Impact of financial constraints and financial distress on cash holdings

Abstract The aim of the study is to examine impact financial constraints and distress on cash holdings, both in normal crisis times. We collected 4,406 firm-year observations companies listed Warsaw Stock Exchange (WSE). Our research shows that maintain higher holdings during a than period. However, contrast our expectations, with difficulties (constraints distress) have lower originality lies realizing different sources might overlap at same time (external internal). also analyze how react combined natures believe recently increased their meaning as we face situation constant increasing uncertainty: still ongoing COVID-19 prolonged Russian aggression Ukraine outburst inflation.