Wir freuen uns, für Mittwoch, 10. Mai 2017, ein Brown Bag Seminar mit

Toni Whited 

(University of Michigan's Ross School of Business) ankündigen zu können.

Die Veranstaltung findet in D4.0.008, von 13:00 bis 14:00 statt.

Titel: The Interest Sensitivity of Corporate Cash (gemeinsam mit Xiaodan Gao and Na Zhang)

Abstract: We document a hump-shaped relationship between interest rates and corporate cash demand that contradicts conventional wisdom, and we develop a theoretical framework to rationalize this finding. The model features external financing costs that are endogenously determined by interest rates. Interest rates affect corporate cash demand through two channels. First, forgone interest earnings imply an intuitive negative relation. Second, saved external borrowing costs imply a positive relation. The calibrated model quantitatively matches data features and reproduces the hump-shaped cash-interest relationship. This non-monotonic corporate money demand schedule has important implications for monetary policy.