Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18531| Title: | The Effects of Industry-Level Uncertainty on Cash Holdings: The Case of Germany |
| Keywords: | L14 G31 G32 ddc:330 Uncertainty cash holdings liquidity non-financial firms Betriebliche Liquidität Unternehmenswert Verarbeitendes Gewerbe Schätzung Deutschland |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Deutsches Institut für Wirtschaftsforschung (DIW) Berlin |
| Description: | This paper investigates the link between the optimal level of non-financial firms' liquid assets and industry-level uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as industry-level uncertainty increases the firm will increase its optimal level of liquidity. We test this hypothesis using a panel of German firms drawn from the Bundesbank's balance sheet database and show that greater uncertainty at the industry level causes firms to increase their cash holdings. The strength of these effects differ among subsamples of the firms with different characteristics. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/18531 |
| Other Identifiers: | http://hdl.handle.net/10419/18531 ppn:519892011 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.