Is Cash King: A Shareholder’s Perspective ‘a study of excess cash implications on stock returns in periods of boom and bust’
The purpose of this study is to identify if a relationship exists between excess cash and stock returns analysed across periods of boom and bust. Our findings document an overall positive relationship between excess cash holdings and stock returns. In regards to the specific period this paper documents a negative relationship in boom times and a positive relationship in times of downturn. From the
