Economic policy uncertainty under the conditions of sanctions: Impact on the Russian companies’ cash holdings

Authors

  • Iuliia N. Naidenova International Laboratory of Intangible-Driven Economy, HSE University, Russia
  • Ekaterina V. Shalaeva Master programs school, HSE University, Russia

DOI:

https://doi.org/10.21638/spbu18.2022.402

Abstract

Goal: to analyze the impact of economic policy uncertainty on cash holdings of Russian manufacturing companies and the factors that moderate this impact, taking into account sanctions restrictions.

Methodology: during the study, regression models were evaluated based on data from more than 1 400 Russian manufacturing companies for the period 2014–2020, using the least square method on the transformed data (within estimators).

Findings: it was found that the uncertainty of economic policy leads to an increase in cash holdings, which means a decrease in the level of investment in the development of the company and payments to owners, while this effect is stronger for companies subject to sanctions and companies without state participation, while large companies are less sensitive to policy uncertainty than medium-sized enterprises.

Originality and contribution of the authors: the study for the first time examined the impact of economic policy uncertainty on cash holdings of Russian companies, taking into account the imposed sanctions.

Keywords:

economic uncertainty, policy uncertainty, cash holdings, sanctions, Russian companies

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Published

2023-05-25

How to Cite

Naidenova, I. N., & Shalaeva, E. V. (2023). Economic policy uncertainty under the conditions of sanctions: Impact on the Russian companies’ cash holdings. Russian Management Journal, 20(4), 482–497. https://doi.org/10.21638/spbu18.2022.402

Issue

Vol. 20 No. 4 (2022)

Section

Theoretical and Empirical Studies

License

Articles of the Russian Management Journal are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.