Validity of the measurements of value of cash
DOI:
https://doi.org/10.51094/jxiv.578Keywords:
Value of CashAbstract
We have sometimes seen the discourse that the value of cash held by Japanese firms is low. Here, we examine the validity of this conclusion by referring to Faulkender and Wang (2006) and other sources. The two main conclusions are as follows
(1) The paper makes several assumptions that require careful interpretation.
(2) The supposed marginal value of one yen of cash for large firms that increased their cash holdings from the previous year was 0.9 yen.
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Submitted: 2023-12-20 07:43:15 UTC
Published: 2023-12-26 01:03:08 UTC
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Kazuo Yamada
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