An Analysis Regarding Cash Holdings. Empirical Study on the Bucharest Stock Exchange Listed Firms
| Autor: | Elena Alexandra Nenu, Georgeta Vintila |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2017 |
| Předmět: |
cash flow
L25 Monetary economics lcsh:Business Cash flow forecasting cash holdings 0502 economics and business G31 Cash on cash return Price/cash flow ratio 050207 economics leverage Cash management Finance 050208 finance liquidity business.industry 05 social sciences General Business Management and Accounting Cash conversion cycle Operating cash flow Cash flow Cash flow statement Business lcsh:HF5001-6182 General Economics Econometrics and Finance C23 |
| Zdroj: | Scientific Annals of Economics and Business, Vol 64, Iss 3, Pp 289-306 (2017) |
| ISSN: | 2501-3165 2005-2014 |
| Popis: | 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. |
| Databáze: | OpenAIRE |
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