TY - JOUR
T1 - Cash holdings and cash flows
T2 - Do oil price uncertainty and geopolitical risk matter?
AU - Lee, Chien Chiang
AU - Wang, Chih Wei
AU - Thinh, Bui Tien
AU - Purnama, Muhammad Yusuf Indra
N1 - Publisher Copyright:
© 2023 Economic Society of Australia, Queensland
PY - 2023/9
Y1 - 2023/9
N2 - This research mainly focuses on investigating the role of the interactions between cash flows, oil price uncertainty, and geopolitical risk on corporate cash holdings across 42 countries. We also investigate whether such interactions may differ across firm and country characteristics. The main results show that the interactions between cash flows interacting with oil price uncertainty and geopolitical risk have a positive correlation with corporate cash holdings. Additionally, the nexus between the interactions and corporate cash holdings is more prominent for financially constrained firms, firms located in highly competitive industries, or Asia and Europe. The main policy implication based on our findings is that policymakers should exercise caution and take into account the effect of the uncertainties of oil price movement and geopolitical risk when designing policies related to corporate decision makings.
AB - This research mainly focuses on investigating the role of the interactions between cash flows, oil price uncertainty, and geopolitical risk on corporate cash holdings across 42 countries. We also investigate whether such interactions may differ across firm and country characteristics. The main results show that the interactions between cash flows interacting with oil price uncertainty and geopolitical risk have a positive correlation with corporate cash holdings. Additionally, the nexus between the interactions and corporate cash holdings is more prominent for financially constrained firms, firms located in highly competitive industries, or Asia and Europe. The main policy implication based on our findings is that policymakers should exercise caution and take into account the effect of the uncertainties of oil price movement and geopolitical risk when designing policies related to corporate decision makings.
KW - Cash flows
KW - Corporate cash holdings
KW - Geopolitical risk
KW - Oil price uncertainty
UR - http://www.scopus.com/inward/record.url?scp=85162123613&partnerID=8YFLogxK
U2 - 10.1016/j.eap.2023.06.013
DO - 10.1016/j.eap.2023.06.013
M3 - 期刊論文
AN - SCOPUS:85162123613
SN - 0313-5926
VL - 79
SP - 134
EP - 152
JO - Economic Analysis and Policy
JF - Economic Analysis and Policy
ER -