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1. • Cash earnings that are held overseas

     • Trapped cash describes cash earnings that are held overseas, either due to regulatory constraints or tax rates. As a company grows, it may establish subsidiaries in other countries and accumulate cash balances there.
     c2fo.com/resources/finance-and-lending/what-does-trapped-cash-really-mean/

     What Does “Trapped Cash” Really Mean? - C2FO

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   What is 'trapped cash' in this study?

   • In this study, 'trapped cash' refers to cash and cash equivalents generated by foreign earnings and held by foreign subsidiaries due to concerns over repatriation taxes. This definition is consistent with the notion of ‘locked-out’ earnings described in Graham et al. (2010).

   The relation among trapped cash, permanently reinvested earnings, and

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   What is a cash trap?

   • Cash trap refers to a situation in which a company experiences a significant slowdown in its cash flow, leading to restricted liquidity and financial flexibility. This occurs when a substantial portion of a company’s financial resources becomes tied up in non-liquid assets, such as inventory, accounts receivable, or long-term investments.

   Cash Trap: A Comprehensive Exploration of Definition, Impact, and

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   What is the difference between trapped cash and foreign cash?

   • Foreign cash refers to cash held by foreign subsidiaries of U.S. MNCs. Trapped cash is a subset of foreign cash. However, it's important to note that trapped cash is not necessarily cash, and firms have various non-tax reasons for holding cash in foreign subsidiaries. Therefore, while the three terms intersect, they are not synonymous.

   The relation among trapped cash, permanently reinvested earnings, and

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   What is a trapped cash firm?

   • In Eq. (1), the period of measurement is the fiscal year during which a firm is classified as a trapped cash firm, if it repatriated earnings in 2004, 2005, or 2006, or in 2005 if it did not repatriate. Trapped is an indicator variable equal to one for trapped cash firms, and zero otherwise, as defined in Section 2.1.4.

   The relation among trapped cash, permanently reinvested earnings, and

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3. c2fo.com › what-does-trapped-cash-really-meanWhat Does “Trapped Cash” Really Mean? - C2FO

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   Aug 9, 2023 · How and why does trapped cash occur, and how can your enterprise leverage this capital for business growth? What is trapped cash? Trapped cash describes cash earnings that are held overseas, either due to regulatory constraints or tax rates.

4. am.jpmorgan.com › us › enHow can investors avoid falling into the “Cash Trap”?

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   Feb 21, 2024 · Against this backdrop, how can investors gain the confidence to step out of cash and build long-term, diversified portfolios? In Avoiding the Cash Trap, we identify seven principles to help do exactly that. Too much cash has significant opportunity cost

5. amazelaw.com › cash-trapCash Trap: A Comprehensive Exploration of Definition, Impact ...

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   In the realm of finance and accounting, the term “cash trap” holds significant implications for businesses’ liquidity and operational viability. This intricate concept highlights the challenges that arise when a company’s resources are tied up in a way that limits its ability to access cash.

6. rpc.cfainstitute.org › en › researchThe Relation among Trapped Cash, Permanently Reinvested ...

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   Oct 1, 2017 · The authors provide practitioners with a clear definition of trapped cash, permanently reinvested earnings, and foreign cash. Trapped cash comprises cash and cash equivalents generated by foreign operations and held outside the United States because of repatriation tax concerns.

7. www.investopedia.com › terms › lLiquidity Trap: Definition, Causes, and Examples - Investopedia

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   Jun 30, 2024 · A liquidity trap is an adverse economic situation that can occur when consumers and investors hoard cash rather than spend or invest it even when interest rates are low, stymying efforts by...

8. www.pwc.com › m1 › enDon’t let dividend traps trip you up - PwC

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   This scenario is known as a “dividend trap” where a group is net cash and profit generative but cannot lawfully pay a dividend due to accumulated accounting losses. Dividend traps impact a variety of stakeholders.

9. www.sciencedirect.com › science › articleThe relation among trapped cash, permanently reinvested ...

   www.sciencedirect.com › science › article

   Jun 1, 2017 · We define trapped cash as cash and cash equivalents generated by foreign earnings and held by U.S. MNC's foreign subsidiaries due to concerns over repatriation taxes, and explain why trapped cash, permanently reinvested earnings, and foreign cash are not synonymous.