US MNCs foreign cash worth less?

Description

Prof. Wang and his co-authors, Prof. Jarrad Harford of University of Washington and Kuo Zhang of Xiamen University, looked at a sample of US-listed multinational firms that disclose their foreign cash holdings. The findings show that the more cash a firm holds overseas, the lower shareholders value that cash. The researchers also found that firms with large cash holdings overseas tend to under-invest domestically and over-invest abroad.