作者：Kim, Hwanki Brian; Kim, Woojin; Kronlund, Mathias
作者单位：Baylor University; Seoul National University (SNU); Tulane University
摘要：Corporations have accumulated record amounts of cash. We study whether firms' cash retention has been excessive by examining a Korean reform that introduced a new tax on earnings retained as cash. Difference-in-differences tests show that treated firms reduce cash retention and instead increase payouts and investments. Market participants react favorably to the reform, consistent with excessive cash retention. The valuation effects and the alternative uses of the cash are associated with behav...
