The three essays in this dissertation study the impact of corporate liquidity on a firm's value, how corporate liquidity affects the probability of financial distress and equity returns, and whether corporate liquidity represents an idiosyncratic risk, or serves as a priced risk factor.Other firms like Wal-Mart and DuPont tend to keep a low level of financial slack. Holding liquid asset brings benefits to firms, and these benefits also serve as motives for holding cash. (1) The transaction cost motive: Firms need financial slackanbsp;...
|Title||:||Three Essays on Corporate Liquidity, Financial Distress and Equity Returns|
|Publisher||:||ProQuest - 2007|