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This study investigates the linkages between firm age and cash holdings. We document that younger firms keep more cash and that they have higher propensity to save cash from their cash flows in comparison to older firms. These linkages are robust to controlling for firm size, and other control variables known to affect cash policy. Our finding is consistent with the idea that younger firms face more financing frictions than older firms and hence have stronger need to save cash.

Firm Age, Young Firms, Old Firms, Cash Policy, Corporate Liquidity, Corporate Policies, Corporate Finance