We empirically examine the effects of economic policy uncertainty (EPU) of which measurement methodology Baker, Bloom & Davis (2019) propose on the investment and cash holding behaviors of Japanese firms. We also examine spillover effects of EPU of the United States on them. We find that...

This study aims to examine the positive relationship between stock liquidity and corporate cash holdings in the context of Japan and offer a novel explanation. Our explanation is based on the “dark side” of stock liquidity, according to which liquidity can aggravate corporate financial...