What is a Dollar Worth? The Market Value of Cash Holdings

By Lee Pinkowitz, Rohan Williamson. 2002

186 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/3fb2c7a09981ef04a707b91383c311fdcea24c9d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

In Strategy and Management

Citations in the corpus

Corporate Cash Holdings and CEO Compensation Incentives (2011, unknown): “9 Thus, for example, we cannot use a total firm value approach to estimate the value of cash as in Pinkowitz and Williamson (2004) and Pinkowitz, Stulz, and Williamson (2006), since our hypotheses give different predictions about how equityholders and debtholders view the marginal value of cash.”
Does the Contribution of Corporate Cash Holdings and Dividends to Firm Value Depend on Governance? A Cross‐country Analysis (2006, background): “The equations we estimate are similar to those estimated by Pinkowitz and Williamson (2005) for the United States, except that we allow the intercept and slopes to differ for countries with better institutions.”
International Evidence on Cash Holdings and Expected Managerial Agency Problems (2007, background): “Ample empirical evidence suggests that cash holdings are valuable when underinvestment costs are high [Harford (1999), Opler, Pinkowitz, Stulz, and Williamson (1999), Pinkowitz and Williamson (2005), Mikkelson and Partch (2003) and Almeida, Campello, and Weisbach (2003)].”
Firm Cash Holdings and CEO Inside Debt (2013, methodology): “36 Note that it would not be appropriate to use a total firm value approach to estimate the value of cash as in Pinkowitz and Williamson (2004) and Pinkowitz et al.”
Financial Constraints, Investment, and the Value of Cash Holdings (2010, unknown): “7 We also estimate the value of cash using the methodology of Pinkowitz and Williamson (2006) in which the market-to-book ratio is regressed on cash holdings and a set of control variables. In addition, we estimate models using a two-stage procedure in which we first estimate the firm’s normal cash-”
Excess Cash and Stock Returns (2010, unknown): “In related research, Riddick and Whited (2009) use theory and simulation to demonstrate that in the presence of positively correlated income shocks, firms that generate high cash flow find it more valuable to invest this cash flow rather than keep it as savings.”
Information Asymmetry and the Value of Cash (2007, unknown): “14 The values are very similar to those presented in Pinkowitz and Williamson (2004).”
Corporate cash holding and firm value (2010, background): “…et al. (1998), Pinkowitz, Stulz, and Williamson (2001) who employed a panel of US industrial firms to study determinants of cash holding, and Opler, Pinkowitz and Willianson (2004) who used a sample of industrial firms from US, Germany, and Japan to study the effect of bank power on cash holdings.”
Why Has the Value of Cash Increased Over Time? (2018, unknown): “When we use the alternative cash valuation model of Pinkowitz and Williamson (2004), we find a similar secular trend.”
Corporate Financial Policy and the Value of Cash (2004, unknown): “Following Fama and French (1998) and Pinkowitz and Williamson (2004), earnings are calculated as earnings before extraordinary items plus interest, deferred tax credits, and investment tax credits (18+15+50+51).”
Underinvestment vs. overinvestment: Evidence from price reactions to pension contributions (2009, background): “As in Rauh’s (2006) approach, controlling for the funding status identifies mandatory contributions as a cash flow decrease that is exogenous with respect to investment opportunities. Therefore, the coefficient β2 captures the incremental effect of either financial constraints or empire-building on ”
Corporate governance and the value of cash holdings. (2007, unknown): “2 See also Pinkowitz and Williamson (2004) for a study of the value of cash without controlling for governance.”