Journal of Financial Economics Vol. 115 No. 3 2015
Technology spillovers and corporate cash holdings
open access
Abstract
This study examines the effect of technology spillovers on firms׳ cash holdings. It finds that firms facing greater technology spillovers hold higher cash balances. This effect is more pronounced among financially constrained firms and for firms that are likely to benefit more from diffused technology, e.g., those that have newer patents, are more profitable, and face better growth opportunities. The spillover impact remains strong when product market competition and own-firm innovations are accounted for. Overall, our study identifies technology spillovers as an important factor in determining corporate cash policy.
- DOI
- 10.1016/j.jfineco.2014.10.005
- Volume
- 115
- Issue
- 3
- Pages
- 558-573
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref