Economics and Finance Faculty Publications and Presentations
Document Type
Article
Publication Date
2-2019
Abstract
This research examines the relation between government economic policy uncertainty and firm cash holdings. We find evidence that policy uncertainty is positively related to firm cash holdings due to firms’ precautionary motives and, to a lesser extent, investment delays. The relation between policy uncertainty and cash holdings is more pronounced for firms dependent on government spending and extends beyond business cyclicality. Further analysis indicates that the effects of policy uncertainty on corporate cash holdings are distinct from those of political, market, or other macroeconomic uncertainty.
Recommended Citation
Phan, H.V., Nguyen, N.H., Nguyen, H.T. and Hegde, S., 2019. Policy uncertainty and firm cash holdings. Journal of Business Research, 95, pp.71-82. https://doi.org/10.1016/j.jbusres.2018.10.001.
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
First Page
71
Last Page
82
Publication Title
Journal of Business Research
DOI
10.1016/j.jbusres.2018.10.001
Comments
Original published version available at https://doi.org/10.1016/j.jbusres.2018.10.001