Graduation Year
Fall 2011
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics-Accounting
Reader 1
George Batta
Reader 2
Gregory Hess
Rights Information
© 2011 Yun Lai (William) Li
Abstract
The paper explores the driving forces behind corporate cash holdings by analyzing past literature and extending this research to the behavior of firms after the 2008 recession. I look at the cash to assets and net debt to assets ratios from October 1980 to October 2011 to obtain an understanding of the past and current state of cash holdings. A comprehensive literature review is done on agency costs and transactional motives to give the reader an overview of the costs and benefits of holding cash. This provides the foundation for the precautionary motives for companies today to keep cash as a risk management tool.
Recommended Citation
Li, Yun Lai (William), "Determinants of Corporate Cash Holdings" (2011). CMC Senior Theses. 276.
https://scholarship.claremont.edu/cmc_theses/276
Included in
Accounting Commons, Business Administration, Management, and Operations Commons, Business and Corporate Communications Commons, Corporate Finance Commons, Finance and Financial Management Commons
