Cash Holdings and Credit Risk

By V. Acharya, Sergei Davydenko, Ilya A. Strebulaev. 2012

376 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/51057a48d3164f0dd74bcea7a93aecc3afc443a4

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Citations in the corpus

COVID-19 Pandemic and Firm-level Cash Holding—Moderating Effect of Goodwill and Goodwill Impairment (2020, background): “Acharya, Davydenko, and Strebulaev (2012) found a significant positive correlation between future cash fluctuations and corporate cash holdings.”
Corporate debt, firm size and financial fragility in emerging markets (2019, background): “Acharya et al. (2015) present several case studies and evaluate vulnerabilities and potential policy responses.”
Firm Cash Holdings and CEO Inside Debt (2013, background): “(2012), and Anantharaman et al. (2013) document the increasing contribution of pensions and deferred compensation for the ExecuComp universe of firms starting with the period from 2006 when the SEC’s executive compensation disclosure requirements were expanded to include pensions and deferred compen”
The Determinants of Operational Risk in U.S. Financial Institutions (2011, methodology): “Acharya et al. (2007) argue that the positive relation between cash holdings and credit risk is explained by a precautionary savings motive.28 However, the precautionary motive to save is presumably less important among banks, because depository institutions are insured by the FDIC and have access…”
CEO overconfidence and the value of corporate cash holdings (2019, positive): “At the same time, they are expected to implement riskier firm policies and accumulate optimally higher cash reserves (Acharya et al. (2012)).”
Climate Change and Corporate Cash Holdings: Global Evidence (2020, positive): “Under this situation, the financially constrained firms need to make a choice between the profitability of current and future investments and determine their optimal cash holding policies accordingly (Fazzari et al., 1988; Kaplan and Zingales, 1997; Almeida et al., 2004; Acharya et al., 2012).”
Have Rating Agencies Become More Conservative? Implications for Capital Structure and Debt Pricing (2013, result): “While the impact of cash holdings on debt ratings appears counter-intuitive, it is consistent with the theoretical and empirical work in Acharya, Davydenko, and Strebulaev (2012), who argue that firms with higher default risk in the longrun are more likely to save cash.5 From our perspective, the…”
Using 10-K Text to Gauge Financial Constraints (2015, result): “In contrast to KZ, other papers have argued that high cash holdings are an indication that the firm is constrained (see Harford (1999), Opler, Pinkowitz, Stulz, and Williamson (1999), and Acharya, Davydenko, and Strebulaev (2012)).”
Dynamic Models and Structural Estimation in Corporate Finance (2012, background): “Incorporating a cash policy in this setup reduces tractability, though studies of cash policy in the presence of debt in di↵erent setups suggest that it is an important issue (see e.g., Acharya, Davydenko, and Strebulaev 2012; Anderson and Carverhill 2012).”