About the C.D. Howe Institute

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada's most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

Get the App

Not Dead Yet: The Changing Role of Cash on Corporate Balance Sheets

Share

-A A +A
January 16, 2013

While critics have raised alarms about the rising cash holdings on corporate balance sheets, there are broader, long-term reasons for the move to cash that go far beyond a knee-jerk reaction by business to current economic uncertainty, according to a new report from the C.D. Howe Institute. In “Not Dead Yet: The Changing Role of Cash on Corporate Balance Sheets,” Finn Poschmann finds corporate cash holdings have increased in waves over the past quarter-century in response to changing economic conditions and business process improvements.

“The critics’ outcry over corporate cash hoards, which has gone so far as to accuse business of malfeasance, is mistaken,” commented Poschmann. “A closer look suggests more to the story.”

 

Author(s):

Finn Poschmann, President & CEO, Atlantic Provinces Economic Council
Finn Poschmann

Connect with Us

© 2014 C.D. Howe Institute. All Rights Reserved.

Connect with Us

© 2014 C.D. Howe Institute. All Rights Reserved.