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Financing R&D Spending: The Role of Corporate Cash Holdings

Author

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  • Masataka Mori
  • Juan M. Sanchez

Abstract

Firms with higher R&D spending tend to hold more cash. In recent years, as AI investment has increased, R&D intensity has gone up while cash ratios have declined.

Suggested Citation

  • Masataka Mori & Juan M. Sanchez, 2026. "Financing R&D Spending: The Role of Corporate Cash Holdings," On the Economy 102892, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:l00001:102892
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    File URL: https://www.stlouisfed.org/on-the-economy/2026/mar/financing-rd-spending-role-corporate-cash-holdings
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