Bonding with risk: Corporate investment and savings in risky financial assets

• 成果类型: Article
• 署名作者: Huang, Teng; Sacchetto, Stefano
• 署名单位: NEOMA Business School; Universidade Nova de Lisboa
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2026.104283
• 发表日期: 2026-07
• 页码: 104283
• 关键词: CASH HOLDINGS; Bond securities; State-contingent liquidity; Interest risk; Corporate investment; US FIRMS HOLD; Cash holdings; GMM estimation; PRODUCTIVITY; determinants; management; DYNAMICS; taxes

摘要

We study the rationale behind firms' investment in risky financial assets by formulating and estimating a dynamic model in which firms allocate their precautionary savings to both safe and risky securities. In equilibrium, risky financial asset holdings are positively related to the sensitivity of a firm's financing deficit to the risky asset returns-the financing deficit beta. Using a comprehensive sample of US corporate financial asset holdings, we find evidence of a positive correlation between risky financial asset holdings and financing deficit betas that capture firms' incentives to hedge interest-rate risk. Precautionary motives are stronger in small, high-volatility, and R&D-intensive firms.