Sustainable development in natural resources industry
Is geopolitical risk a catalyst for corporate excess cash holdings
Bibliographic Data
| ID | 15068356 |
|---|---|
| Authors | Jingwen Li (0000-0003-1475-5335, Chengdu Sport University), Weike Zhang (0000-0002-5176-4460, Sichuan University, corresponding author), Feiyang Zhou (0009-0007-8204-2093, Sichuan University), Wenjing Wu (0000-0002-3614-9515, Sichuan University) |
| Year | 2023 |
| Volume | 36 |
| Issue | 3 |
| Publication date | 2023-12-25 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economic Research-Ekonomska Istraživanja (JOURNAL) |
| Journal identifiers | ISSN: 1331-677X • E-ISSN: 1848-9664 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/1331677x.2023.2183422 |
| OpenAlex | W4376604960 |
| Language | EN |
| References cited | 45 |
With the outbreak of the Russia-Ukraine conflict, combined with the COVID-19 epidemic and the Federal Reserve’s interest rate hike, geopolitical risks have increased sharply, which has brought great pressure on the sustainable development of natural resources industry. This study aims to discuss the impact of geopolitical risk (GPR) on corporate excess cash holdings in China’s natural resources industry. The findings suggest that GRP can encourage enterprises in the natural resources industry to hold more excess cash. The findings still hold with a suite of robustness tests. The study also evidences that the above effect is more significant for state-owned enterprises, enterprises in the mining industry, and large-scale enterprises. Finally, further results show that with the increase of GPR, enterprises with strong risk-taking capacity tend to hold more excess cash, while enterprises registered in higher market-oriented regions are inclined to retain less excess cash. These findings can conduce to a deep understanding of the influence of GPR on corporate excess cash holdings and serve as a reference for policy-makers to adjust policies
Business · Cash · Economics · Geography · Geopolitics · Natural disaster · Natural resource · Natural resource economics · Sustainable development · Market Dynamics and Volatility · Natural Resources and Economic Development · State Capitalism and Financial Governance · Finance
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| Citation velocity | historical |
|---|---|
| Highly cited | No |