Institutional development, political uncertainty, and corporate cash holdings: Evidence from China

被引：7
|
作者：
Zhang, Xiang [1 ]
Zhan, Feng [2 ]
Liu, Bin [3 ]
机构：
[1] Chongqing Univ Technol, Accounting Sch, Chongqing, Peoples R China
[2] Univ Western Ontario, DAN Management & Org Studies, London, ON, Canada
[3] Chongqing Technol & Business Univ, Res Ctr Econ Upper Reaches Yangtze River, Chongqing, Peoples R China
来源：
FINANCE RESEARCH LETTERS | 2023年 / 53卷
关键词：
Cash holdings; Political uncertainty; Institutional development; ECONOMIC-GROWTH; RISK; GOVERNANCE; FINANCE; FIRMS; LAW;
D O I：
10.1016/j.frl.2022.103623
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study examines the relationship between institutional development, political uncertainty, and corporate cash holding decisions. We show that the impact of institutional development on firms' cash holding decisions is non-linear. Our empirical results also indicate that firms tend to hold more cash at the early stage of economic development. With the legal and economic environment improvement, firms' cash holding decreases. Furthermore, our study finds that political uncertainty has a moderating effect on the relationship between institutional development and the firm's cash holdings. This effect is stronger for non-state-owned enterprises than that for stateowned enterprises.
引用
收藏
页数：12
相关论文
共 50 条
  • [41] Examining the Impact of Idiosyncratic Risk on Corporate Cash Holdings: Evidence from China
    Xian, Xiaohong
    Zhang, Xiang
    Zhang, Zongyi
    Sindakis, Stavros
    Aggarwal, Sakshi
    JOURNAL OF THE KNOWLEDGE ECONOMY, 2024, 15 (02) : 5151 - 5173
  • [42] Corporate Governance, Ultimate Owner, and Target Cash Holdings: Evidence From China
    Jebran, Khalil
    Chen, Shihua
    Tauni, Muhammad Zubair
    Ahmad, Hassan
    SAGE OPEN, 2019, 9 (04):
  • [43] The impact of systematic uncertainty on corporate cash holdings
    Miloud, Tarek
    EUROPEAN JOURNAL OF INTERNATIONAL MANAGEMENT, 2022, 18 (04) : 546 - 571
  • [44] Economic policy uncertainty and corporate inventory holdings: evidence from China
    Zeng, Jianyu
    Zhong, Teng
    He, Fan
    ACCOUNTING AND FINANCE, 2020, 60 (02): : 1727 - 1757
  • [45] Political Favoritism and Value of Corporate Cash Holdings
    Panta, Humnath
    Adhikari, Ramesh
    Narayanasamy, Arun
    JOURNAL OF CORPORATE ACCOUNTING AND FINANCE, 2024,
  • [46] External Financing Constraints and Marginal Value of Corporate Cash Holdings: Evidence from China
    Kuang Xue-wen
    Peng Di-yun
    PROCEEDINGS OF 2009 CONFERENCE ON SYSTEMS SCIENCE, MANAGEMENT SCIENCE & SYSTEM DYNAMICS, VOL 3, 2009, : 145 - 150
  • [47] Does internal information quality impact corporate cash holdings? Evidence from China
    Xiong, Feng
    Zheng, Yaping
    An, Zhe
    Xu, Si
    ACCOUNTING AND FINANCE, 2021, 61 : 2151 - 2171
  • [48] Judicial reform and corporate cash holdings: Evidence from the establishment of circuit courts in China☆
    Wang, Qing Sophie
    Chen, Lihan
    Lai, Shaojie
    Anderson, Hamish D.
    JOURNAL OF BEHAVIORAL AND EXPERIMENTAL FINANCE, 2024, 43
  • [49] Anti-corruption, government intervention, and corporate cash holdings: Evidence from China
    Xie, Jun
    Zhang, Yifan
    ECONOMIC SYSTEMS, 2020, 44 (01)
  • [50] Political uncertainty and corporate investment: Evidence from China
    An, Heng
    Chen, Yanyan
    Luo, Danglun
    Zhang, Ting
    JOURNAL OF CORPORATE FINANCE, 2016, 36 : 174 - 189
12345