Corporate cash holdings through economic policy uncertainty: An Australian study

Luke Heeney, Shanelle Yang, Hasibul Chowdhury and Kelvin Jui Keng Tan

Pacific-Basin Finance Journal, 2023, vol. 79, issue C

Abstract: This paper replicates Duong et al. (2020) and extends their work to the Australian context. We find that economic policy uncertainty (EPU) is positively associated with corporate cash holdings in both the United States and Australia, supporting the findings of the original study. However, corporate cash holdings in Australia do not mitigate the negative effects of EPU on investment in the Australian context. This study builds on the evidence base for economic policy uncertainty's effect on corporate cash holdings and provides a novel study in the Australian context.

Keywords: Cash holding; Economic policy uncertainty; Australian context (search for similar items in EconPapers)
JEL-codes: G18 G31 G32 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:79:y:2023:i:c:s0927538x23000744

DOI: 10.1016/j.pacfin.2023.102008

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