We study the portfolio decision of a household with limited information-processing capacity in a setting with recursive utility, which has two key features. First, intertemporal substitution and risk aversion are disentangled. Second, the household has a preference for the timing of the...

Nowadays, non-financial corporations invest heavily in financial assets, questioning the traditional boundaries of non-financial firms. We investigate how economic policy uncertainty affects firms' holding of non-currency financial assets and portfolios of such assets in China. We find that...