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La Sous-Valorisation Des Actifs A Court Terme

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  • Eric Molay

    (GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon)

Abstract

The importance of short-term financial decisions to company's value is considered by testing the following hypotheses: an extra euro invested in cash or in net working capital is valued less than one euro. Running panel data regressions, evidences prove that shareholders undervalue cash holdings and net working capital. The results of this paper alert management not to underestimate importance of cash holdings and working capital management; moreover, the results encourage investors to follow company's actions in this area to maximize their return on investment.

Suggested Citation

  • Eric Molay, 2013. "La Sous-Valorisation Des Actifs A Court Terme," Post-Print halshs-00853449, HAL.
    • Handle: RePEc:hal:journl:halshs-00853449
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00853449
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    References listed on IDEAS

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