{"title":"Impact of Cash Holdings on Firm Value: Role of Election Induced Political Uncertainty","authors":"Omar Farooq, Zakir Pashayev","doi":"10.21315/aamjaf2023.19.1.2","DOIUrl":null,"url":null,"abstract":"This paper uses presidential elections as the proxy for political uncertainties to investigate the impact of election induced political uncertainties on the relationship between cash holdings and firm value for a sample of non-financial firms from the U.S. The findings suggest that the impact of cash holdings on firm value goes down significantly during the years of presidential elections. This finding, however, is confined only to elections in which both presidential candidates are new and for firms headquartered in the states that have always voted for the Democrat candidates in the presidential elections. Furthermore, our findings suggest that the impact of political uncertainties on the relationship between cash holdings and firm value does not hold for gubernatorial elections. Our results are robust after including number of firm-specific and country-specific control variables and after taking into account potential endogeneity concerns.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.7000,"publicationDate":"2023-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian Academy of Management Journal of Accounting and Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.21315/aamjaf2023.19.1.2","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This paper uses presidential elections as the proxy for political uncertainties to investigate the impact of election induced political uncertainties on the relationship between cash holdings and firm value for a sample of non-financial firms from the U.S. The findings suggest that the impact of cash holdings on firm value goes down significantly during the years of presidential elections. This finding, however, is confined only to elections in which both presidential candidates are new and for firms headquartered in the states that have always voted for the Democrat candidates in the presidential elections. Furthermore, our findings suggest that the impact of political uncertainties on the relationship between cash holdings and firm value does not hold for gubernatorial elections. Our results are robust after including number of firm-specific and country-specific control variables and after taking into account potential endogeneity concerns.
期刊介绍：
To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
