Explain the three theories of cash holdings including: trade-off theory,pecking order theory and agency conflict theory.
1a)Explain the three theories of cash holdings including: trade-off theory,pecking order theory and agency conflict theory. b)Based on the empirical evidence in Faulkender and Wang and Dittmar and Mart-Smith, discuss the relationship between the value of cash holdings and corporate characteristics, including corporate leverage, cash reserves, financial constraints and the quality of corporate governance.