Cash Reserves as a Hedge against Supply-Chain Risk
| Autor: | Shawn Thomas, Manoj Kulchania |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
040101 forestry
Supply chain risk management Economics and Econometrics 050208 finance media_common.quotation_subject 05 social sciences 04 agricultural and veterinary sciences Monetary economics Trucking industry Deregulation Accounting Cash Cash holdings Capital (economics) 0502 economics and business 0401 agriculture forestry and fisheries Business Hedge (finance) Finance media_common |
| Zdroj: | Journal of Financial and Quantitative Analysis. 52:1951-1988 |
| ISSN: | 1756-6916 0022-1090 |
| Popis: | Deregulation of the trucking industry and significantly lowered transportation costs led to large, widespread, and plausibly exogenous reductions in inventory for U.S. firms, with consequent increased supply-chain disruption (SCD) costs. We find evidence that increased SCD costs help explain the puzzling long-term trend of increasing average U.S. firm cash holdings. We also find that firms facing higher expected costs of disruptions generally save more cash from capital freed up via supply-chain management innovations. Finally, we document significant postdisruption declines in cash holdings consistent with cash as a primary source of financing during disruptions. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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