Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264938 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 16/2021
Publisher: 
Norges Bank, Oslo
Abstract: 
Using new transaction-level data for non-financial commercial paper (CP) in the U.S., we show that companies systematically reduce their outstanding short-term debt on quarterly and annual disclosure dates. Constraints on CP lending supply cannot explain this pattern. Instead, companies optimize their disclosed liquidity buffers and strategically repay CP debt if doing so strengthens common accounting ratios, such as the current ratio. Unlike other CP issuers, firms that repay their CP debt neither hold lower cash buffers nor use CP as bridge financing, suggesting an alternative role of CP debt as "hidden liquidity buffer".
Subjects: 
Commercial paper
balance sheet management
disclosure
cash management
window dressing
JEL: 
G32
G23
G14
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-215-7
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





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