The study found that there is a U-shaped relationship between cash flows and cash holdings in companies. This means that some companies with very low or very high cash flows tend to keep more cash on hand compared to those with moderate cash flows. Companies with low cash flows tend to accumulate cash to deal with unpredictable cash flow, while those with high cash flows keep cash reserves to manage volatility. Younger, smaller, and less liquid companies with low asset tangibility tend to have a negative cash-cash flow relationship, meaning they accumulate cash from equity issuances due to difficulty in getting external financing. On the other hand, companies with positive cash-cash flow sensitivity keep cash reserves to reduce cash flow volatility.