Tariffs, corporate cash holdings, and innovation
研究了贸易自由化如何影响G7国家大企业的现金持有与创新决策，发现当贸易伙伴降低进口关税时，企业会增加现金持有，并在关税削减后增加研发支出和专利申请。
We study how trade liberalization affects financial and innovation decisions of large firms across major G7 countries. We document how firms increase their cash holdings when their country’s trading partners lower their import tariffs, while we find no effect of a decrease in the country’s own import tariffs. Specifically, we find that the increase in cash holdings occurs before tariff cuts by trading partners and is associated with higher R&D spending and patent filing after the cuts. Our results are consistent with the predictions of a model in which higher expected returns to innovation from enhanced export market access lead to higher cash buffers.