Cash: Friend or foe?

SMU Assistant Professor of Accounting (Education) Yuanto Kusnadi was featured in an article where he shared his research interests. He studies corporate financial policy, which is how a firm chooses to fund its investments and operations, for example through debt, raising capital or by drawing from cash holdings. His research into cash-rich companies is revealing insights about corporate governance and shareholder value. For instance, his current working paper examines how political connections affect the stock price informativeness of international firms and illustrates with hard data the risks of mixing business and politics.