Studies conducted on the relationship between cash holdings and firm value have yielded conflicting results,
with some suggesting a positive relationship and others a negative relationship. One category of the evidence
suggests that there is a negative relationship between cash holdings and firm value. As stated in Lins and
Kalcheva (2004), cash holdings are more negatively related to firm value. Earlier, Papers by Lang et al. (1991),
Blanchard et al. (1994), and Harford (1999) document evidences that cash rich firms often engage in value-