Does firm-level political risk affect cash holdings?

被引：15
|
作者：
Bin Hasan, Shehub [1 ]
Alam, Md Samsul [2 ]
Paramati, Sudharshan Reddy [3 ]
Islam, Md Shahidul [4 ]
机构：
[1] Univ Warwick, Warwick Business Sch, Coventry, W Midlands, England
[2] De Montfort Univ, Leicester Castle Business Sch, Leicester, Leics, England
[3] Univ Dundee, Sch Business, Dundee, Scotland
[4] Univ Suffolk, Suffolk Business Sch, Ipswich, Suffolk, England
来源：
REVIEW OF QUANTITATIVE FINANCE AND ACCOUNTING | 2022年 / 59卷 / 01期
关键词：
Firm-level political risk; Cash holdings; Financial constraints; Business cycle; ECONOMIC-POLICY UNCERTAINTY; FINANCIAL CONSTRAINTS; MACROECONOMIC UNCERTAINTY; CORPORATE GOVERNANCE; INVESTMENT; DETERMINANTS; INFORMATION; LIQUIDITY; LABOR;
D O I：
10.1007/s11156-022-01049-9
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We investigate whether firm-level political risk affects corporate cash holdings. Taking a sample of 5424 US firms with 129,750 firm-quarter observations from 2002Q1 to 2021Q3, we find that cash holdings is higher for firms with greater exposure to firm-level political risk. The positive relationship between firm political risk and cash holdings is consistent for financial constraint and non-constraint firms, high and low growth firms, pro-cyclical and counter-cyclical and competitive industries. Further, our findings are consistent to alternative measures of firm-level political risk and cash holdings. In addition, our findings remain robust with different endogeneity tests: a natural experiment, an instrumental variable approach, and a propensity score matching. Overall, we present novel evidence on the determinants of corporate cash holdings.
引用
收藏
页码：311 / 337
页数：27
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