. Our findings support both the precautionary motive for holding cash and the pecking order theory
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spelling Cash holdings and business conditionsCash HoldingsFinancial ConstraintsBusiness ConditionsWe investigate the relation between business conditions and corporate liquidity decisions by US firms. We find strong evidence that financially constrained firms hold more cash during recessions and that business conditions are significant to constrained firms’ cash decisions. In contrast, we find weak evidence that financially unconstrained firms adjust cash holdings according to the business cycle. This asymmetric behavior is more pronounced for changes in the short-term interest rate. Moreover, we find that firms increase the level of liquidity during periods of tighter credit conditions. Our findings support both the precautionary motive for holding cash and the pecking order theoryISCTE Business SchoolRepositório da Universidade de LisboaCustódio, CláudiaFerreira, Miguel A.Raposo, Clara2022-05-25T10:03:48Z20052005-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/24369engCustodio, Cláudia; Miguel A. Ferreira and Clara Raposo. (2005). "Cash holdings and business conditions." ISCTE Business School.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:54:01Zoai:www.repository.utl.pt:10400.5/24369Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:08:26.141084Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Cash holdings and business conditions
title Cash holdings and business conditions
spellingShingle Cash holdings and business conditions
Custódio, Cláudia
Cash Holdings
Financial Constraints
Business Conditions
title_short Cash holdings and business conditions
title_full Cash holdings and business conditions
title_fullStr Cash holdings and business conditions
title_full_unstemmed Cash holdings and business conditions
title_sort Cash holdings and business conditions
author Custódio, Cláudia
author_facet Custódio, Cláudia
Ferreira, Miguel A.
Raposo, Clara
author_role author
author2 Ferreira, Miguel A.
Raposo, Clara
author2_role author
author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Custódio, Cláudia
Ferreira, Miguel A.
Raposo, Clara
dc.subject.por.fl_str_mv Cash Holdings
Financial Constraints
Business Conditions
topic Cash Holdings
Financial Constraints
Business Conditions
description We investigate the relation between business conditions and corporate liquidity decisions by US firms. We find strong evidence that financially constrained firms hold more cash during recessions and that business conditions are significant to constrained firms’ cash decisions. In contrast, we find weak evidence that financially unconstrained firms adjust cash holdings according to the business cycle. This asymmetric behavior is more pronounced for changes in the short-term interest rate. Moreover, we find that firms increase the level of liquidity during periods of tighter credit conditions. Our findings support both the precautionary motive for holding cash and the pecking order theory
publishDate 2005
dc.date.none.fl_str_mv 2005
2005-01-01T00:00:00Z
2022-05-25T10:03:48Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/24369
url http://hdl.handle.net/10400.5/24369
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Custodio, Cláudia; Miguel A. Ferreira and Clara Raposo. (2005). "Cash holdings and business conditions." ISCTE Business School.
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISCTE Business School
publisher.none.fl_str_mv ISCTE Business School
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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