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Excess Cash Best In Class? Which Firms Managed Better Stock Returns During The Financial Crisis?

Cavdarovski, Jove LU and Ragnvid, Martin (2014) BUSN89 20141
Department of Business Administration
Abstract (Swedish)
During the normal periods in absence of crisis, diversified firms without any excess cash as a whole, outperformed focused firms holding excess cash. During the Financial Crisis from mid 2007 to early 2009 on the other hand, focused firms holding excess cash outperformed less diversified firms and diversified firms as a group, where diversified firms with more than 2 different SIC codes performed equally good compared to focused firms with excess cash. Main reasons include lower positive skewness and higher leverage in diversified firms, while higher capital expenditures in focused firms are deemed as factor for focused firms with excess cash.
Please use this url to cite or link to this publication:
author
Cavdarovski, Jove LU and Ragnvid, Martin
supervisor
organization
course
BUSN89 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
Excess Cash, Diversification, Abnormal Returns, SIC-codes, Financial Crisis
language
English
id
4645855
date added to LUP
2014-09-15 11:47:05
date last changed
2014-09-15 11:47:05
@misc{4645855,
  abstract     = {{During the normal periods in absence of crisis, diversified firms without any excess cash as a whole, outperformed focused firms holding excess cash. During the Financial Crisis from mid 2007 to early 2009 on the other hand, focused firms holding excess cash outperformed less diversified firms and diversified firms as a group, where diversified firms with more than 2 different SIC codes performed equally good compared to focused firms with excess cash. Main reasons include lower positive skewness and higher leverage in diversified firms, while higher capital expenditures in focused firms are deemed as factor for focused firms with excess cash.}},
  author       = {{Cavdarovski, Jove and Ragnvid, Martin}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Excess Cash Best In Class? Which Firms Managed Better Stock Returns During The Financial Crisis?}},
  year         = {{2014}},
}