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

页码：311 / 337

页数：27

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