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Why are corporations holding so much cash?

Author

Listed:
  • Juan M. Sánchez
  • Emircan Yurdagul

Abstract

U.S. corporations are holding record-high amounts of cash. One reason has to do with taxes—both the uncertainty about future taxes and the reality of today’s tax rules. The second reason has to do with the rise of research and development; because of its uncertain nature, this sort of work requires access to high levels of cash.

Suggested Citation

  • Juan M. Sánchez & Emircan Yurdagul, 2013. "Why are corporations holding so much cash?," The Regional Economist, Federal Reserve Bank of St. Louis, issue Jan.
  • Handle: RePEc:fip:fedlre:y:2013:i:jan
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    Citations

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    Cited by:

    1. repec:eee:jbfina:v:81:y:2017:i:c:p:24-35 is not listed on IDEAS
    2. Yuko Hashimoto & Noriaki Kinoshita, 2016. "The Financial Wealth of Corporations; A First Look at Sectoral Balance Sheet Data," IMF Working Papers 16/11, International Monetary Fund.
    3. Michalis Nikiforos, 2014. "Distribution-led Growth in the Long Run," Economics Working Paper Archive wp_814, Levy Economics Institute.
    4. Iuliana Oana Mihai & Riana Iren Radu, 2015. "A Literature Review Of Companies Cash Holdings," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 346-352.
    5. repec:eee:moneco:v:87:y:2017:i:c:p:13-33 is not listed on IDEAS
    6. repec:eee:jfinec:v:125:y:2017:i:2:p:344-368 is not listed on IDEAS
    7. International Monetary Fund, 2014. "Canada; Selected Issues," IMF Staff Country Reports 14/28, International Monetary Fund.
    8. Meir Russ & Bino Catasùs, 2014. "Editorial. Intellectual Capital and Management Control: Human Capital Valuation and other challenges," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(2), pages 5-21.
    9. repec:spt:apfiba:v:7:y:2017:i:6:f:7_6_3 is not listed on IDEAS
    10. Sorin Gabriel Anton, 2016. "Cash Holdings and Firm Value: A Study of Listed Firms in Romania," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 409-414, February.
    11. Liu, Qigui & Luo, Tianpei & Tian, Gary Gang, 2015. "Family control and corporate cash holdings: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 31(C), pages 220-245.
    12. Joseph W. Gruber & Steven B. Kamin, 2016. "The Corporate Saving Glut and Falloff of Investment Spending in OECD Economies," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(4), pages 777-799, November.

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