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dc.contributor.authorBarnes, Michelle L.en_US
dc.contributor.authorPancost, N. Aaronen_US
dc.date.accessioned2011-01-10en_US
dc.date.accessioned2012-02-23T08:01:02Z-
dc.date.available2012-02-23T08:01:02Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/55589-
dc.description.abstractThe rising stockpile of cash as a share of total assets at U.S. firms has intrigued economists since at least the paper of Bates, Kahle, and Stulz (2006), yet there has been relatively little work on where this cash has come from and how it is related to investment performance. We exploit Statement of Cash Flows data from Compustat to decompose firms' cash stocks and show that the rise in cash holdings has coincided with an increased willingness to save internally generated cash. We show that although investment is normally sensitive to externally generated cash, the increased sensitivity of investment to cash during the Great Recession is driven by cash from internal sources. Smaller firms were also more affected by the recent downturn than larger firms. Our results agree with the findings of Almeida, Campello, and Weisbach (2004) on cash hoarding and financial constraints, as well as the estimates in Duchin, Ozbas, and Sensoy (2010) on the important role of saved cash during the financial crisis.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of Boston Boston, MAen_US
dc.relation.ispartofseriesWorking paper series // Federal Reserve Bank of Boston 10-15en_US
dc.subject.jelG01en_US
dc.subject.jelG31en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordcorporate investmenten_US
dc.subject.keywordcorporate liquidityen_US
dc.subject.keywordcashen_US
dc.subject.keywordfinancial constraintsen_US
dc.subject.keywordGreat Recessionen_US
dc.subject.stwKapitalstrukturen_US
dc.subject.stwBetriebliche Liquiditäten_US
dc.subject.stwBetriebliche Investitionspolitiken_US
dc.subject.stwFinanzmarktkriseen_US
dc.subject.stwUSAen_US
dc.titleInternal sources of finance and the great recessionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn642980713en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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