TY - JOUR
T1 - The European financial crisis and firms' cash holding policy
T2 - An analysis of the precautionary motive
AU - Lozano, Maria Belén
AU - Yaman, Serhat
N1 - Publisher Copyright:
© 2020 University of Durham and John Wiley & Sons, Ltd
PY - 2020/1/1
Y1 - 2020/1/1
N2 - This paper analyzes the relation between the 2008 European financial crisis and firms' cash holding policies from a precautionary motive perspective. After considering how the European financial crisis affected the cash holding policy across different period times, we focus on whether these variations come from changes in precautionary motives. We find a positive effect for the short crisis period and a negative effect for long crisis period for the full sample. We also find evidence that for financially constrained firms, the relation between cash volatility and cash holding is positive for short crisis period but turns negative for the long crisis period.
AB - This paper analyzes the relation between the 2008 European financial crisis and firms' cash holding policies from a precautionary motive perspective. After considering how the European financial crisis affected the cash holding policy across different period times, we focus on whether these variations come from changes in precautionary motives. We find a positive effect for the short crisis period and a negative effect for long crisis period for the full sample. We also find evidence that for financially constrained firms, the relation between cash volatility and cash holding is positive for short crisis period but turns negative for the long crisis period.
KW - Financial crisis
UR - http://www.scopus.com/inward/record.url?scp=85078167345&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/bd1d55c7-c955-3446-820e-11174ca85446/
U2 - 10.1111/1758-5899.12768
DO - 10.1111/1758-5899.12768
M3 - Article in a journal
SN - 1758-5880
VL - 11
SP - 84
EP - 94
JO - Global Policy
JF - Global Policy
IS - S1
ER -
