The Corporate Propensity to Save

• 成果类型: Article
• 署名作者: Riddick, Leigh A.; Whited, Toni M.
• 署名单位: American University; University of Rochester
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2009.01478.x
• 发表日期: 2009
• 页码: 1729-1766
• 关键词: financing constraints; FLOW SENSITIVITY; cash flow; INVESTMENT; equilibrium; tests; debt

摘要

Why do corporations accumulate liquid assets ? We show theoretically that intertemporal trade-offs between interest income taxation and the cost of external finance determine optimal savings. Intriguingly, we find that, controlling for Tobin's q, saving and cash flow are negatively related because firms lower cash reserves to invest after receiving positive cash-flow shocks, and vice versa. Consistent with theory, we estimate negative propensities to save out of cash flow. We also find that income uncertainty affects saving more than do external finance constraints. Therefore, contrary to previous evidence, saving propensities reflect too many forces to be used to measure external finance constraints.