Institutional development, political uncertainty, and corporate cash holdings: Evidence from China

被引：7
作者：
Zhang, Xiang [1 ]
Zhan, Feng [2 ]
Liu, Bin [3 ]
机构：
[1] Chongqing Univ Technol, Accounting Sch, Chongqing, Peoples R China
[2] Univ Western Ontario, DAN Management & Org Studies, London, ON, Canada
[3] Chongqing Technol & Business Univ, Res Ctr Econ Upper Reaches Yangtze River, Chongqing, Peoples R China
来源：
FINANCE RESEARCH LETTERS | 2023年 / 53卷
关键词：
Cash holdings; Political uncertainty; Institutional development; ECONOMIC-GROWTH; RISK; GOVERNANCE; FINANCE; FIRMS; LAW;
D O I：
10.1016/j.frl.2022.103623
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study examines the relationship between institutional development, political uncertainty, and corporate cash holding decisions. We show that the impact of institutional development on firms' cash holding decisions is non-linear. Our empirical results also indicate that firms tend to hold more cash at the early stage of economic development. With the legal and economic environment improvement, firms' cash holding decreases. Furthermore, our study finds that political uncertainty has a moderating effect on the relationship between institutional development and the firm's cash holdings. This effect is stronger for non-state-owned enterprises than that for stateowned enterprises.
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页数：12
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