Cash Holdings and Debt Levels Before and After 2008 Financial Crisis

This thesis investigates how cash holdings of large and small firms in the U.S. change before and after the 2008 financial crisis. We also try to capture the determinants that cause the changes of cash holdings. Our conclusions show that debts of large and small firms are rising before and after the 2008 financial crisis and that cash holdings are better explained by debts comparatively than D/A because they are different conceptions in mathematic expressions