Why US firms have increased their cash holdings

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Reference no: EM132449824 , Length: word count :- 500

Question 1: Critically analyse the reasons why U.S. firms have increased their cash holdings and how does this affect future firm performance?

For your work, you are required to discuss (and cite) the following paper:

  • Bates, T. W., Kahle, K. M., & Stulz, R. M. (2009). Why do US firms hold so much more cash than they used to?. Journal of Finance, 64(5), 1985-2021.
  • Most importantly, you are expected to refer and provide a critique of other relevant literature.
  1. Except these points: agency problem , R&D cost , Growth in idiosyncratic risk is also responsible for increasing cash holdings

Reference no: EM132449824

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