FRIC/Finance Seminar with Sven Klingler, Norwegian Business School

On Friday, September 10, Sven Klingler, Norwegian Business School, will be giving a seminar on the paper: "Cash is not King, Evidence from the Commercial Paper Market".

Fredag, 10 september, 2021 - 11:00 to 12:15

The Department of Finance and FRIC, Center for Financial Frictions, are proud to announce the upcoming seminar with Sven Klingler, Norwegian Business School.

Sven Klingler will present: 

Cash is not King, Evidence from the Commercial Paper Market

Using new transaction-level data for non-financial commercial paper (CP) in the U.S., we show that companies systematically reduce their outstanding short-term debt on quarterly and annual disclosure dates. Constraints on CP lending supply cannot explain this pattern. Instead, cash-rich firms prefer repaying short-term debt over disclosing higher cash holdings, which are often valued below face value. Firms with riskier cash  ows use more CP debt within their reporting periods, highlighting the role of CP debt as precautionary buffer. Moreover, firms facing tighter scrutiny from their investors repay their CP debt more aggressively to mitigate free cash flow concerns.

Solbjerg Plads 3
2000 Frederiksberg
Room: SPs03

Sidst opdateret: Department of Finance // 06/09/2021