Macroeconomic uncertainty and firm cash holdings: the role of ownership

04/05/2026

Macroeconomic uncertainty and firm cash holdings: the role of ownership

Janani Rangan, Sanket Mohapatra

Journal Articles

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During periods of heightened economic uncertainty, firms tend to accumulate more cash due to a precautionary motive. Firms belonging to different ownership groups may vary in their access to sources of finance. Consequently, their response to economic uncertainty could differ. We contribute to the literature by studying the differential impact of economic uncertainty, both global and domestic, on the cash holdings of firms across ownership groups.

IIMA