Costly external finance and corporate investment: The role of marketable securities

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-06-09 DOI:10.1016/j.frl.2025.107751

Bektemir Ysmailov

引用次数: 0

Abstract

This paper demonstrates that the precautionary role of cash depends critically on its composition. We show that, following the onset of the global financial crisis, firms with similar total cash reserves experience significantly different investment declines based on the proportion held in marketable securities. Consistent with theory, these results are driven by firms with a greater reliance on external capital. We conduct several tests to address potential endogeneity concerns. We conclude that firms with seemingly adequate precautionary savings in aggregate may still be highly exposed to shocks if their cash holdings are heavily invested in marketable securities.

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昂贵的外部融资和公司投资：有价证券的作用

本文论证了现金的预防作用主要取决于其构成。我们发现，在全球金融危机爆发后，根据持有有价证券的比例，总现金储备相似的公司经历了显著不同的投资下降。与理论一致，这些结果是由更依赖外部资本的公司驱动的。我们进行了几个测试来解决潜在的内生性问题。我们的结论是，如果公司持有的现金大量投资于有价证券，那么看似有足够的预防性储蓄的公司仍然可能高度暴露于冲击之下。

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

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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