Investor sentiment, limited arbitrage and the cash holding effect

We examine the investor sentiment and limits-to-arbitrage explanations for the positive cross-sectional relation between cash holdings and future stock returns. Consistent with the investor sentiment hypothesis, we find that the cash holding effect is significant when sentiment is low, and it is ins...

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Bibliographic Details
Main Authors: Li, Xiafei, Luo, Di
Format: Article
Published: Oxford University Press 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/37594/