A bright side of financial constraints in cash management
This paper tests whether financial constraints play a disciplinary role in cash dissipation in the presence of agency problems. We hypothesize that when firms have difficulty raising external funds, empire-building managers of cash-rich firms will be less likely to spend cash on negative NPV project...
|Journal Title:||Journal of Corporate Finance Vol. 17; no. 5; pp. 1430 - 1444|
|Author:||Mi (Meg) Luo|