Jul 28th, 4:45 PM - 5:45 PM
An examination of cash holding policies in U.S. casino firms
The purpose of this reason is to examine the cash holding policies of U.S. casino firms. More specifically, we attempt to understand why casinos hold the amounts of cash that they do and what the implications of these policies are. Our results support the notion that risky dividend-paying firms hold more cash. However, we find that there is no relationship between risk and cash holdings for all firms. Furthermore, we find that casino firms that use more debt tend to hold more cash. This is the opposite finding in the literature and is worthy of further investigation.