关键词: 公司现金持有量, 融资约束, 对冲需求, 内生联动性, 现金流敏感度

Abstract: This paper investigates the interdependence of corporate cash holdings and investment policies in the framework of financing constraints and hedging needs, and further examines the effects of cash holdings on investment spending. The results show that corporations make cash holding and investment decisions jointly subject to the constraints and hedging needs. We conclude that corporations maintain investment through changing cash holdings which leads to the higher cash flow sensitivity of cash as an indicator of financial constraints. We also find that holding cash as a hedging strategy is predicted by the market, and both cash and investment decisions are highly valued by investors.

Key words: Corporate Cash Holdings, Financial Constraints, Hedging Needs, Interdependence, Cash Flow Sensitivities