TY - GEN digital ID - 131591238 TI - Understanding Precautionary Cash at Home and Abroad AU - Faulkender, Michael W. AU - Hankins, Kristine W. AU - Petersen, Mitchell A. PY - 2017 PB - Cambridge, Mass. National Bureau of Economic Research DB - UniCat KW - Zonder onderwerpscode: economie UR - https://www.unicat.be/uniCat?func=search&query=sysid:131591238 AB - Has the need for precautionary savings driven the dramatic increase in U.S. corporate cash? We show that the run-up in cash is concentrated in foreign subsidiaries of multinational corporations. Precautionary motives explain variation in the level of cash held domestically, but not the level or growth of foreign cash. Multinational firms' foreign cash balances are instead explained by low foreign tax rates and the ability to transfer profits within the firm through among related subsidiaries. The firms with the greatest incentive and ability to transfer income to low tax jurisdictions do, causing cash to accumulate in their foreign subsidiaries. ER -