Some companies are said to be holding excessive amounts of cash – and the typical example is Apple. But how can corporate cash-holding be “excessive”? Isn’t cash a sign of the company’s robustness? Too often, our programme participants start from this intuitive assumption.
In fact, holding cash is costly for a company – and unrelated to future success. Firms hold a certain amount of cash for specific operational objectives – once these objectives are fulfilled, holding an additional penny is viewed as “excessive”.
In this webinar, Prof Issam Hallak will show why leading market participants have been calling on Apple to make cash-related financial decisions that would make the company far more appealing to investors. So, the webinar has implications for investors; but more importantly, by connecting financial and operational profitability, Prof Hallak reveals implications for company owners and employees.
Follow this Vlerick Finance Webinar and find out why companies holding cash might not make them rich.
Issam Hallak is Professor of Banking and Finance at Vlerick Business School. He is an expert in Corporate Finance, Bank Risk Management, Lending and Sovereign Debt. Issam has published in academic journals such as Financial Management and the Journal of International Money and Finance. He has also contributed to various books on sovereign debt and international finance. His current research interests include the interaction between bank lending and corporate governance and between relationship lending and corporate cash-holding.