Ortiz, MarceloUniversitat Pompeu Fabra. Departament d'Economia i Empresa2020-05-252020-05-252020-01-01http://hdl.handle.net/10230/44755This paper proposes that private firms facing stronger financial constraints benefit from greater transparency in the financial disclosure environment since it facilitates the estimation of future liquidity needs. I test this idea using a sample of private firms from 12 European countries with similar disclosure regulations for public and private firms. Consistently, I find that private firms hold less cash when they operate in industries with a higher fraction of peers disclosing extended financial reports. Further, I find that the decrease in cash holding is more pronounced in industries with higher cash-deficit risk and for younger firms. These findings are mainly explained by the disclosures of other private peers, which provide a means for learning from firms with similar liquidity constraints.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsFinancial disclosure environment and the cash policy of private firms<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">disclosure regulation</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">cash policy</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">private firms.</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Finance and Accounting</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>