The impact of economic policy uncertainty and inflation risk on corporate cash holdings
研究了2011至2021年间美国经济政策不确定性和通胀风险如何共同影响企业现金持有，发现两者均促使企业增持现金，但政策不确定性与现金持有负相关，且不同行业和总统任期下影响不同。
Abstract This paper analyses the joint effects of Economic Policy Uncertainty (EPU) and inflation risk on the Corporate Cash Holdings (CCH) of US firms from 2011 to 2021. The baseline results suggest that EPU and inflation risk positively impact CCH. Moreover, we find the same results between inflation risk and CCH. However, EPU and CCH are negatively associated. Additionally, construction (finance) firms hold higher (lower) cash at the time of EPU and inflationary risk. We also find that firms hold higher (lower) cash during Democrat (Republican) presidential terms. The two-step system Generalized Method of Moments approach used to control the potential endogeneity issues indicates the same results and supports the baseline findings.