In monetary models in which agents are subject to trading shocks there is typically an ex-post inefficiency in that some agents are holding idle balances while others are cash constrained. This inefficiency creates a role for financial intermediaries, such as banks, who accept nominal deposits and make nominal loans. We show that in general financial intermediation improves the allocation and t...

We show theoretically and empirically how real and financial frictions amplify the impact of uncertainty shocks on firms’investment, employment, debt (term structure of debt growth), and cash holding. We start by building a model with real and financial frictions, alongside uncertainty shocks, and show how adding financial frictions to the model roughly doubles the negative impact of uncertaint...

We show theoretically and empirically how real and financial frictions amplify the impact of uncertainty shocks on firms’investment, employment, debt (term structure of debt growth), and cash holding. We start by building a model with real and financial frictions, alongside uncertainty shocks, and show how adding financial frictions to the model almost doubles the negative impact of uncertainty...

In the context of technological innovation promoting long-term sustainable development enterprises, how to better motivate senior executives create greater value for an enterprise is being widely discussed. particular, COVID-19 outbreak has raised concerns about whether companies can deliver more by holding large amounts cash. However, although scholars have conducted a lot research on topics s...

This study develops an inventory model for determining an optimal ordering policy for non-deteriorating items and time-dependent holding cost with delayed payments permitted by the supplier under inflation and time-discounting. The discounted cash flows approach is applied to study the problem analysis. Mathematical models have been derived under two different situations i.e. case I: The permis...

Abstract :The study aims to analyze the effect of company life cycle on cash holding in manufacturing. Data used this is secondary data sourced from annual reports manufacturing companies listed Indonesia Stock Exchange (IDX) during period 2015-2020. The research sample was selected using purposive sampling method so that 23 were sampled. Analysis test hypothesis panel regression analysis E-vie...

This paper provides new evidence on how both governance bundles and directors' social capital together can help to determine cash holdings for foreign cross-listed firms. Using a large cross-country sample of 1677 publicly listed firms from 32 countries during the period 2004–2015, we find positive relationship between with higher capital. We address potential issue endogeneity. Therefore, our ...

A model is developed in which an industry of N $ 1 firms is privatised. The ‘participation’ method of privatisation is used, whereby firms are sold for cash, but the state retains a proportionate share of ownership. In each firm the new private owner has the opportunity to make a reorganisational investment, before output is produced. This investment is unobservable by the state, and therefore ...