Is Cash Negative Debt? A Hedging Perspective on Corporate Financial Policies

By V. Acharya, Heitor Almeida, Murillo Campello. 2007

952 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/54cc98bf85289e156306afd46339b1db883dfd16

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Citations in the corpus

The Value of Financial Flexibility (2008, neutral): “Acharya, Almeida, and Campello (2006) also examine why cash is not the same as negative debt.”
Sharing Risk with the Government: How Taxes Affect Corporate Risk Taking (2017, neutral): “However, in the presence of financial frictions, non-operating cash should not be viewed as negative debt (Acharya, Almeida, and Campello 2007).”
The international zero-leverage phenomenon (2013, positive): “Hennessy and Whited (2005) and Acharya et al. (2007) simultaneously analyze financing and cash holding decisions.”
Liquidity and Transparency in Bank Risk Management (2013, neutral): “There exist parameter values (1) or (2), such that it is optimal that a bank is both liquid and transparent.”
Cash holdings and employee welfare (2013, positive): “In a robustness test (unreported), we apply the methodology of Acharya, Almeida, and Campello (2007) and find that the relation between EWI and cash remains significantly positive for a subsample of constrained firms with high hedging needs for which cash is distinct from negative debt.”
Liquidity Management and Corporate Investment During a Financial Crisis (2011, positive): “Theories looking at the role of cash in providing for liquidity insurance have largely discussed its role in transferring funds across time (Almeida et al. (2004)) or across states of the world (Acharya et al. (2007)).”
Corporate precautionary cash holdings (2007, positive): “…it increases the level of the future cash by the same amount in every state of the future. as much as predicted by our model or that of ACW, because the positive correlation implies that the need for future financing is positively correlated with the future cash flow (see Acharya et al., 2005).”
The Mystery of Zero-Leverage Firms (2013, neutral): “For the analysis of corporate cash policy and differences between cash and negative debt , see Acharya , Almeida , and Campello ( 2007 ) , Gamba and Triantis ( 2008 ) , and Acharya , Davydenko , and Strebulaev ( forthcoming ) .”