학회소식
공지사항
[2011년 제 4차] Has The Value Of Cash Increased Over Time?
작성자 : 관리자
조회수 : 855
게시일 :
2011-12-07
We investigate how the marginal market value of one dollar of cash changes from 1980 to 2007. We document a dramatic increase in the value of cash holdings over our sample period. Specifically, the market value of a dollar retained in a firm increases from $0.68 in the 1980s to $1.12 in the 2000s, indicating that shareholders place much more value on cash in more recent years than in earlier years. We further consider various firm and industry characteristics that are relevant to the value of cash and examine whether changes in these firm and industry characteristics can explain the increase in the value of cash. We find that increased cash value over time is largely attributable to improved corporate governance and increased investment opportunities.