【6月15日】【会计学院学术论坛】Political uncertainty and cash holdings- Evidence from China发布日期：2019-09-12 21:12:13
讲座主题：Political uncertainty and cash holdings: Evidence from China
摘要：We examine the relation between political uncertainty and cash holdings for firms in China. We document that, during the first year of a new city government official’s appointment, a firm, on average, holds less cash, which is consistent with the grabbing hand hypothesis of political uncertainty. Our results are robust to alternative measures of cash holdings, sub-samples without firms in four major cities, a matched sample approach, and placebo tests. We also find that if the newly appointed official is from a different (the same) city, firm cash holdings decrease significantly (do not change).Similarly, if the appointment is expected (unexpected), firm cash holdings decrease significantly (do not change).Furthermore, we show that a firm keeps significantly less cash in periods of political uncertainty if it (a) does not have politically connected executives,(b) is smaller,(c) has less debt, or (d) is located in a city with high fiscal deficit, suggesting these factors pose higher political extraction risk to the firm. We report that when a firm has strong twin agency conflicts, it holds less cash during political uncertainty periods than firms with weak agency conflicts, suggesting that firm with bad agency problems are susceptible to political extraction. Lastly, our extended results suggest that the market value of cash holdings is significantly negative during periods of political uncertainty and firms hide their cash by moving it to related firms via related party transactions.
讲座人简介：Kam Chan教授现任职于美国西肯塔基大学（Western Kentucky University），任财务学的Leon Page讲座教授。Chan教授于香港中文大学取得本科和硕士学位，并于1990年取得University of Alabama财务学博士。他的教学兴趣为投资学和国际财务学。研究兴趣包括公司治理、现金政策、共同基金、财务学教育、期刊排名和智力贡献的度量等领域。他在国际知名的财务学和其他商学期刊发表了150余篇论文，包括Accounting and Business Research（ABR）、 Accounting and Finance（AF）、Accounting Organizations and Society（AOS）、European Accounting Review（EAR）、European Financial Management（EFM）, Financial Management（FM）、Journal of Banking and Finance（JBF）、Journal of Business Ethics（JBE）、Journal of Corporate Finance（JCF）、Journal of Empirical Finance（JEF）、Journal of Futures Markets（JFM）, Journal of International Business Studies（JIBS）、Journal of Portfolio Management（JPM）、Journal of Real Estate Research（JRER）、Real Estate Economics（REE）等。