Non-linear target adjustment in corporate liquidity management: an endogenous thresholds approach

Allard Bruinshoofd (1) , Clemens J.M. Kool (2)

1 Economics and Research Division
2 U.S.E. - Utrecht School of Economics

We provide new empirical evidence on non-linear liquidity management in Dutch firms. Our results reveal that liquidity adjustment from below the target is significantly faster than from above. We find no evidence for bands of inaction around the target.

Mots clés: Social Sciences & Humanities

Allard Bruinshoofd, Clemens J.M. Kool. Non-linear target adjustment in corporate liquidity management: an endogenous thresholds approach. Applied Economics, 2009, 41 (17), pp.2125-2131. ⟨10.1080/00036840701222587⟩. ⟨hal-00582123⟩