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Corporate cash and credible commitment
[La trésorerie des entreprises françaises : tentative d'explication par la démarche d'engagement crédible]

Author

Listed:
  • Régis Coeurderoy

    (UCL - Université Catholique de Louvain = Catholic University of Louvain)

  • Henri Koulayom

    (CEREG - CEREBEM - CEREG - CEREBEM)

Abstract

Why do French companies hold so much more cash than they used to two decades ago? We targeted the period 1989-1993 in order to study the emergence of the phenomenon of cash holdings. Using a logistic function to analyse both qualitative and quantitative French firm data from the Central Bank of the « Banque de France », we find that marketable securities are related to the credible commitment hypothesis shown in transaction cost theory, agency theory and the literature on business strategy.

Suggested Citation

  • Régis Coeurderoy & Henri Koulayom, 2007. "Corporate cash and credible commitment [La trésorerie des entreprises françaises : tentative d'explication par la démarche d'engagement crédible]," Working Papers hal-01133764, HAL.
    • Handle: RePEc:hal:wpaper:hal-01133764
    Note: View the original document on HAL open archive server: https://auf.hal.science/hal-01133764
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    References listed on IDEAS

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