03/28/2024
As of late numerous companies are opting to sit on large cash reserves, even when the return rates suggest otherwise. There are several reasons for this trend, including creating a safety net for potential M&A opportunities, tax benefits, and serving as insurance, particularly for smaller firms that have a higher likelihood of experiencing adverse events when they hold less cash. Want to know more? Check out the full article here.
Many companies sit on piles of cash, even when rates of return suggest they shouldn’t. Why? Researchers have pointed to multiple reasons, including flexibility for M&A and tax advantages. But new research suggests it’s also a form of insurance, especially for smaller firms. Their likelihood of e...