ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Cash and Cash-Equivalent Holdings of Companies

Incentives for holding cash and cash-equivalents vary. The authors suggest that companies that have more block-shareholders have a lesser incentive to hold cash and cash-equivalents. Also, monitoring by debt-holders reduces their incentive to retain excess cash. Besides, after controlling for the group affiliation, size, tangibility of assets, and profitability of the company, aggregate corporate shareholdings were also found to influence the holding of cash.

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