Date of Award

8-2018

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

Committee Chair(s)

Tyler Brough

Committee

Tyler Brough

Committee

Jason Smith

Committee

Benjamin Blau

Abstract

Corporate financial policy and the value of cash by Michael Faulkender and Rong Wang (2006) examined the cross sectional variation in the marginal value of corporate cash holdings that arises from differences in the corporate financial policy. The main findings were that the marginal value of cash declines with large cash holdings,higher leverage, and better access to capital market. The goal of this paper is to replicate and extend Faulkender & Wang's (2006) work to test whether their assumptions and results are still valid.

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