Journal article
Are firms as liquid as they appear in annual reports?
Abstract
Abstract Fiscal‐year‐end cash holdings are an important indicator in external stakeholders' assessment of a firm's liquidity and credit risk. Do fiscal‐year‐end cash holdings reflect a firm's intra‐year liquidity conditions? We observe that firms report significantly higher cash holdings in the fourth fiscal quarter, followed by a subsequent reversal. This pattern is pervasive across industries, persistent over time, and not explained by …
Authors
Khokhar A; Qiu J; Rahaman MM
Journal
Contemporary Accounting Research, Vol. 41, No. 2, pp. 944–975
Publisher
Wiley
Publication Date
June 2024
DOI
10.1111/1911-3846.12929
ISSN
0823-9150