In view of the traditional that stock liquidity reduces cash holding level listed companies by alleviating financing constraints and restraining agency costs, this paper starts from company's repurchase motivation finds high may strengthen thus promote company to improve its level. Based on empirical evidence Chinese A-share 2011 2021, it is shown can significantly increase holdings, through re...

We study the effects of firm-level exposure to an epidemic disease on corporate cash holdings amongst U.S firms. Using a text-based measure diseases and difference-in-difference estimation strategy, we document positive relationship between onset holdings. find that, all recent epidemics, COVID-19 has strongest impact that this effect is mostly driven by negative sentiments around pandemic.

We investigate the effect of economic policy uncertainty (EPU) on corporate cash holdings using a large sample international firms. EPU intensifies concerns investors managerial self-dealing and political extraction. Consequently, potential cost (i.e., expropriation) outweighs its benefit precautionary motives), optimal amount decreases. find supportive evidence that firms hold less when is hig...

This appendix is organized as follows. Section A examines our model’s implication for the risk and return on equity, in particular, on how beta changes with the firm’s cash holdings. Section B studies the comparative statics of the stationary cash-capital ratio distributions. Section C calculates the endogenous average financing costs. Section D presents a model that endogenizes the credit line...