Corporate Cash and Employment

Détails

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Etat: Public
Version: de l'auteur⸱e
Licence: Non spécifiée
ID Serval
serval:BIB_9AFFCA0B13F2
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Corporate Cash and Employment
Périodique
American Economic Journal: Macroeconomics
Auteur⸱e⸱s
Bacchetta P., Benhima K., Poilly C.
ISSN
1945-7707
Statut éditorial
Publié
Date de publication
2019
Peer-reviewed
Oui
Volume
11
Numéro
3
Pages
30-66
Langue
anglais
Résumé
In the aftermath of the U.S. financial crisis, both a sharp drop in employment and a surge in corporate cash have been observed. In this paper, based on U.S. data, we argue that the negative relationship between the corporate cash ratio and employment is systematic, both over time and across firms. We develop a dynamic general equilibrium model where heterogenous firms need cash and external liquid funds in their production process. We analyze the dynamic impact of aggregate shocks and the cross-firm impact of idiosyncratic shocks. We show that external liquidity shocks generate a negative comovement between the cash ratio and employment, as documented in the data.
Web of science
Création de la notice
07/09/2015 12:29
Dernière modification de la notice
21/11/2022 9:09
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