“Noon Sunshine-Young Scholars Seminar” is a regular academic exchange platform held by School of Finance. It aims to offer valuable occasions of communications among scholars in our college, between teachers and students, the domestic and the oversea. In this semester, we keep our original intention, set off for a new voyage. We will devote ourselves to fostering the academic atmosphere in the college, and promoting the academic level for both teachers and students.

The sixth session of “Noon Sunshine-Young Scholars Seminar” for the Spring Semester in 2022 is arranged as follows:

Lecture topic

Managerial Myopia, Cash Flow Volatility and Cash

Keynote Speaker: Zhang Xiao

Associate professor in the School of Finance, Nankai University, Ph.D. from the University of Glasgow. His research interests are in corporate finance. His research results have been published in journals such as Journal of Corporate Finance and European Journal of Finance.

Commentator: Zhang Xiaolin

Assistant professor in the School of Finance, Nankai University, graduated from Boston College with a Ph.D. degree. Her research concentrates on the interaction between product markets and capital markets.

Date

Thursday, April 28th, 2022

Time

12:00-13:00

Tencent Meeting Code

998-552-719

Abstract

The paper investigates a novel cash flow volatility and its impact on cash holdings. We find that monitors pay more attention to the year-end performance which leads to managerial myopia: on average, around 70% of cash flows received at the year-end. We show that the timing pattern explains around 10% of cash in the U.S. We quantitatively explain these facts using a production-based model. Manager with career concerns have incentives to satisfy monitors and increases performance by the year end. Overall, the managerial myopia is informative about the timing pattern and cash holding decisions.