Partisan conflict, policy uncertainty and aggregate corporate cash holdings

Cheng, Chak Hung Jack; Chiu, Ching‐Wai; Hankins, William; Stone, Anna‐Leigh

doi:10.1016/j.jmacro.2018.08.010

Cited by 29 publications

(7 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In addition, the result of partisan conflict on tourism-related businesses' financial performance and failure risk is also evident [39]. Intense partisanship reduces travel stock returns and strongly correlates with stock market volatility [40][41][42]. Some other scholars have proved that partisan conflict can predict the stock market, which also shows the close relationship between partisan conflict and tourism demand and the tourism stock market [43][44][45].…”

Section: Impact Of Partisan Conflict On Tourismmentioning

confidence: 97%

See 1 more Smart Citation

Partisan Conflict, National Security Policy Uncertainty and Tourism

Zhang

Fan

et al. 2022

Sustainability

View full text Add to dashboard Cite

This study investigates the spillover effects among partisan conflict, national security policy uncertainty and tourism (i.e., tourist arrivals, exports, and stock) in the U.S. by using the TVP-VAR-based connectedness measures. Specifically, we discuss the association strength, spillover direction and dynamic linkages among the three under this framework. The results show that partisan conflict and national security policy uncertainty are net transmitters of spillovers to tourism, and those effects are more potent for inbound tourism demand than tourism stock performance. Moreover, the magnitude of spillovers among the three is time-varying and increases significantly in times of crisis, especially during the 9/11 attacks, the global financial crisis and the COVID-19 pandemic. Our results have important implications for tourism managers to develop sustainable development strategies to buffer or adapt to the uncertainty impact.

show abstract

Section: Impact Of Partisan Conflict On Tourismmentioning

confidence: 97%

“…These findings support and expand the extant studies, showing that policy uncertainty shocks tend to increase volatility in financial markets. In contrast, partisan conflict shocks tend to reduce volatility in financial markets [41,42].…”

Section: Total Connectednessmentioning

confidence: 98%

Partisan Conflict, National Security Policy Uncertainty and Tourism

Zhang

Fan

et al. 2022

Sustainability

View full text Add to dashboard Cite

show abstract

“…Economic policy uncertainty refers to the perception that economic subjects cannot make accurate judgments on whether, when and how the government will make economic policies in the future. Scholars generally hold that as policy uncertainty increases, enterprises hold more cash (Li & Shi, 2016;Cheng et al, 2018;Phan et al, 2019). Based on the trade-off theory and pecking order theory, the greater uncertainty of economic policies, the more information asymmetry strengthens the preventive motivation of enterprises, and the more difficulty of external financing.…”

Section: Economic Policy Uncertaintymentioning

confidence: 99%

Macroeconomic Environment and the Level of Cash Holding: A Literature Review

Chen¹

2021

JSS

View full text Add to dashboard Cite

The level of corporate cash holding is mainly affected by micro factors. In the past 20 years, the relationship between the level of cash holding and macroeconomic environmental factors has attracted more and more attention. This paper first briefly discusses three traditional theories of the level of cash holding, and proposes the leading role of trade-off theory and pecking order theory in this topic. Then, it sorts the relevant literature on macroeconomic fluctuations and macroeconomic policies.

show abstract

“…Indonesia is a nation that has economic connectivity, both in terms of trade and finance, with countries directly involved in global geopolitical activities (Suwito et al, 2020). According to Pringpong et al, (2023) and Cheng et al (2018), geopolitical risks originating from abroad have a higher impact on countries with open and developing economic systems. Therefore, it is essential to examine whether Indonesia, as a country with an open economic system, experiences spillover effects of geopolitical risks from countries involved in current global geopolitics.…”

Section: Introductionmentioning

confidence: 99%

Geopolitical Risk & Indonesian Stock Market Response

Saputra,

Dwi Putri Marswandi,

Hendri

2023

J. Ecoment Glob.

View full text Add to dashboard Cite

Objective: The aim of this research is to determine empirically the impact of geopolitical risk originating from countries with high geopolitical risk and domestic ones on the Composite Stock Price Index in Indonesia. In addition, this research aims to determine the role of geopolitical actions in strengthening or weakening the relationship between geopolitical risk and the Composite Stock Price Index in Indonesia. Design/Methods/Approach: This research uses geopolitical risk index (GPRH) data from countries with the highest geopolitical risk index in the last 3 years and domestic ones consisting of Ukraine, Russia, America, China and Indonesia. Meanwhile, geopolitical action risk (GPRA) is a risk index measured in aggregate from January 2004-October 2023, so the number of observations in this study reached 238. Findings: The findings in the research show that Ukraine and America have a negative and significant influence, while China and Russia have a positive and significant impact on the composite stock price index in Indonesia. Apart from that, this research also found that the influence of geopolitical risk on the composite stock price index in Indonesia is greater when geopolitical actions such as escalation of war and acts of terror occur. Originality/Value: This research complements several previous studies regarding the impact of geopolitical risk on the Indonesian composite stock price index. Several previous studies have not examined the impact of each country's geopolitical risk on the composite stock price index and how it is moderated by geopolitical action. Practical/Policy implication: The findings in this research prove that countries that have high geopolitical risk have a significant influence on the Composite Stock Price Index in Indonesia. So that investors can use this research as a consideration when investing in the capital market by considering geopolitical risks originating from abroad and domestically.

show abstract

Partisan conflict, policy uncertainty and aggregate corporate cash holdings

Cited by 29 publications

References 31 publications

Partisan Conflict, National Security Policy Uncertainty and Tourism

Partisan Conflict, National Security Policy Uncertainty and Tourism

Macroeconomic Environment and the Level of Cash Holding: A Literature Review

Geopolitical Risk & Indonesian Stock Market Response

Contact Info

Product

Resources

About