The optimal way to increase cash holdings: From a market perspective - a study of various ways to increase cash holdings and their implications on market value during economic boom and recession
The main purpose of this paper is to identify a relationship between different approaches to accumulate cash and companies’ market values between periods of different economic conditions. Our thesis contributes with information that helps firm managers decide how to increase cash holdings. We come to the conclusion that firms increase their cash holdings by decreasing investments in research and d
