scholarly journals THE IMPACT OF CASH HOLDING ON DEBT COST

2021 ◽  
Vol 11 (6) ◽  
pp. 75-93
Author(s):  
Souad Chaieb
Keyword(s):  
Cash Holding ◽  
Debt Cost ◽  
The Impact

Impact of Corporate Governance on the Cash Holding of the Firms: An Empirical Study of Indian Manufacturing Sector

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 47-52
Author(s):  
Karam Pal Narwal ◽  
Sonia Jindal
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Manufacturing Sector ◽  
Control Variable ◽  
Cash Holding ◽  
Executive Directors ◽  
Control Effect ◽  
Board Size ◽  
Indian Manufacturing Sector ◽  
The Impact

The paper empirically examines the impact of corporate governance on the cash holding of the firms. The components of corporate governance are measured by board size, board meeting, audit committee members, directors remuneration and non executive directors and the cash holding is measured with the log of average cash and size is taken as control variable for the control effect on the dependent variables. Moreover, correlation and panel regression model were employed to examine the relationship between the corporate governance and cash holding. Empirical data was collected from 96 firms over the period of 2004-05 to 2013-14. The results show that directors remuneration and the number of audit committee members positively influence the cash holding and the board size also positively influences the cash holding whereas, the non executive directors and the board meetings do not play any role in enhancing the cash holding.

scholarly journals ARUS KAS, CASH HOLDING, KENDALA PENDANAAN DAN INVESTASI DI INDONESIA

AdBispreneur ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 169
Author(s):  
Risal Rinofah
Keyword(s):  
Cash Flow ◽  
Financial Constraints ◽  
Average Rate ◽  
Cash Flows ◽  
Cash Holding ◽  
Investment Level ◽  
Show Evidence ◽  
The Impact ◽  
A Company ◽  
Positive Effect

ABSTRACTThis study aims to detect Cash Flow, Cash Holding and Financial Constraints effect on investment decisions of companies in Indonesia. Some of the previous studies outside Indonesia show evidence of the impact of cash flows and financial constraints on it’s investment level.Using Multiple Regression and Logistic Regression model, on five years data observation shows that cash flow and cash holding have a positive effect on investment level. Interaction test shows the effect of cash flow on investment in financially constrained different from financially unconstrained companies. In other words, the average rate of investment changes caused by the level of cash flow is the same for both companies. While the effect of cash holding on investment, no different in the company that financially constraint and financially unconstraint company.The contribution of this research is to provide insight to the parties related to the importance of cash flow and cash holding to the investment of a company. Based on the results it can be concluded that companies that have cash flow and high cash holding have greater investment opportunities, especially in companies that have problems in finding sources of funding.   ABSTRAKPenelitian ini bertujuan untuk mendeteksi pengaruh Arus Kas, Cash Holding dan Kendala Finansial terhadap keputusan investasi perusahaan di Indonesia. Beberapa penelitian sebelumnya di luar Indonesia menunjukkan bukti ada pengaruh Arus Kas dan Kendala Keuangan pada tingkat investasi.Dengan menggunakan model Regresi Berganda dan Regresi Logistik, pada pengamatan data selama lima tahun menunjukkan bahwa Arus Kas dan Cash Holding berpengaruh positif terhadap tingkat investasi. Uji interaksi menunjukkan pengaruh Arus Kas terhadap investasi pada perusahaan yang mengalami kendala pendanaan berbeda dengan perusahaan yang tidak mengalami kendala pendanaan. Dengan kata lain, tingkat rata-rata perubahan investasi yang disebabkan oleh tingkat arus kas adalah sama untuk kedua perusahaan. Sedangkan pengaruh Cash Holding terhadap investasi, tidak berbeda pada perusahaan yang mengalami kendala pendanaan maupun tidak.Kontribusi dari penelitian ini adalah untuk memberikan wawasan kepada pihak-pihak yang terkait dengan pentingnya arus kas dan Cash Holding untuk investasi perusahaan. Berdasarkan hasil tersebut dapat disimpulkan bahwa perusahaan yang memiliki Arus Kas dan Cash Holding yang tinggi memiliki peluang investasi yang lebih besar, terutama pada perusahaan yang memiliki masalah dalam mencari sumber pendanaan. 

Cash holding and performance analysis of mutual funds: a case of an emerging financial market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faisal Khan ◽  
Syed Hamid Ali Shah ◽  
Romana Bangash
Keyword(s):  
Mutual Funds ◽  
Cash Holding ◽  
High Turnover ◽  
Content Type ◽  
Effect Regression ◽  
Agency Issues ◽  
Fama And French ◽  
Run Up ◽  
And Performance ◽  
The Impact

PurposeThis study is about the determinants of cash holding and impact of cash holding on mutual funds’ performance. In addition, the study analyzes the impact of performance-related determinants of cash holding on funds' performance.Design/methodology/approachPanel data of ten years of 190 open-end mutual funds are analyzed through fixed effect regression technique. The risk-adjusted funds' performance of cash based portfolios is computed through capital asset pricing model (CAPM) (1964), Fama and French (1993) and Carhart (1997) models.FindingsThe results indicate that small size funds, high charging front-end load funds, high turnover ratio funds, high 12-month fund returns run up, high dividend paying funds and high redemption level funds hold more cash for precautionary purpose to avoid costs of cash short-falls. Further, monthly average raw returns and risk-adjusted performance of funds with the lowest raw and residual cash holding are found higher than the funds with the highest cash holding. An increase in cash is found to dilute performance.Originality/valueThis is a pioneer study in a corporate environment with shallow capital market, reliance of businesses on bank credit, firms exposed to agency issues, wealth expropriations and existence of business groups with political linkages but with opportunities of investments due to expected favorable geo-socio-political situation. The study generates outcomes relevant for other similar economies.

scholarly journals The Impact of Monetary Policy Shocks on Corporate Dynamic Investment Activity With Financial Heterogeneity

SAGE Open ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 215824402098868
Author(s):  
Mahbuba Aktar ◽  
Mohammad Zoynul Abedin ◽  
Anupam Das Gupta
Keyword(s):  
Monetary Policy ◽  
Investment Efficiency ◽  
Cash Holding ◽  
Monetary Policy Shocks ◽  
Investment Activity ◽  
Public Firms ◽  
Study Approach ◽  
Policy Shocks ◽  
Monetary Policy Shock ◽  
The Impact

This article assesses the differential reactions of firms’ investment to monetary policy shocks based on various financial heterogeneity measures, such as leverage and cash holdings. It applies U.S. public firms’ panel data from the sample period 1990Q1 to 2007Q4 and high-frequency event-study approach. Low-leverage and high cash holding firms react more to monetary policy shocks explaining the different investment activities. For the high-leverage and low cash holding firms, the two monetary policy shock variable interactions are statistically insignificant. However, they are statistically significant for the low-leverage and high cash holding firms. During a contractionary monetary policy period, higher cash holding firms improve investment efficiency. This article strengthens the literature of corporate investment behavior which can assist advance and optimize macrocontrol policies.

Corporate Governance's Policy on the Impact of Cash Holding in Indonesia

2021 ◽  
Vol 9 (4) ◽  
pp. 594-603
Author(s):  
Anisa Kusumawardani ◽  
Rizky Yudaruddin ◽  
Yanzil Azizi Yudaruddin
Keyword(s):  
Cash Holding ◽  
The Impact

scholarly journals Financial constraints and the interdependence of corporate financial decisions

2019 ◽  
Vol 55 (3) ◽  
pp. 339-354
Author(s):  
Guilherme Kirch ◽  
Paulo Renato Terra
Keyword(s):  
Fixed Effects ◽  
Financial Constraints ◽  
Cash Flows ◽  
Cash Holding ◽  
Financial Policies ◽  
Content Type ◽  
Financial Decisions ◽  
Investment Financing ◽  
Endogenous Variables ◽  
The Impact

Purpose This paper aims to examine the interdependence of financial decisions (investment, financing, dividends and cash-holding) under financial constraints. Design/methodology/approach The authors specify and estimate a system of simultaneous equations with panel data and firm fixed effects by three-stage least squares in a sample of firms from 62 countries from 1996 to 2010. Findings The main findings largely corroborate previous studies regarding the interdependence of financial decisions. The authors also find evidence suggesting that financial constraints have a major impact on firms’ financial decisions. The results also suggest that financial constraints manifest themselves in virtually all firms, indicating that such constraints are a matter of degree and not of kind. Research limitations/implications Implications regarding the impact of cash flows on investment and cash-holding decisions are only partially confirmed. Practical implications The results are consistent with the hypothesis that financial constraints distort the financial policies of firms. For the purpose of formulating policies that reduce these distortions, the authors emphasize the role of the availability of internal funds and the recoverable fraction of assets in easing financial constraints, thus allowing for greater investment on the part of firms. Social implications The results suggest that regulators should promote policies that reduce the dependence of corporate investment on internally generated cash flows. Originality/value Unlike previous studies, the authors account for the direct impact endogenous variables could have on each other. In addition, they explore the impact of each country’s particular legal environment on the pledgeability of assets at the company level.

scholarly journals Cash Holding and Firm Value in the Presence of Managerial Optimism

2021 ◽  
Vol 14 (8) ◽  
pp. 356
Author(s):  
Ashfaq Habib ◽  
M. Ishaq Bhatti ◽  
Muhammad Asif Khan ◽  
Zafar Azam
Keyword(s):  
Linear Relationship ◽  
Firm Value ◽  
Manufacturing Firms ◽  
Economic Conditions ◽  
Cash Holding ◽  
The Novel ◽  
Non Linear ◽  
Managerial Optimism ◽  
The Impact

Cash holding is important for Chinese manufacturing firms coping with the increasing costs of financing and tough economic conditions. This study examines the impact of cash holding on the firm value of Chinese manufacturing businesses. We found evidence that a non-linear relationship exists between cash holding and firm value in these companies. The study reveals that a higher level of cash holding in financially constrained firms negatively affects the firm value, while unconstrained firms with a less cash holding level have a better firm value. Finally, this research is enriched by implementing the novel measure of managerial optimism. Revealed is the interactive role of cash holding and optimism and how they affect firm value. The study concludes that managerial optimism influences a firm’s cash holding decisions, and this is more costly for unconstrained firms.

scholarly journals The Impact of Managerial Ownership on the Cash Holdings in the Cement Sector of Pakistan

2021 ◽  
Vol 2 (1) ◽  
pp. 97-105
Author(s):  
MUHAMMAD SOHAIL KHALIL ◽  
MUHAMMAD AAMIR NADEEM ◽  
MUHAMMAD AAMIR NADEEM ◽  
SAQIB SHAHZAD
Keyword(s):  
Panel Data ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Institutional Ownership ◽  
Multiple Regression Model ◽  
Managerial Ownership ◽  
Cash Holding ◽  
Independent Variables ◽  
The Impact ◽  
The Relationship

The study aims to investigate the impact of managerial ownership on the cash holdings in cement sector of Pakistan. For the purpose 15 Companies were selected from the sector as the rest were delisted from Pakistan stock exchange. The independent variables such as managerial ownership, institutional ownership and annual profit and leverage ratios were tested against the dependent variable cash holdings for the period of 09 years. Panel data was taken i.e. from 2007 to 2015 from business recorder and respective websites of the companies. Multiple regression model was used to determine the relationship between the variables further ANOVA test was also used to check overall association of independent variables on cash holding yielding positive and significant results.

Sign in / Sign up

Export Citation Format

Share Document