Working Papers

"When does cash matter?" with Paul Ehling

We examine the association between a firm’s cash holdings and its performance.  Using a large sample of private companies, we find that the importance of cash for a firm’s performance varies substantially with its size and the conditions it faces.  When there are negative shocks to industry or macroeconomic conditions, there is a positive association between cash holdings and performance for small firms.  This association is much weaker for large firms.  There is no association between cash holdings and performance for other types of conditions, regardless of the firm’s size.  Consistent with the benefits from cash holdings depending on a firm’s ability – and willingness – to use external financing, small firms borrow less than large firms during negative shocks. Download the paper (in Acrobat PDF)

Published Papers

Academic Publications

"When do banks listen to their analysts? Evidence from mergers and acquisitions" Review of Financial Studies, February 2011, with Michelle Lowry.

"Financing under extreme risk: Contract terms and returns to private investments in public equity," Review of Financial Studies, July 2010, with Susan Chaplinsky.

"Is there shareholder expropriation in the U.S.? An analysis of publicly-traded subsidiaries," Journal of Financial and Quantitative Analysis, February 2010, with Vlado Atanasov and Audra Boone.

"The influence of product market dynamics on risk management policies,” Journal of Financial Economics, June 2007, with Sandy Klasa and William Maxwell.

"Are firms successful at selective hedging?," Journal of Business, November 2006, with Greg Brown and Pete Crabb.

"An investigation of the gains from specialized equity claims: Tracking stock and minority carve-outs," Financial Management, Fall 2003 with Audra Boone and Wayne Mikkelson.

"Price uncertainty and corporate value," Journal of Corporate Finance, July 2002, with Randy Heron and Erik Lie.

"Financing policy, basis risk, and corporate hedging: Evidence from oil and gas producers," The Journal of Finance, February 2000.

"A survey of evidence on domestic and international stock exchange listings with implications for markets and managers," Pacific Basin Finance Journal, December 1996, with John J. McConnell, Heidi J. Dybevik, and Erik Lie.

Other Publications

"Venture Investments in Public Equity," Oxford Handbook of Venture Capital, Doug Cumming editor, Oxford University Press, forthcoming, with Susan Chaplinsky.

“Why Hedge? Evidence from oil and gas producers," The Journal of Applied Corporate Finance, Winter, 2001.