We document a strong negative relationship between policy uncertainty and corporate cash holdings for non-U.S. firms from 19 countries. Consistent with the twin agency problems framework of Stulz (2005), firms reduce their cash holdings by increasing their dividend payments to minimize the loss...

We find robust empirical evidence that firms in locations with higher exposure to climate change pay significantly higher spreads on their bank loans. To alleviate the concerns related to using firms’ headquarters in determining climate risk exposure, we exploit the economic link between a...