MARC Record from Library of Congress

LEADER: 02103nam a22003137a 4500
001 2006619729
003 DLC
005 20061013083425.0
007 cr |||||||||||
008 061012s2006 mau sb 000 0 eng
010 $a 2006619729
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aBates, Thomas W.
245 10 $aWhy do u.s. firms hold so much more cash than they used to?$h[electronic resource] /$cThomas W. Bates, Kathleen M. Kahle, Rene M. Stulz.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2006.
490 1 $aNBER working paper series ;$vworking paper 12534
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 10/12/2006.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"The average cash to assets ratio for U.S. industrial firms increases by 129% from 1980 to 2004. Because of this increase in the average cash ratio, American firms at the end of the sample period can pay back their debt obligations with their cash holdings, so that the average firm has no leverage when leverage is measured by net debt. This change in cash ratios and net debt is the result of a secular trend rather than the outcome of the recent buildup in cash holdings of some large firms. It is concentrated among firms that do not pay dividends. The average cash ratio increases over the sample period because the cash flow of American firms has become riskier, these firms hold fewer inventories and accounts receivable, and the typical firm spends more on R&D. The precautionary motive for cash holdings appears to explain the increase in the average cash ratio"--National Bureau of Economic Research web site.
700 1 $aThomas, Bates W.
700 1 $aKahle, Kathleen M.
700 1 $aStulz, Rene M.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 12534.
856 40 $uhttp://papers.nber.org/papers/w12534