Furthermore, efficient cash management is expected to significantly improve both the profitability and growth of a company. As a result of globalisation and the competitive environment, companies are seeking more sophisticated cash management solutions and focusing on standardised processes and strengthening internal controls, which will lead to a higher degree of centralisation of cash managem...

This paper examines how equity analysts affect corporate liquidity policy and the value of cash. Greater analyst coverage reduces information asymmetry between a firm and outside shareholders and enhances the monitoring process, in turn increasing the value of cash and allowing firms to hold more cash. The cash-to-assets ratio increases by 5.2 percentage points when moving from the bottom analy...

colleagues at the Belfer Center and the School, and many seminar participants. This study is sponsored in part by the U.S. Environmental Protection Agency; however, I am solely responsible for its contents and views. All data used in the analysis are public records, and program codes to process them are available upon request.

The Distribution of Full Income in Greece Non-cash incomes from either private or public sources can have substantial effects on the distribution of economic welfare. However, standard approaches to inequality measurement either neglect them or take into account only selected non-monetary items. Using data for Greece in the mid 2000s we show that it is possible to incorporate a comprehensive li...

The ubiquitous payment problems within construction industry of China are notoriously hard to be resolved, thus lead to a series of impacts to the industry chain. Among of them, the most direct result is affecting the normal operation of contractors negatively. A wealth of research has already discussed reasons of the payment problems by introducing a number of possible improvement strategies. ...

Caldwell hypothesized that: 1) Indian daughters-in-law have less autonomy if they live with their mothers-in-law; but 2) even then, they can gain situational advantage over her if they are educationally superior to her. We tested these two hypotheses with data from the National Family Health Survey II (1998–1999) in the Republic of India. We measured women’s autonomy along three dimensions: a w...

Q, Cash Flow and Investment: An Econometric Critique The effects of measurement and speci…cation error on estimates of the Q and cash ‡ow model of investment are investigated. Two sources of error are considered: expensing of R&D expenditures and failing to identify that component of cash ‡ow which relaxes …nancing constraints. We apply random-effects and instrumental variables estimators to a ...

The dynamic replication strategy of Black and Scholes is important enough that it is worth repeating from last week. Recall the setup. From day k − 1 to day k, the stock (risky asset price) either goes up Sk−1 → Sk = uSk or goes down Sk = dSk−1 (recall that we actually did not necessarily need u > 1 or d < 1, but it is convenient to think of u as up and d as down.) The replicating portfolio is ...

One of the most popular procedures used in selection processes is the employment/selection interview (Dipboye, 1992). A selection interview is defined by Dipboye as “a dialogue initiated by one or more persons to gather information and evaluate the qualifications of an applicant for employment.” Some researchers choose the term “recruitment interview” to imply that the interview is a “two-way p...

The purpose of this paper is to investigate the causes and consequence of cash flow sensitivity. While cash flow has been regarded as an agency problem, empirical investigations in context of managerial conservatism or optimizing behavior are limited. In this paper we investigate two key aspects of cash flow sensitivity: whether cash flow sensitivity causes variations in fixed asset investments...