English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Plus monthly

Global: Zendy Tools annual

Global: Zendy Tools monthly

Global: Zendy Free Plan

This study investigates the relation between economic policy uncertainty (EPU) and cash holdings in China. We find that EPU is positively related to cash holdings. Based on the mediation analysis, our results suggest that capital expenditures represent an important mechanism by which EPU affects cash holdings. However, there are two different theories to explain the mechanism of capital expenditures. Our results are consistent with the precautionary theory, but not with the real options theory. That is, reducing capital expenditures in the presence of higher EPU means weakening investment demands that, in turn, lead to fewer precautionary cash holdings.

Economic policy uncertainty and corporate cash holdings: the mechanism of capital expenditures