Abstract
PurposeThe purpose of the study is to investigate the impact of asset redeployability on the level of corporate cash holdings.Design/methodology/approachThe authors use regression analysis to examine the relation between asset redeployability and corporate cash holdings.FindingsUsing a large panel sample of US public firms from 1990 to 2020, the authors find a significant positive relation between asset redeployability and cash, which suggests that firms with more redeployable assets hold more cash.Originality/valueThe authors contribute to a growing literature in accounting and finance that investigates the impact of asset redeployability on firm characteristics and also contribute to the literature on the determinants of cash holdings.
Subject
Business, Management and Accounting (miscellaneous),Finance
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