Impact of Cash Holdings on Firm Value: Role of Election Induced Political Uncertainty

This paper uses presidential elections as the proxy for political uncertainties to investigate impact of election induced on relationship between cash holdings and firm value a sample non-financial firms from U.S. The findings suggest that goes down significantly during years elections. finding, however, is confined only in which both candidates are new headquartered states have always voted Democrat Furthermore, our does not hold gubernatorial Our results robust after including number firm-specific country-specific control variables taking into account potential endogeneity concerns.