NEW YORK (Reuters) - The 1,000 largest U.S. corporations outside the finance sector have used low borrowing costs to build up an $853 billion cushion of cash, but they are hoarding the money rather than spending it, according to a new study.
This still-growing cash pile reflects uncertainty over the economy, skepticism about demand and a lack of attractive investment opportunities, according to the study to be published on Friday by REL Consulting, a division of the Hackett Group , and CFO Magazine.
Cash levels at the end of last year were up 6 percent from 2009 and up 75 percent from before the recession, the annual study found.
The research suggests that a long period of low interest rates and other measures to stimulate a still-feeble U.S. economy have let companies fill their coffers for better days ahead without putting the money to work. It predicts companies will further increase reserves for the balance of this year.
It also draws a sharp contrast with small companies, which are less likely to have top-notch credit ratings.
