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> http://twurl.nl/j1gjbc

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s