Non-Linear Target Adjustment in Corporate Liquidity Management: An Endogenous Thresholds Approach
AbstractWe provide new empirical evidence on non- linear liquidity management in Dutch firms. Our results reveal that liquidity adjustment from below the target is significantly faster than from above. We find no evidence for bands of inaction around the target.
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Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 087.
Date of creation: Feb 2006
Date of revision:
Corporate liquidity management; Non-linear adjustment; Endogenous thresholds; Panel approach.;
Other versions of this item:
- W. Allard Bruinshoofd & Clemens Kool, 2009. "Nonlinear target adjustment in corporate liquidity management: an endogenous thresholds approach," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2125-2131.
- A. Bruinshoofd & C.J.M. Kool, 2006. "Non-linear target adjustment in corporate liquidity management : an endogenous thresholds approach," Working Papers 06-15, Utrecht School of Economics.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
- G3 - Financial Economics - - Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-19 (All new papers)
- NEP-BEC-2006-02-19 (Business Economics)
- NEP-FIN-2006-02-19 (Finance)
- NEP-FMK-2006-02-19 (Financial Markets)
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