Economic policy uncertainty, social capital, and corporate cash holdings

초록

This study examines the moderating effect of social capital on the association between economic policy uncertainty (EPU) and cash holdings. Using a sample of US-listed firms from 1990 to 2018, social capital is found to have a positive moderating effect on the association between EPU and cash holdings. Our finding is robust even if we use alternative measures of cash, EPU, and social capital. Based on these outcomes, we suggest that firms located in a county with a high level of social capital endure high EPU by raising cash easily.

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