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What factors cause cash ratios to increase in Western European and Nordic countries?
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School of Economics |
Master's thesis
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en
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80
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Many papers have contribute to the understanding of cash holdings for firms in the U.S.. The possible reasons are also suggested according to different authors. However, cash holdings in Europe have not been investigated even though ample firm data exist in Europe. My study attributes to the analysis of cash ratios in Europe. From my research, I notice that cash ratios increases significantly for firms in western European and Nordic countries from 1980 to 2009. This paper analyzes potential reasons that lead to the increase of cash holdings.