منابع مشابه
Latent Liquidity: A New Measure of Liquidity, with an Application to Corporate Bonds
We present a new measure of liquidity known as “latent liquidity” and apply it to a unique corporate bond database. Latent liquidity is defined as the weighted average turnover of investors who hold a bond, where the weights are the fractional investor holdings. It can be used to measure liquidity in markets with sparse transactions data. For bonds that trade frequently, our measure has predict...
متن کاملLatent Liquidity: A New Measure of Liquidity, with an Application to Corporate Bonds
We present a new measure of liquidity known as “latent liquidity” and apply it to a unique corporate bond database. Latent liquidity is defined as the weighted average turnover of investors who hold a bond, where the weights are the fractional investor holdings. It can be used to measure liquidity in markets with sparse transactions data. For bonds that trade frequently, our measure has predict...
متن کاملCorporate Liquidity
Agency problems are an important determinant of corporate liquidity. For a sample of more than 11,000 firms from 45 countries, we find that corporations in countries where shareholders rights are not well protected hold up to twice as much cash as corporations in countries with good shareholder protection. In addition, when shareholder protection is poor, factors that generally drive the need f...
متن کاملCorporate liquidity and solvency
This paper studies the impact of both solvency and liquidity concerns on corporate nance. The rm optimally chooses capital structure, cash holdings, dividends and default while facing stochastic cash ows with two sources of uncertainty. The expected cash ows are uncertain and low pro tability leads to solvency distress. Moreover, cash ows are subject to liquidity shocks that cause liquidit...
متن کاملUncertainty Determinants of Corporate Liquidity
This paper investigates the link between the optimal level of non–financial firms’ liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for cash that shows that firms are likely to change their liquidity ratio in response to changes in uncertainty. We test this proposition using a panel of non–financial US firms drawn from COMPUSTAT quarterly database co...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1106852