Resumen de Analyzing the effect of excess cash accumulation on financial decisions
An in-depth study is made of the determination of firm value centering our attention on the problem of excess cash accumulation since this could affect a firm�s investing in negative NPV projects. To do this, we analyze the possible existence of an overinvestment problem explicitly taking into account the effect of cash reserves on the firm. The added value of the current study is precisely the manner in which we deal with this issue because until now the accumulation of cash holding in the firm has not been considered in Spanish studies when it is this fact in particular that directly influences overinvestment problems.
