World Class Faculty & Research / September 12, 2010

Stockpiling Cash

A recent Wall Street Journal article reported that U.S. companies have been stockpiling cash and cash equivalents. According to the Federal Reserve, cash balances at nonfinancial companies are at the highest level ($1.84 trillion) since 1952. On a different measure, Cash represents 7% of all assets, the highest level since 1963. What’s causing companies to stockpile and how will this effect the economy?

In this edition of Smith Business Close-Up with the University of Maryland’s Robert H. Smith School of Business, Progyan Basu, Tyser Teaching Fellow of accounting and information assurance, discusses how why businesses are stockpiling cash.

Dr. Basu has more than 20 years of experience teaching accounting at undergraduate and graduate levels. His research interests include financial accounting and accounting education. He teaches accounting to MBAs and undergraduates, and he also serves as a cohort director for Smith’s Executive MBA Program, as well as a faculty champion for the Accounting Teaching Scholars program.

Smith Business Close-Up is co-produced by the Robert H. Smith School of Business and Maryland Public Television. The television segment focuses on the latest thinking in business management, and features in-depth interviews with Smith School faculty and other members of the school’s community of business leaders.

Media Contact

Greg Muraski
Media Relations Manager
301-405-5283  
301-892-0973 Mobile
gmuraski@umd.edu 

About the University of Maryland's Robert H. Smith School of Business

The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and flex MBA, executive MBA, online MBA, business master’s, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.

Back to Top