Federal Reserve Bank of Cleveland
The dark side of liquidity
A look at the disadvantages of a firm's having too much liquidity, explaining that when a company has a great deal of its worth tied up in liquid assets, it has a harder time attracting investors, who must be convinced that the firm's managers will not "take the money and run."
Cite this item
Joseph G. Haubrich & João Cabral dos Santos, "The dark side of liquidity"
, Federal Reserve Bank of Cleveland, Economic Commentary, issue Sep, 1997.
Keywords: Liquidity (Economics) ; Corporations - Finance
This item with handle RePEc:fip:fedcec:y:1997:i:sep15
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