Abstract
We reexamine the widely accepted phenomenon that U.S. corporations are holding increasing amount of cash in the last few decades. We document that increase in cash holdings (scaled by the market value of assets) is a smaller and narrower phenomenon. We find that the average amount of cash holdings went up from 9.6% during the period 1980-84 to 11.1% during 2010-14. We also find that most of the increase in cash holdings can be attributed to smaller firms and firms in only two sectors, namely, healthcare, and hitech sectors. Finally, we also document that this phenomenon of an increase in cash holding for the healthcare and hi-tech sectors is not random but spans the entire period in our sample.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
