Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159817
Authors: 
Agliardi, Elettra
Agliardi, Rossella
Spanjers, Willem
Year of Publication: 
2014
Series/Report no.: 
Quaderni - Working Paper DSE 979
Abstract: 
This paper addresses the following unresolved questions: Why do some firms issue equity instead of debt? Why did most firms retain their cash holdings instead of distributing them as dividends in recent times? How do firms change their financing policies during a period of severe financial constraints and ambiguity, or when facing the threat of an unpredictable financial crisis? We analyze how the values of the firm's equity and debt are affected by ambiguity. We also show that cash holdings are retained longer if the investors' ambiguity aversion bias is sufficiently large, while cash holdings become less attractive when the combined impact of ambiguity and ambiguity aversion is relatively low.
JEL: 
G30
G32
D01
D81
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
387.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.