Stock Liquidity and Cash Holdings: Evidence from Malaysia

The level of cash held by listed companies has raised academic interest. In particular, many studies have been conducted to understand the reason why hold so much cash. Previous on determinants holdings focused firm-specific characteristics. More recently, researchers found that stock liquidity played an important role in explaining holding behaviour. This study examines effect among Malaysia. findings indicate a positive impact holdings. suggests higher propensity repurchase its own stocks, which resulted liquidity.