Data/hora: 16/06/2024 07:12:36

Provedor de dados: | 31
País: | United States
Título: | Dutch corporate liquidity management: New evidence on aggregation
Autores: | Bruinshoofd,   W. Allard; Kool,   Clemens J.M.
Data: | 2008-06-26
Ano: | 2004
Palavras-chave: | Corporate liquidity demand; Precautionary liquidity; C33; C43; E41; G3.
Resumo: | In this paper we investigate Dutch corporate liquidity management in general, and target adjustment behaviour in particular. To this purpose, we use a simple error correction model of corporate liquidity holdings applied to firm-level data for the period 1977-1997. We confirm the existence of long-run liquidity targets at the firm level. We also find that changes in liquidity holdings are driven by short-run shocks as well as the urge to converge towards targeted liquidity levels. The rate of target convergence is higher when we include more firm-specific information in the target. This result supports the idea that increased precision in defining liquidity targets associates with a faster observed rate of target convergence. It also suggests that the slow speeds of adjustment obtained in many macro studies on money demand are artefacts of aggregation bias.
Tipo: | Journal Article
Idioma: | Inglês

Identificador:

Print ISSN 1514-0326

Online ISSN 1667-6726

http://purl.umn.edu/37606

Relação: | Journal of Applied Economics&gt;Volume 7, Number 2, November 2004
Formato: | 36