Technology spillovers and corporate cash holdings

Jiaping Qiu and Chi Wan

Journal of Financial Economics, 2015, vol. 115, issue 3, 558-573

Abstract: This study examines the effect of technology spillovers on firms׳ cash holdings. It finds that firms facing greater technology spillovers hold higher cash balances. This effect is more pronounced among financially constrained firms and for firms that are likely to benefit more from diffused technology, e.g., those that have newer patents, are more profitable, and face better growth opportunities. The spillover impact remains strong when product market competition and own-firm innovations are accounted for. Overall, our study identifies technology spillovers as an important factor in determining corporate cash policy.

Keywords: Technology spillovers; Product market competition; Cash holdings (search for similar items in EconPapers)
JEL-codes: G32 G35 L14 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (57)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:115:y:2015:i:3:p:558-573

DOI: 10.1016/j.jfineco.2014.10.005

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