Solving the Mystery of Corporate Cash Hoarding

By John Carney – Dividends are rising at many of our largest public companies, but cash accumulation is rising even faster. So why are companies “hoarding” their cash?

The financial crisis revealed that the availability of financing for future business needs is far less certain than previously imagined.

The freezing up of short-term credit markets that many corporations use to finance things like payroll and inventories greatly increased the value of holding cash. In the next credit crunch, having cash on hand could make the difference between survival and failure. more>


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