Cash Holdings, Diversification, and The Product Market


The amount of cash holdings and number of multi-segment firms has increased steadily over the last 30 years. Both can mitigate firm risk and help firms expand their investment opportunity. In this study, I test the joint impact of cash holdings and diversification in the product market. I find that cash holdings act as complements in the product market, but diversification adds additional protection against predatory risk from its competitors.

Sean Brunson
PhD Candidate Finance

My research interests include real estate, home prices, and mortgages.