The impact of economic policy uncertainty and inflation risk on corporate cash holdings

IF 1.9 Q2 BUSINESS, FINANCE

Review of Quantitative Finance and Accounting Pub Date : 2023-11-07 DOI:10.1007/s11156-023-01224-6

Bijoy Chandra Das, Fakhrul Hasan, Soma Rani Sutradhar

引用次数: 0

Abstract

Abstract This paper analyses the joint effects of Economic Policy Uncertainty (EPU) and inflation risk on the Corporate Cash Holdings (CCH) of US firms from 2011 to 2021. The baseline results suggest that EPU and inflation risk positively impact CCH. Moreover, we find the same results between inflation risk and CCH. However, EPU and CCH are negatively associated. Additionally, construction (finance) firms hold higher (lower) cash at the time of EPU and inflationary risk. We also find that firms hold higher (lower) cash during Democrat (Republican) presidential terms. The two-step system Generalized Method of Moments approach used to control the potential endogeneity issues indicates the same results and supports the baseline findings.

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经济政策不确定性和通胀风险对企业现金持有量的影响

摘要本文分析了2011 - 2021年经济政策不确定性(EPU)和通胀风险对美国企业现金持有量的共同影响。基线结果表明，EPU和通货膨胀风险正影响CCH。此外，我们发现通货膨胀风险与CCH之间存在相同的结果。EPU与CCH呈负相关。此外，在EPU和通胀风险时期，建筑(金融)企业持有较高(较低)现金。我们还发现，在民主党(共和党)总统任期内，公司持有更多(更少)现金。用于控制潜在内生性问题的两步系统广义矩法方法表明了相同的结果，并支持基线研究结果。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Quantitative Finance and Accounting BUSINESS, FINANCE-

CiteScore

3.20

自引率

17.60%

发文量

期刊介绍： Review of Quantitative Finance and Accounting deals with research involving the interaction of finance with accounting, economics, and quantitative methods, focused on finance and accounting. The papers published present useful theoretical and methodological results with the support of interesting empirical applications. Purely theoretical and methodological research with the potential for important applications is also published. Besides the traditional high-quality theoretical and empirical research in finance, the journal also publishes papers dealing with interdisciplinary topics.