scholarly journals Factors affecting Corporate Cash Holdings: A study of Non-financial Institutions Listed on the Ghana Stock Exchange.

2020 ◽  
Keyword(s):  
Financial Institutions ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Factors Affecting ◽  
Ghana Stock Exchange ◽  
Corporate Cash Holdings

scholarly journals The Effect of Leverage on Corporate Cash Holdings: Evidence from Indonesian Manufacturing Firms

2018 ◽  
Vol 9 (2) ◽  
pp. 61-72
Author(s):  
Anggita Langgeng Wijaya ◽  
Name Bandi
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Negative Influence ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Multiple Regressions ◽  
The Impact ◽  
Corporate Cash Holdings ◽  
Study Hypothesis

The objective of this research is to test the impact of leverage on corporate cash holdings for sample of manufacturing companies enlisted on the Indonesian Stock Exchange over the period 2006-2007. Population of this research is all of manufacturing companies on the Indonesian Stock Exchange. The sampling method is purposive. The study hypothesis was tested using multiple regressions. The results show that leverage has a negative influence on corporate cash holdings. Indonesian manufacturing firms with high leverage can hold cash in small amounts because debt is a substitute for corporate cash holdings.

Cash Holdings and Corporate Governance

2022 ◽  
pp. 395-416
Author(s):  
Elif Akben-Selcuk ◽  
Pinar Sener
Keyword(s):  
Corporate Governance ◽  
Cash Flow ◽  
Linear Relation ◽  
Cash Holdings ◽  
Family Ownership ◽  
Board Structure ◽  
Factors Affecting ◽  
Cash Reserves ◽  
Nonfinancial Firms ◽  
Corporate Cash Holdings

This chapter investigates the empirical factors affecting corporate cash holdings with special emphasis on corporate governance variables for a sample of Turkish-listed nonfinancial firms over the period 2006 to 2010. The findings reveal a significant non-linear relation between family ownership and cash holdings. In addition, while board structure does not significantly affect the level of cash holdings, tunneling increases cash reserves of firms. Furthermore, the results indicate that cash flow, leverage, other liquid assets that can be used as cash substitutes, the degree of tangibility of assets, and firm size are important in determining cash holdings among Turkish companies.

Measuring financial distress of non-bank financial institutions of Bangladesh using Altman’s Z-Score model

2020 ◽  
Vol 13 ◽  
pp. 15-28
Author(s):  
Mohammad Rifat Rahman ◽  
Md. Mufidur Rahman ◽  
Athkia Subat
Keyword(s):  
Financial Institutions ◽  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Vital Role ◽  
Annual Reports ◽  
Z Score ◽  
Factors Affecting ◽  
Financial Soundness ◽  
The Government

Non-bank financial institutions (NBFIs) are recognized as the fundamental of a financial market as they complement the banking institutions. Since 1981, NBFIs have been playing a vital role in the economic growth of Bangladesh. Unfortunately, in the recent years most of the NBFIs have been found financially distressed. However, few NBFIs that were included in our sample claimed themselves as potential companies with sound financial performance though it was highly criticized. Therefore, the motivation for conducting this study is to examine the financial soundness of selected NBFIs using Altman’s Z score (1995). This study involved 20 NBFIs out of 23 Dhaka Stock Exchange (DSE) listed institutions, which were selected based on information availability by considering A, B and Z categories from 2014 to 2018 period. The secondary data were collected from the annual reports of the selected companies over the period. The findings are as follows: 95% of the 20 NBFIs were in distress zone during the study period and only 5% NBFIs were in safe zone during 2017-2018 period. Therefore, the analysis predicted that within the upcoming years a few of the NBFIs will be approaching bankruptcy. Finally, it is suggested that the government, respective regulatory authority, and policy makers to pay an immediate attention on mitigating the factors affecting the financial distress.

scholarly journals Determinants of corporate cash holdings: evidence from Vietnamese materials firms

2021 ◽  
Author(s):  
Chi Tran Hue ◽  
Dzung Phan Tran Trung
Keyword(s):  
Cash Holdings ◽  
Cash Flows ◽  
Stock Exchanges ◽  
Liquidity Management ◽  
Factors Affecting ◽  
Cash Conversion Cycle ◽  
Factors Influencing ◽  
Determining Factors ◽  
Effect Estimation ◽  
Corporate Cash Holdings

This paper investigates factors affecting cash holdings of materials firms listed on Vietnamese stock exchanges. By analyzing data collected from 51 companies in a period of 7 years (from 2013-2019), using FGLS procedure based on fixed effect estimation, the study shows that leverage, profitability, cash conversion cycle, cash flows, and growth opportunities significantly affect the level of cash holdings of Vietnamese materials companies. This study adds more insights in the field of liquidity management in general and cash management in particular by determining factors influencing cash holdings. Outcomes from this research would help managers, investors, and consultants in making corporate governance decisions.

Do female executives and CEO tenure matter for corporate cash holdings? Insight from a Southeast Asian country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suherman Suherman ◽  
Berto Usman ◽  
Titis Fatarina Mahfirah ◽  
Renhard Vesta
Keyword(s):  
Capital Market ◽  
Capital Expenditure ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Southeast Asian ◽  
Female Executives ◽  
Content Type ◽  
Ceo Tenure ◽  
Two Measures ◽  
Corporate Cash Holdings

Purpose This paper aims to investigate the relationship between female executives, chief executive officer (CEO) tenure and corporate cash holdings in the context of the developing Southeast Asian capital market (Indonesia). Design/methodology/approach The sample was screened from 231 publicly listed companies in the Indonesian Stock Exchange. The period of observation was 2011–2017. Two measures were applied for corporate cash holdings: the ratio of cash and cash equivalent to total assets and cash and cash equivalent to net assets. Three surrogate indicators were used for female executives: female CEO, the proportion of female members in the board of management and the number of female members in the board of management. CEO tenure is the length of time a CEO has been a member of the board of management. This study uses panel data regression analysis, including the fixed effect model with clustered standard errors. Findings The empirical evidence indicates that female executives and CEO tenure are positively and negatively associated with corporate cash holdings, respectively, and both are significantly related. Additional analysis using lagged independent variables remains consistent with the main analysis, suggesting that corporate cash holding becomes higher as a female presence in the board of management increases. Research limitations/implications Empirical tests set in Indonesia suggest that female executives are more conservative and risk-averse, thereby holding more cash with a precautionary motive. The findings also imply that CEOs with long tenure focus on long-term performance such as increasing research and development investments or capital expenditure, thus holding less cash. Accordingly, policymakers and regulators should promote diversity issues proportionally and advance to the board level. Originality/value This study contributes to the field of executive and CEO studies by enriching the empirical findings in related topics. In addition, to the best of the authors’ knowledge, this is one of the first studies applying two measures of cash holdings in the setting of a developing Southeast Asian capital market (Indonesia).

scholarly journals An Analysis Regarding Cash Holdings. Empirical Study on the Bucharest Stock Exchange Listed Firms

2017 ◽  
Vol 64 (3) ◽  
pp. 289-306 ◽  
Author(s):  
Elena Alexandra Nenu ◽  
Georgeta Vintilă
Keyword(s):  
Multivariate Regression ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Ownership Concentration ◽  
Target Level ◽  
Listed Firms ◽  
Tangible Assets ◽  
Financial Conservatism ◽  
Corporate Cash Holdings ◽  
Unbalanced Panel Data

Abstract Worldwide corporate cash holdings have significantly increased and have become an important tool for managers. This study explores the factors that influence firms’ behavior regarding cash holdings and the signal that financial conservatism is sending to potential investors. Our data consists in annual observations collected through the Reuters Eikon platform. It includes companies listed on the Bucharest Stock Exchange, the investigated period being 2005-2014. The econometric analysis employs multivariate regression for an unbalanced panel data, using the OLS technique. The results show a positive correlation of cash holdings with the value registered by this indicator in the previous period, fact that might be interpreted as an attempting of the companies to maintain a target level of cash. Also, the results showed a non-linear relationship between leverage and cash holdings, while the tangible assets determine a negative correlation. As regards firm size and ownership concentration, the correlations were not statistically validated.

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