Corporate finance-Explain the three theories of cash holdings including: trade-off theory,pecking order theory and agency conflict theory.

Corporate finance. Explain the three theories of cash holdings including: trade-off theory,pecking order theory and agency conflict theory. Based on the empirical evidence in Faulkender and Wang (2006) and Dittmar and Mahrt-Smith (2007), discuss the relationship between the value of cash holdings and corporate characteristics, including corporate leverage, cash reserves, financial constraints and the quality … Read more