In this paper we provide evidence on how firm-specific and macroeconomic uncertainty affects shareholders’ valuation of a firm’s cash holdings. This extends previous work on this issue by highlighting the importance of the source of uncertainty. Our findings indicate that increases in firm-specific risk generally increase the value of cash while increases in macroeconomic risk generally decreas...

We investigate a firm’s joint decision to hold cash and to hedge in the presence of financial constraints. The predictions are tested using a sample of manufacturing firms. We confirm the existing evidence of a positive sensitivity of cash holdings to cash flow for financially constrained firms. More importantly, we find a positive sensitivity of hedging to cash flow for constrained firms and, ...

This study examines the role of insider holdings in affecting the decision to announce a repurchase and the associated announcement period stock returns using a conditional event study methodology. We find that firms are more likely to buy back shares if the insiders have large shareholdings and we find that the announcement period returns are greater for firms where insiders have larger holdin...

We examine the impact on firm cash holdings of uncertainty uncertainty, measured as ex post volatility economic policy uncertainty. Using news-based index developed by Baker et al. (2016) for twenty-two countries, we find that, when there is greater firms hold more cash. Our results are robust to controlling a host firm-level and country-level factors. Consistent with (2016), consider that less...

The management of cash requires careful considerations to allow firms benefit from proper resource allocations while mitigating agency issues. Accounting comparability can play an important role in tackling information asymmetry and cost, thus enabling managers hoard more cash. This research aims investigate the link between accounting holdings emerging market. Using a sample listed Vietnam 201...