What will happen with companies’ cash reserves?

Companies’ cash reserves have increased considerably in Japan and the euro zone, but far less so in the United States, even though these cash holdings are costly (the cost of corporate debt remains positive despite the fall in interest rates). It is likely that companies expected interest rates to rise and therefore built up cash reserves (they over-borrowed). But what will companies do if they now believe that interest rates will remain very low for a long time? Increas e the pace of M& As ? Cash is then transferred to the shareholders of the companies bought; Increas e investment? But the demanded return on equity has not decreased, which limits investment; Deleverag e ? The incentive to do so is limited as interest rates will remain very low; Sharply increas e the return to shareholders? This will probably happen. This would be positive for the equity market, but would also be criticised.