Politically connected firms and the cash flow sensitivity of cash: International evidence

• Main Author: KUSNADI, Yuanto
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Political connections; Cash flow sensitivity of cash; Precautionary motive of cash holdings; Financial constraints; Country-level institutional infrastructure; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/2051; https://ink.library.smu.edu.sg/context/soa_research/article/3078/viewcontent/CashflowSensitivityCash_Sep2024_sv.pdf
• Institution: Singapore Management University

This paper examines the role of political connections on the cash flow sensitivity of cash using a sample of international firms. The finding reveals that the cash flow sensitivity of cash is lower for politically connected firms than their non-connected counterparts, which is supportive of the prec...