Abstract Since the early 1980s, composition of US public firms has progressively shifted toward less profitable with high growth potential (Fama and French, 2004). We estimate a dynamic corporate finance model to quantify role this selection mechanism for secular trend in cash holdings among firms. find that an increase precautionary savings motive—primarily driven by decline initial profitabil...

The restrictions of a shariah-compliant index could have consequences for corporate finance. This research investigates the difference in cash holding policies between and conventional firms Indonesia capital market. Our empirical results suggest that firm holds significantly less compared to firm. finding still maintains after excluding top performers market controlling other proxies holdings ...