Unified government and the value of cash holdings

被引：3

作者：

Im, Hyun Joong ^{[1
]}

Kim, Jiyeon ^{[1
]}

Ryu, Dean ^{[2
]}

机构：

[1] Univ Seoul, Coll Business Adm, Seoul, South Korea

[2] Univ Oxford, Said Business Sch, Oxford, England

来源：

FINANCE RESEARCH LETTERS | 2023年 / 58卷

关键词：

Unified; Divided government; Value of cash holdings; holdings Investment opportunities; Under-investment; CORPORATE GOVERNANCE; DIVIDED GOVERNMENT; POLITICAL CYCLES; INVESTMENT; CONSTRAINTS; UNCERTAINTY; POLICY;

D O I：

10.1016/j.frl.2023.104546

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study examines the impact of a government regime on cash holdings' valuation, finding that the marginal value of an extra dollar of cash is 24-26 cents greater when the government is unified. As the degree of political conflicts and economic uncertainty are lower in this regime, greater cash reserves allow firms to alleviate under-investment problems and capture government-driven investment opportunities, leading to an increased marginal value of cash holdings. Taken together, our findings highlight that cash value hinges on the political regime in which firms operate.

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页数：9

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