New working paper on the importance of cash for firm investment after a financial crisis

In a new working paper: “All you need is cash: Corporate cash holdings and investment after the financial crisis” written jointly with Andi Joseph, Christiane Kneer and Jumana Saleheen  we show that having cash at hand allows firms to continue to invest during the crisis while industry rivals without cash have to divest. This gives cash-rich firms an important competitive edge that not only benefits them during the crisis but that gives them an advantage that lasts way beyond the crisis years. See also our blog on the topic.