01928cas a2200241 a 4500 AALejournalIMF014862 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498322171 1018-5941 BD-DhAAL BD-DhAAL Sher, Galen. Cashing in for Growth : Corporate Cash Holdings as an Opportunity for Investment in Japan / Galen Sher. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Over the last two decades, cash holdings in nonfinancial firms around the world have increased. This phenomenon is particularly concerning in Japan, where the success of Abenomics depends on a transition from stimulus-driven to self-sustaining growth based on private consumption and investment. This paper finds that Japanese nonfinancial firms have accumulated cash at the expense of investment and dividends, hampering this transition. The evidence suggests that cash accumulation is due to financial imperfections combined with rising corporate profitability and uncertainty, while corporate governance plays only a limited role. These firms have cash holdings available for investment of about 5 percent of GDP. Policy options for encouraging the use of these cash holdings include improving firms' access to market-based financing and discouraging CEO duality. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2014/221 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/221/001.2014.issue-221-en.xml IMF e-Library