Corporate Cash Holdings

Abstract

Corporate cash has become an increasingly large component of corporate balance sheets over the past fifty years. We survey the literature on corporate cash holdings that assesses (i) cross-sectional and time-series patterns in cash holdings; (ii) theoretical explanations for these patterns; and (iii) recent empirical evidence that sheds light on the primary causes and consequences of such holdings.

Keywords: Cash holdings; Precautionary savings; Agency costs; Repatriation; External financing; Investmentma separated]

JEL Classification: G32, G34, G35