Firms hold cash for several reasons, e.g., to seize strategic opportunities as they arise or as a buffer against unexpected shocks. While research has focused on the question as to how much cash a firm should hold, it has mostly ignored how quickly firms move back to their optimal or target cash holdings level once they have been pushed away from that level. Read more here.
I am a full professor at IE Business School in Madrid. On this blog, I discuss my research on corporate governance as well as topical issues on corporate governance and related issues.