Cash Holding Adjustments and Firm Entrenchment
Cash Holding Adjustments and Firm Entrenchment
报告人:Zhan Jiang (SUNY-Buffalo)
地点:北京大学光华新楼216教室
摘要:We find that, on average, firms close 36% of their gaps between target and actual cash ratios in each year. As firms become more entrenched, they decelerate their cash adjustment significantly, but only if the actual cash ratio exceeds the target ratio. We interpret this as evidence that self-interested managers are reluctant to disburse excess cash, and will allow cash levels to remain high unless they are subject to external pressure.