The impact of competition and time-to-finance on corporate cash holdings |
| |
| Affiliation: | 1. Independent Researcher;2. University of Southern Denmark, Danish Finance Institute, Campusvej 55, 5230 Odense M, Denmark;1. Department of Business Administration, Toyo University, 5-28-20, Hakusan, Bunkyo-ku, Tokyo 112-8606, Japan;2. Graduate School of Business Administration, Hitotsubashi University, 2-1-2, Hitotsubashi, Chiyoda-ku, Tokyo 101-8439, Japan;1. University of Nevada, Reno, Reno, NV 89557, United States of America;2. School of Finance, Dongbei University of Finance and Economics, Dalian, China;1. Department of Accounting and Finance, University of Bristol, United Kingdom;2. Department of Economics, University of York, United Kingdom |
| |
| Abstract: | This paper empirically documents how the interaction between competition and time frictions in capital markets impacts firms' cash management decisions. Using the introduction of the U.S. Securities Offering Reform in 2005 as a quasi-natural experiment, we show that a shorter time-to-finance leads to a reduction in corporate cash holdings. This effect is significantly stronger for firms that are exposed to preemption risk. Furthermore, patents mitigate the risk of preemption and the effect of a reduction in time-to-finance on cash holdings is strongest for unconstrained firms. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
