Firms in the US economy are closely interconnected in a production network and are subject to shocks that propagate within the network. This study examines the liquidity management of firms centrally connected in the network. I show that, while central firms are more exposed to aggregate swings, they maintain higher cash holdings to protect themselves and connected firms against such exposure. Central firms’ cash holding motives are alleviated by firm diversification but are aggravated by industry competition. Such motives are not explained by alternative determinants of cash policies. My findings suggest that systematically important firms proactively dampen the propagation of shocks in the production network.

中文翻译：

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管理生产网络中的流动性：中央企业的作用

美国经济中的企业在生产网络中紧密相连，并且受到网络内部传播的冲击的影响。本研究考察了网络中集中连接的公司的流动性管理。我的研究表明，尽管中央公司更容易受到总体波动的影响，但它们仍持有较高的现金，以保护自己和关联公司免受此类风险的影响。中央企业的现金持有动机因企业的多元化而减轻，但由于行业竞争而加剧。现金政策的其他决定因素不能解释这种动机。我的发现表明，具有系统重要性的公司可以主动抑制生产网络中冲击的传播。