全球智库信息集成服务系统(G2TT): DP14199 All You Need is Cash: Corporate Cash Holdings and Investment after the Financial Crisis

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP14199
	DP14199 All You Need is Cash: Corporate Cash Holdings and Investment after the Financial Crisis
	Andreas Joseph; Christiane Kneer; Neeltje van Horen
发表日期	2022-03-16
出版年	2022
语种	英语
摘要	This paper studies how cash holdings at the onset of the global financial crisis afffected the investment behavior of SMEs after the shock. We use balance sheet data for a large sample of UK SMEs and introduce a novel identification strategy exploiting the volatility of cash holdings to reduce endogeneity concerns. We find that cash holdings are a key determinant of investment by SMEs not only during the crisis but also during the recovery period. Cash-rich SMEs could maintain their capital stock during the global financial crisis, while cash-poor rivals reduced theirs. This gave cash-rich SMEs an advantage when the economy rebounded, resulting in a persistent investment gap which grew over the seven years following the shock. The amplification effect was particularly pronounced for younger and smaller firms and in industries where credit conditions tightened more. Competition dynamics and borrowing constraints seem to drive this amplification effect.
主题	Financial Economics ; Monetary Economics and Fluctuations
关键词	Firm investment Cash holdings Credit constraints Financial crisis
URL	https://cepr.org/publications/dp14199-0
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/546088
推荐引用方式 GB/T 7714	Andreas Joseph,Christiane Kneer,Neeltje van Horen. DP14199 All You Need is Cash: Corporate Cash Holdings and Investment after the Financial Crisis. 2022.