Scholarlink

<p>In this study, we examine the relationship between the central banks’ assessments of the economic outlook and corporate cash holdings. When a central bank has a relatively optimistic view of the economy, we find that firms tend to increase cash holdings through equity and debt issuances. As a result, they increase capital and R&amp;D expenses that lead to better financial outcomes and innovations. Firms with higher competition and sales growth are more sensitive to central bank information, while financial constraints do not drive the results. Investors’ increased preference for cash further strengthens strategic cash holdings. Overall, the results indicate that there are strategic motives for cash holdings; firms tend to raise cash for an innovation race when the assessments of the future economy are bright.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Central Banks’ Assessments of Economic Outlook and Corporate Cash Holdings: Evidence of Strategic Motives

  • 期刊论文

  • 发表日期：

    2026年4月15日

查看全文
  • Quang-Thai Truong,
  • Chih-Yung Lin,
  • Chienlin Lu,
  • Alex YiHou Huang

摘要

In this study, we examine the relationship between the central banks’ assessments of the economic outlook and corporate cash holdings. When a central bank has a relatively optimistic view of the economy, we find that firms tend to increase cash holdings through equity and debt issuances. As a result, they increase capital and R&D expenses that lead to better financial outcomes and innovations. Firms with higher competition and sales growth are more sensitive to central bank information, while financial constraints do not drive the results. Investors’ increased preference for cash further strengthens strategic cash holdings. Overall, the results indicate that there are strategic motives for cash holdings; firms tend to raise cash for an innovation race when the assessments of the future economy are bright.