The purpose of this paper is to identify the determinants and indicate their impact on company’s cash holdings in wholesale industry ten Balkan countries. Effective management key any healthy smooth business operation, so comprehending analyzing relationship between internal vital. sample used for work included 106 companies, whose operations were studied over a four-year period (2014–2017), us...

Globally, corporate cash holdings have risen since the 1980s. In South Africa, some commentators accused corporations of engaging in an ‘investment strike’, while others see liquidity as a precaution against systemic uncertainty. We use unique African Revenue Service/National Treasury firm-level dataset to scrutinize liquidity, using panel analysis. Relative GDP, and not increased between 2010 ...

This paper investigates the link between the optimal level of non-financial firms’ liquid assets and industry-level uncertainty. We develop a structural model of a firm’s value maximization problem that predicts that as industry-level uncertainty increases the firm will increase its optimal level of liquidity. We test this hypothesis using a panel of German firms drawn from the Bundesbank’s bal...

The purpose of this study is to investigate the effective of investment inefficiency and cash holding on CEO turnover. This study applies logistic regression method estimator to investigate the relationship between examine the effective of investment inefficiency and cash holding on CEO turnover of 1,309 firm-year observations in Iran for the period of 2009-2019.  According to positive relati...

Enhanced stock liquidity increases a firm’s propensity to hold cash. This is surprising given the view that improved reduces financial constraints. We propose firms have repurchase motive for holding Higher strengthens this incentive. Consistent with this, more liquid increase cash holdings relatively when restrictions repurchases are eased. The effect of on not influenced by access credit mark...

An examination of survey responses about Individual Retirement Account (IRA) holdings reveals that individuals often take all-or-nothing approaches in their decisions to diversify across the asset categories of cash, bonds, and equity. Two thirds of survey respondents put their entire IRA holdings into a single asset category. A surprisingly large proportion of funds is held in cash, while only...

We comprehensively examine the effects of stock return volatility on firms’ financial and investment decisions. Consistent with theories of investment with financing frictions, firms with high volatility actively reduce their leverage, cut investment, increase cash holding, cut non-cash current assets such as inventories and account receivables, and cut dividend. The effects of volatility are s...

Liquidity and Capital Structure* This paper solves for a firm's optimal cash holding policy within a continuous time, contingent claims framework that has been extended to incorporate most of the significant contracting frictions that have been identified in the corporate finance literature. Under the optimal policy the firm targets a level of cash holding that is a non-monotonic function of bu...