The Determinants of Corporate Cash Management Policy: Evidence from Around the World

Project: Research

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The stream of research on corporate cash management policies has received increasing attention. In this project, the researchers seek to examine the determinants of corporate cash management policy across a broad sample of international firms. Using financial data from 43 countries over the period 1985–2004, they will examine (1) whether the legal protection of investors influences the sensitivity of a firm's cash holdings to an increase in cash flow (and stock price), and (2) the effect of financial constraints on the sensitivities of cash to both cash flow and stock prices. The results will offer further insights on the importance of both country-level institutional factors and firm-level financial constraint in managers' corporate cash management policies.


Project number7200104
Effective start/end date1/09/0717/12/09