Excess cash holdings and shareholder value

Article English OPEN
Lee, Edward; Powell, Ronan;
(2011)
  • Publisher: Wiley
  • Related identifiers: doi: 10.1111/j.1467-629X.2010.00359.x
  • Subject: Marginal value of cash | Trade-off | Transactions cost | Persistence | Stock performance
    mesheuropmc: human activities | behavioral disciplines and activities | health care economics and organizations

We examine the determinants of corporate cash holdings in Australia and the impact on shareholder wealth of holding excess cash. Our results show that a trade-off model best explains the level of a firm’s cash holdings in Australia. We find that 'transitory' excess cash... View more
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