| Registro completo |
| Provedor de dados: |
31
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| País: |
United States
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| Título: |
Dutch corporate liquidity management: New evidence on aggregation
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| Autores: |
Bruinshoofd, W. Allard
Kool, Clemens J.M.
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| Data: |
2008-06-26
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| Ano: |
2004
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| Palavras-chave: |
Corporate liquidity demand
Precautionary liquidity
C33
C43
E41
G3
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| 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.
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| Tipo: |
Journal Article
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| Idioma: |
Inglês
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| Identificador: |
Print ISSN 1514-0326
Online ISSN 1667-6726
http://purl.umn.edu/37606
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| Relação: |
Journal of Applied Economics>Volume 7, Number 2, November 2004
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| Formato: |
36
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