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Various Implications of Excessive and Insufficient Cash Balances for Corporations
Author(s) -
Prescott Gregory L.
Publication year - 2015
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22094
Subject(s) - cash , cash flow , balance sheet , cash flow statement , business , finance , accounting , stock (firearms) , operating cash flow , economics , mechanical engineering , engineering
At the end of 2014, corporate balance sheets were overflowing with a record level of cash and other liquid investments. While congressional leaders have implored U.S. businesses to use those cash balances to fund capital investments and employ more Americans, in recent years academic researchers have explored the potential for those cash holdings to impact firms' refinancing risk, operating performance metrics, stock returns, and other elements related to firm value. This article reports the findings of four studies published in recent years in accounting and finance journals on the subject of cash holdings and various topics of interest to chief financial officers, controllers, and other financial professionals. © 2015 Wiley Periodicals, Inc.