This paper empirically examines whether additional future fixed capital and R&D investment expenditures induce firms to accumulate cash reserves while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German companies, we find that firms make larger additions to cash holdings when they plan additional future R&D rather than fixed capital inv...

This paper analyzes how human capital and economic uncertainty affect capital structure and managerial compensation. We model a competitive industry where wealth constrained managers provide human capital that can be transferred across firms, and where equityholders give managers access to the physical assets of the firm. Equityholders and managers bargain for the firm’s stochastic free cash fl...

This study examined the influence of corporate governance on company cash holding by explaining relationship between board size, independence, gender and using a sample 87 non-financial companies including industrial service that listed Amman Stock Exchange from 2018 to 2020. By random-effect generalized least square (GLS) regression model. The findings indicate size negatively influences holdi...

Purpose This paper aims to study the impact of human resource heterogeneity on firms’ cash-holding policies. Design/methodology/approach The authors construct a proxy for using dissimilarity in employees’ skill structure between firm and its peers same industry. Findings report evidence that firms with heterogeneous resources hold more cash than other firms. effect is pronounced labor-intensive...

Abstract This study examines German firms’ managerial decision-making from the perspective of corporate cash holdings. An econometric analysis 89,018 firm-year observations for 2004–2016 shows that East firms hold significantly more than their West counterparts. It is further demonstrated no reasonable hypotheses (i.e. structural differences, access to financing, and historical differences) can...

Abstract The aim of the study is to examine impact financial constraints and distress on cash holdings, both in normal crisis times. We collected 4,406 firm-year observations companies listed Warsaw Stock Exchange (WSE). Our research shows that maintain higher holdings during a than period. However, contrast our expectations, with difficulties (constraints distress) have lower originality lies ...