Shock sistematici dei flussi di cassa e politiche aziendali

There is a large number of corporate finance papers that design quantitative models intending to describe the dynamic behavior of firms in response to changes in the market conditions. In particular, they try to find empirical evidence about investment, financing, and risk management policies of enterprises reacting to cash flow shocks. Starting from these papers and, specifically, from their models and findings, my thesis aims to identify the relationship between cash flow shocks and the following two specific managerial decisions: cash holdings and equity issuance. The former is the amount of money that firms decide to hoard every year for precautionary purposes. Indeed, it represents a resource that a company keeps available to spend rather than investing. In particular, low cash holdings take away the freedom of managers to react to market fluctuations. The latter instead represents a particular source of external funding, which can be useful in different ways for operational and investment objectives.