Uncertainty and the value of cash holdings

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 155
Issue: C
Pages: 43-48

Authors (3)

Im, Hyun Joong (University of Seoul) Park, Heungju (not in RePEc) Zhao, Gege (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

View Full Article View on IDEAS/RePEc

Abstract

We find that a firm facing higher uncertainty has a higher value of cash. This effect is attributed to the increased value of the option to wait and see as well as the aggravated financial constraints and mitigated agency conflicts.

Technical Details

RePEc Handle
repec:eee:ecolet:v:155:y:2017:i:c:p:43-48
Journal Field
General
Author Count
3
Added to Database
2026-01-25