scholarly journals The Impact of Macroeconomic Uncertainty on Cash Holdings for Non-Financial Firms

2004 ◽  
Author(s):  
Christopher F. Baum ◽  
Mustafa O. Caglayan ◽  
Neslihan Ozkan ◽  
Oleksandr Talavera
Keyword(s):  
Cash Holdings ◽  
Financial Firms ◽  
Macroeconomic Uncertainty ◽  
The Impact

scholarly journals The impact of macroeconomic uncertainty on non-financial firms' demand for liquidity

2006 ◽  
Vol 15 (4) ◽  
pp. 289-304 ◽  
Author(s):  
Christopher F. Baum ◽  
Mustafa Caglayan ◽  
Neslihan Ozkan ◽  
Oleksandr Talavera
Keyword(s):  
Financial Firms ◽  
Macroeconomic Uncertainty ◽  
The Impact

scholarly journals Ownership Hierarchy and Cash Holding: A Study From Pakistan

2019 ◽  
Vol 10 (6) ◽  
pp. 67
Author(s):  
Muhammad Nabeel Safdar ◽  
Tian Lin ◽  
Papel Tanchangya ◽  
Saba Amin
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Order Theory ◽  
Financial Policy ◽  
Cash Holding ◽  
Financial Reports ◽  
Financial Firms ◽  
Boundaries Of The Firm ◽  
The Impact

This study aims to investigate the impact of the ownership hierarchy on the retention of cash. Ownership structure has dissimilar from each organization as some firms have surplus cash holdings and some firms have fewer cash holdings. This study examines the pattern of shareholding in Pakistan and its consequences on holding of cash. Trade-off theory, peaking-order theory, and agency theory have already hashed out the sensation between cash holding and ownership structure. Fixed Redundant likelihood test, Hausman Test and Panel Data Regression model are used to compute the final results. This study involves 74 non-financial firms to investigate the prime effects. The data have been taken from the biggest database of Karachi Stock Exchange (KSE) 100 index Pakistan and company financial reports from the period 2006 to 2017. Significant findings of this paper are based on two different research questions. First, how the pattern of shareholding has an impact on the decision of cash holding? Second, how the boundaries of the firm affect cash holding? These findings imply that cash holding and ownership structure are a vital element of the firm’s financial policy. This paper concludes that there is a negative and substantial relationship between cash holding and the pattern of shareholdings and the boundaries of the firm have an imperative effect on the holding of cash.

Role of Credit Rating in determining Capital structure: Evidence from Non-Financial sector of Pakistan

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Shoaib Ali ◽  
Imran Yousaf ◽  
Muhammad Naveed
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Least Square ◽  
Annual Data ◽  
Leverage Ratio ◽  
Financial Decisions ◽  
Financial Firms ◽  
High Level ◽  
The Impact ◽  
The Capital Structure

This paper aims to examine the impact of external credit ratings on the financial decisions of the firms in Pakistan.  This study uses the annual data of 70 non-financial firms for the period 2012-2018. It uses ordinary least square (OLS) to estimate the impact of credit rating on capital structure. The results show that rated firm has a high level of leverage. Moreover, Profitability and tanagability are also found to be a significantly negative determinant of the capital structure, whereas, size of the firm has a significant positive relationship with the capital structure of the firm.  Besides, there exists a non-linear relationship between the credit rating and the capital structure. The rated firms have higher leverage as compared to the non-rated firms. The high and low rated firms have a low level of leverage, while mid rated firms have a higher leverage ratio. The finding of the study have practical implications for the manager; they can have easier access to the financial market by just having a credit rating no matter high or low. Policymakers must stress upon the rating agencies to keep improving themselves as their rating severs as the measure to judge the creditworthiness of the firm by both the investors and management as well.

scholarly journals Empirical Investigation of Symmetric and Asymmetric Target Adjustment Models: Capital Structure of Non-Financial Firms in Jordan

2017 ◽  
Vol 9 (3) ◽  
pp. 133 ◽  
Author(s):  
Bashar K. Abu Khalaf
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Interaction Model ◽  
Firm Characteristics ◽  
Leverage Ratio ◽  
Financial Firms ◽  
Large Size ◽  
Amman Stock Exchange ◽  
Target Leverage ◽  
The Impact

The different capital structure theories propose the possible asymmetric behavior of capital structure. Thus, this paper empirically investigates whether non-financial Jordanian firms follow symmetrical or asymmetrical adjustment model. Then, an interaction model with the size and profitability (firm characteristics) investigated the impact of low/high profit and small/large size on the adjustment of leverage towards the target leverage ratio. This paper covered the period of 14 years (2002-2015) for a total of 110 companies listed on Amman Stock Exchange (75 industrial and 35 services). Results indicate that although Jordanian firms seek a target leverage ratio, their adjustment towards that target is Asymmetrical and high profitable and large companies tend to adjust faster than low profitable and small size companies.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI CASH HOLDINGS PERUSAHAAN DI BURSA EFEK INDONESIA

2017 ◽  
Vol 21 (3) ◽  
pp. 336
Author(s):  
Suherman Suherman
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Fixed Effect Model ◽  
Sales Growth ◽  
Financial Firms ◽  
Positive Effects ◽  
Cash Conversion Cycle ◽  
Effect Model ◽  
Negative Effect

The purpose of this study is to examine determinants of cash holdings of non-financial firms listed on Indonesia Stock Exchange between 2012 and 2015. Sample of this research covers 328 firms (1312 observations). This research employs fixed effect model. The results show that net working capital and sales growth have positive effects on cash holding, while firm size has negative effect. Cash flow, cash flow variability, cash conversion cycle, liquidity, leverage do not affect the cash holdings.

scholarly journals APPROBATION OF THE FEDERAL BUDGET DEFICIT MANAGEMENT PORTFOLIO MODEL

2019 ◽  
Vol 29 (5) ◽  
pp. 589-595
Author(s):  
D.M. Mikhaylov
Keyword(s):  
Budget Deficit ◽  
Federal Budget ◽  
Fiscal Year ◽  
Model Parameters ◽  
Federal Law ◽  
Planning Period ◽  
Economic Agents ◽  
Federal Budget Deficit ◽  
Macroeconomic Uncertainty ◽  
The Impact

The article tested a modification of the G. Markowitz’s model for the task of managing the federal budget deficit in the formation of the federal law about the federal budget for the next fiscal year and for the planning period. The logical-mathematical method of empirical research was used in modeling with the use of theoretical conclusions in the sphere of public finance. The possibility of practical use of such a model is justified by the given assessment of the model parameters based on actual data for 2010-2017. Based on historical data, restrictions on the marginal volume of revenue planning from deficit financing sources are assumed. Because of macroeconomic uncertainty potential revenues are projected using interval coefficients. The effectiveness of the federal budget deficit management portfolio constructed according to the model is proposed to be compared with the deficit management parameters laid down in the federal budget in 2018. In addition, based on the assessment of the impact of diversification and expectations of economic agents (in the model presented as "transaction costs") the article discussed the feasibility of using the model in planning the management of the federal budget deficit. Taking into account the empirical results it is concluded that ignoring the expectations of the planning period in the formation of the federal budget deficit management strategy can lead to significant losses in revenues.

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