I explore the role of the Just-in-Time (JIT) inventory system in the increase of cash holdings among U.S. manufacturing firms. I first demonstrate the empirical importance of JIT in shaping cash policy. I then develop a model to analyze the mechanism through which JIT affects cash and quantify its impact. In the model, both cash and inventory can serve as working capital. As firms switch from t...

This paper examines how credit risk spillovers affect corporate financial flexibility. We construct separate empirical proxies to disentangle the two channels of spillovers—credit contagion (CRC), where one firm's default increases distress likelihood another; and product market rivalry (PMR), same strengthens position a competitor. show that firms facing greater CRC have weaker subsequent oper...

Using a large sample of 3,541 companies drawn from 30 countries over the period 2002 to 2010 we analyse the impact of strategic shareholdings on different elements of corporate social responsibility (CSR). We find that total strategic or closely held equity holdings adversely affect the environmental, social and governance scores provided by ASSET4. However, this effect is largely driven by ent...

With the outbreak of Russia-Ukraine conflict, combined with COVID-19 epidemic and Federal Reserve’s interest rate hike, geopolitical risks have increased sharply, which has brought great pressure on sustainable development natural resources industry. This study aims to discuss impact risk (GPR) corporate excess cash holdings in China’s The findings suggest that GRP can encourage enterprises ind...

Bank liquidity management has become a major issue during the financial crisis as liquidity shortages have intensified and have put pressure on banks to diversity and improve their liquidity sources. While a significant strand of the literature concentrates on wholesale liquidity generation and on the alternative to deposit funding, the management of an inventory of cash holdings within the ban...