Economic Policy Uncertainty And Corporate Cash Holdings

Duong, Huu Nhan; Nguyen, Justin Hung; Nguyen, My; Rhee, S. Ghon

dc.contributor.author	Duong, Huu Nhan
dc.contributor.author	Nguyen, Justin Hung
dc.contributor.author	Nguyen, My
dc.contributor.author	Rhee, S. Ghon
dc.date.accessioned	2018-01-17T23:28:01Z
dc.date.accessioned	2022-07-11T21:38:22Z
dc.date.available	2018-01-17T23:28:01Z
dc.date.available	2022-07-11T21:38:22Z
dc.date.copyright	2017
dc.date.issued	2017
dc.identifier.uri	https://ir.wgtn.ac.nz/handle/123456789/20310
dc.description.abstract	We find that economic policy uncertainty is positively related to cash holdings. This positive relation is attributed to financial constraints that emerge as a new and dominating channel through which policy uncertainty affects corporate financing policies. Neither a delay in investment nor a reduction of the disciplining effect from M&A activities explains this positive relation. Increasing cash holdings during the period of high policy uncertainty contributes to firm excess returns and mitigates the negative impact of policy uncertainty on investment.	en_NZ
dc.format	pdf	en_NZ
dc.language.iso	en_NZ
dc.publisher	Te Herenga Waka—Victoria University of Wellington	en_NZ
dc.relation.ispartofseries	Working Paper	en_NZ
dc.relation.ispartofseries	No. 112	en_NZ
dc.subject	Policy uncertainty	en_NZ
dc.subject	cash holdings	en_NZ
dc.subject	cash-cash flow sensitivity	en_NZ
dc.subject	financial constraints	en_NZ
dc.subject	investment	en_NZ
dc.title	Economic Policy Uncertainty And Corporate Cash Holdings	en_NZ
dc.type	Text	en_NZ
vuwschema.contributor.unit	Centre for Accounting, Governance and Taxation Research	en_NZ
vuwschema.contributor.unit	School of Accounting and Commercial Law	en_NZ
vuwschema.subject.anzsrcfor	150199 Accounting, Auditing and Accountability not elsewhere classified	en_NZ
vuwschema.type.vuw	Working or Occasional Paper	en_NZ
vuwschema.subject.anzsrcforV2	350199 Accounting, auditing and accountability not elsewhere classified	en_NZ