TITLE:
Macroeconomic Environment and the Level of Cash Holding: A Literature Review
AUTHORS:
Yingxin Chen
KEYWORDS:
Macroeconomic Environment, The Level of Cash Holding, Trade-Off Theory
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.9 No.1,
January
25,
2021
ABSTRACT: The
level of corporate cash holding is mainly affected by micro factors. In the
past 20 years, the relationship between the level of cash holding and
macroeconomic environmental factors has attracted more and more attention. This
paper first briefly discusses three traditional theories of the level of cash
holding, and proposes the leading role of
trade-off theory and pecking order theory in this topic. Then, it sorts
the relevant literature on macroeconomic fluctuations and macroeconomic
policies.