A 2009 study, "Why Do U.S. Firms Hold So Much More Cash than They Used To" [1], investigated the doubling of U.S. cash-to-asset ratios between 1980 and 2006.
Similar to Ben, they find that "firms hold cash to better cope with adverse shocks when access to capital markets is costly. Consistent with this perspective, OPSW find that firms with riskier cash flows and poor access to external capital hold more cash. The precautionary motive also suggests that firms with better investment opportunities hold more cash because adverse shocks and financial distress are more costly for them."
Tech moves quickly. This means tech firms are more (1) ephemeral and (2) dependent on properly timing bold moves. (1) makes markets, and thus capital availability, more jittery in the face of adverse information. (2) makes firms less tolerant of aforementioned jitteriness. Hence Apple's $150 billion cash balance.
Similar to Ben, they find that "firms hold cash to better cope with adverse shocks when access to capital markets is costly. Consistent with this perspective, OPSW find that firms with riskier cash flows and poor access to external capital hold more cash. The precautionary motive also suggests that firms with better investment opportunities hold more cash because adverse shocks and financial distress are more costly for them."
Tech moves quickly. This means tech firms are more (1) ephemeral and (2) dependent on properly timing bold moves. (1) makes markets, and thus capital availability, more jittery in the face of adverse information. (2) makes firms less tolerant of aforementioned jitteriness. Hence Apple's $150 billion cash balance.
[1] http://118.96.136.31/ejurnal/journal%20of%20finance%202009_v... Bates, Kahle and Stulz (2009)