Cash Holdings, Working Capital and Firm Value: Evidence from France

Ruta Autukaite and Eric Molay ()
Additional contact information
Eric Molay: GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon

Post-Print from HAL

Abstract: The importance of short-term financial decisions to a company's value is considered in this paper by testing whether an extra euro invested in cash or in net working capital is valued at less than one euro. By running panel data regressions, the presented evidence proves that shareholders undervalue cash holdings and net working capital. The results of this paper alert management not to underestimate the importance of cash holdings and working capital management; moreover, the results encourage investors to follow a company's actions in this area to maximise their returns on investment.

Date: 2014-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Bankers Markets & Investors : an academic & professional review, 2014, 132, pp.53-62

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02099766

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().