Home > Faculty & Research > Publications >

Uncertainty and the Value of Cash Holdings

by Hyun Joong Im, Heungju Park, and Gege Zhao

ARTICLE | Economics Letters | Vol. 155, 2017


We find that a firm facing higher uncertainty has a higher value of cash. This effect is attributed to the increased value of the option to wait and see as well as the aggravated financial constraints and mitigated agency conflicts.
Popular Articles
Latest News
Campus Events