Finance theory and hospital cash balances.
Clicks: 275
ID: 97009
2013
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Abstract
Competing financial theories have been offered to understand hospitals' cash holding with scant recent evidence. Using data from a national sample of 608 not-for-profit hospitals, we find support for the trade-off theory which posits targeted cash balances. We do not find support for the financial hierarchy theory which posits a preference for use of cash to pay for capital investments. Findings apply to holdings of cash and marketable securities, but not board-designated funds where no model provided meaningful explanatory power.
| Reference Key |
rivenson2013financejournal
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| Authors | Rivenson, Howard L;Smith, Dean G; |
| Journal | journal of health care finance |
| Year | 2013 |
| DOI |
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| URL | URL not found |
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