Dynamical adjustment of cash holdings in operations management

Guojun Li, Kristine Watson Hankins

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This paper empirically studies how do firms adjust cash holdings dynamically. The analysis reveals that firms have an optimal level of cash holdings, and tend to adjust the cash holdings toward the optimal level. Moreover, additional tests indicate that the speed of adjustment has asymmetric feature, which the speed in the under group is faster than that in the partial group. Overall, our results provide that compelling evidence firm's cash policy encompasses a substantial and valuable strategic dimension.

Original languageEnglish
Title of host publicationAdvanced Manufacturing Technology
Pages2003-2007
Number of pages5
DOIs
StatePublished - 2011
Event2011 International Conference on Advanced Design and Manufacturing Engineering, ADME 2011 - Guangzhou, China
Duration: Sep 16 2011Sep 18 2011

Publication series

NameAdvanced Materials Research
Volume314-316
ISSN (Print)1022-6680

Conference

Conference2011 International Conference on Advanced Design and Manufacturing Engineering, ADME 2011
Country/TerritoryChina
CityGuangzhou
Period9/16/119/18/11

Keywords

  • Cash holding
  • Dynamical adjustment
  • Operations management

ASJC Scopus subject areas

  • General Engineering

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