Researchers have pointed to multiple reasons, including flexibility for M&A and tax advantages. But new research suggests it's also a form of insurance, especially for smaller firms. Their likelihood of experiencing an adverse event (measured by the chance of being delisted) is significantly higher when they hold less cash.
Even as interest rates have risen, cash now represents $1 out of every $5 of total assets held by non-banking U.S. firms, according to our research.
[
Collection
]
[
|
...
]