| dc.description.abstract | This thesis investigates the determinants of Swedish corporate cash holdings. We document
a positive correlation between Swedish corporate cash holdings and the key policy rate
for the period 1994-2019, in contrast to existing theory. On shorter five-year periods,
the relationship between interest rate and cash holdings varies and is both positive and
negatively correlated. The most pronounced impact from the interest rate on cash holdings
is observable in periods when the interest rates are negative.
Additionally, we find that the development in certain firm characteristics drives the increase
in Swedish corporate cash holdings during our sample period. The main drivers behind
this increase are size, leverage, and cash flow volatility. This further indicates that the
precautionary motive and the transaction motive for holding cash have become more and
less prominent during the period. Conclusively, these insights provide corporate managers
and government officials with information and additional insights with implications for
monetary policy. | en_US |
