Corporate Cash and Employment
Bibliographic Data
| ID | 19035158 |
|---|---|
| Authors | Philippe Bacchetta (0000-0001-9233-5040, HEC Lausanne and Swiss Finance Institute, Internef 523, University of Lausanne, 1015 Lausanne, Switzerland (email: ), corresponding author), Kenza Benhima (0000-0002-7765-3398, Internef 522, University of Lausanne, 1015 Lausanne, Switzerland (email: )), Céline Poilly (Aix-Marseille University, Centrale Marseille, IRD, AMSE, Marseille, France, 5 Boulevard Bourdet, 13001, CNRS, and EHESS (email: )) |
| Year | 2019 |
| Volume | 11 |
| Issue | 3 |
| Pages | 30-66 |
| Publication date | 2019-06-28 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | American Economic Journal Macroeconomics (JOURNAL) |
| Journal identifiers | ISSN: 1945-7715 • E-ISSN: 1945-7707 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/mac.20150191 |
| OpenAlex | W3122935805 |
| Language | EN |
| Citations received | 1 |
| References cited | 3 |
In the aftermath of the US financial crisis, both a sharp drop in employment and a surge in corporate cash have been observed. In this paper, based on US data, we argue that the negative relationship between the corporate cash ratio and employment is systematic, both over time and across firms. We develop a dynamic general equilibrium model where heterogenous firms need cash and external liquid funds in their production process. We analyze the dynamic impact of aggregate shocks and the cross-firm impact of idiosyncratic shocks. We show that external liquidity shocks generate a negative comovement between the cash ratio and employment, as documented in the data. (JEL E24, E32, G32, J23)
Business · Cash · Economics · Financial crisis · General equilibrium theory · Macroeconomics · Market liquidity · Monetary economics · Banking stability, regulation, efficiency · Economic theories and models · Firm Innovation and Growth · Finance
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2023 - 2023 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |