Home > Research > Publications & Outputs > Cash holdings and labor heterogeneity

Electronic data

  • Ghaly, Dang, & Stathopoulos (RFS, forthcoming)

    Rights statement: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in The Review of Financial Studies following peer review. The definitive publisher-authenticated version Mohamed Ghaly, Viet Anh Dang, Konstantinos Stathopoulos; Cash Holdings and Labor Heterogeneity: The Role of Skilled Labor, The Review of Financial Studies, Volume 30, Issue 10, 1 October 2017, Pages 3636–3668, https://doi.org/10.1093/rfs/hhx045 is available online at: https://academic.oup.com/rfs/article/3835431/Cash-Holdings-and-Labor-Heterogeneity-The-Role-of

    Accepted author manuscript, 580 KB, PDF document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

Links

Text available via DOI:

View graph of relations

Cash holdings and labor heterogeneity: the role of skilled labor

Research output: Contribution to journalJournal articlepeer-review

Published

Standard

Cash holdings and labor heterogeneity : the role of skilled labor. / Ghaly, Mohamed ; Anh Dang, Viet; Stathopoulos, Konstantinos .

In: Review of Financial Studies, Vol. 30, No. 10, 10.2017, p. 3636–3668.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Ghaly, M, Anh Dang, V & Stathopoulos, K 2017, 'Cash holdings and labor heterogeneity: the role of skilled labor', Review of Financial Studies, vol. 30, no. 10, pp. 3636–3668. https://doi.org/10.1093/rfs/hhx045

APA

Ghaly, M., Anh Dang, V., & Stathopoulos, K. (2017). Cash holdings and labor heterogeneity: the role of skilled labor. Review of Financial Studies, 30(10), 3636–3668. https://doi.org/10.1093/rfs/hhx045

Vancouver

Ghaly M, Anh Dang V, Stathopoulos K. Cash holdings and labor heterogeneity: the role of skilled labor. Review of Financial Studies. 2017 Oct;30(10):3636–3668. https://doi.org/10.1093/rfs/hhx045

Author

Ghaly, Mohamed ; Anh Dang, Viet ; Stathopoulos, Konstantinos . / Cash holdings and labor heterogeneity : the role of skilled labor. In: Review of Financial Studies. 2017 ; Vol. 30, No. 10. pp. 3636–3668.

Bibtex

@article{c14185537c8a407182f6e2f9f258f5cc,
title = "Cash holdings and labor heterogeneity: the role of skilled labor",
abstract = "Firms differ in their dependence on skilled labor, and face labor adjustment costs that increase with their workers{\textquoteright} skill level. We show that firms with a higher share of skilled workers, and thus less flexibility to adjust their labor demand in response to cash flow shocks, hold more precautionary cash. The effect of labor skills on cash holdings is more pronounced for financially constrained firms and varies with exogenous differences in firing and hiring costs. We address endogeneity concerns by using subsamples of firms with reasonably similar characteristics, propensity score matching, and a quasi-experimental shock to labor markets.",
keywords = "Cash Holdings, Skilled Labor, Labor Adjustment Costs, Hiring Costs, Firing Costs , Labor Heterogeneity",
author = "Mohamed Ghaly and {Anh Dang}, Viet and Konstantinos Stathopoulos",
note = "This is a pre-copy-editing, author-produced PDF of an article accepted for publication in The Review of Financial Studies following peer review. The definitive publisher-authenticated version Mohamed Ghaly, Viet Anh Dang, Konstantinos Stathopoulos; Cash Holdings and Labor Heterogeneity: The Role of Skilled Labor, The Review of Financial Studies, Volume 30, Issue 10, 1 October 2017, Pages 3636–3668, https://doi.org/10.1093/rfs/hhx045 is available online at: https://academic.oup.com/rfs/article/3835431/Cash-Holdings-and-Labor-Heterogeneity-The-Role-of",
year = "2017",
month = oct,
doi = "10.1093/rfs/hhx045",
language = "English",
volume = "30",
pages = "3636–3668",
journal = "Review of Financial Studies",
issn = "0893-9454",
publisher = "Oxford University Press",
number = "10",

}

RIS

TY - JOUR

T1 - Cash holdings and labor heterogeneity

T2 - the role of skilled labor

AU - Ghaly, Mohamed

AU - Anh Dang, Viet

AU - Stathopoulos, Konstantinos

N1 - This is a pre-copy-editing, author-produced PDF of an article accepted for publication in The Review of Financial Studies following peer review. The definitive publisher-authenticated version Mohamed Ghaly, Viet Anh Dang, Konstantinos Stathopoulos; Cash Holdings and Labor Heterogeneity: The Role of Skilled Labor, The Review of Financial Studies, Volume 30, Issue 10, 1 October 2017, Pages 3636–3668, https://doi.org/10.1093/rfs/hhx045 is available online at: https://academic.oup.com/rfs/article/3835431/Cash-Holdings-and-Labor-Heterogeneity-The-Role-of

PY - 2017/10

Y1 - 2017/10

N2 - Firms differ in their dependence on skilled labor, and face labor adjustment costs that increase with their workers’ skill level. We show that firms with a higher share of skilled workers, and thus less flexibility to adjust their labor demand in response to cash flow shocks, hold more precautionary cash. The effect of labor skills on cash holdings is more pronounced for financially constrained firms and varies with exogenous differences in firing and hiring costs. We address endogeneity concerns by using subsamples of firms with reasonably similar characteristics, propensity score matching, and a quasi-experimental shock to labor markets.

AB - Firms differ in their dependence on skilled labor, and face labor adjustment costs that increase with their workers’ skill level. We show that firms with a higher share of skilled workers, and thus less flexibility to adjust their labor demand in response to cash flow shocks, hold more precautionary cash. The effect of labor skills on cash holdings is more pronounced for financially constrained firms and varies with exogenous differences in firing and hiring costs. We address endogeneity concerns by using subsamples of firms with reasonably similar characteristics, propensity score matching, and a quasi-experimental shock to labor markets.

KW - Cash Holdings

KW - Skilled Labor

KW - Labor Adjustment Costs

KW - Hiring Costs

KW - Firing Costs

KW - Labor Heterogeneity

U2 - 10.1093/rfs/hhx045

DO - 10.1093/rfs/hhx045

M3 - Journal article

VL - 30

SP - 3636

EP - 3668

JO - Review of Financial Studies

JF - Review of Financial Studies

SN - 0893-9454

IS - 10

ER -