Rising Intangible Capital, Shrinking Debt Capacity, and the US Corporate Savings Glut

• 成果类型: Article
• 署名作者: Falato, Antonio; Kadyrzhanova, Dalida; Sim, Jae; Steri, Roberto
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors; University of Luxembourg
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13174
• 发表日期: 2022
• 页码: 2799-2852
• 关键词: Financial constraints; RISK-MANAGEMENT; cross-section; firms hold; cash; INVESTMENT; MARKET; DYNAMICS; valuation; taxes

摘要

This paper explores the connection between rising intangible capital and the secular upward trend in U.S. corporate cash holdings. We calibrate a dynamic model with two productive assets-tangible and intangible capital-in which only tangible capital can serve as collateral. We highlight the following points: (i) a shift toward intangible capital shrinks firms' debt capacity and leads them to hold more cash, (ii) the effect accounts for three-quarters of the observed trend in average cash ratios, and (iii) it also accounts for the upward trend of cash ratios in the cross-section of small and large firms and in the aggregate.