Determinants of corporate cash holdings in tranquil and turbulent period: evidence from an emerging economy

Khalil Jebran (), Amjad Iqbal (), Kalim Ullah Bhat (), Muhammad Arif Khan () and Mustansar Hayat ()
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Khalil Jebran: Dongbei University of Finance and Economics
Amjad Iqbal: Fudan University
Kalim Ullah Bhat: Dongbei University of Finance and Economics
Muhammad Arif Khan: Dalian University of Technology
Mustansar Hayat: Dongbei University of Finance and Economics

Financial Innovation, 2019, vol. 5, issue 1, 1-12

Abstract: Abstract Using a sample of 280 firms listed on the Pakistan Stock Exchange, we empirically investigate factors that determine corporate cash holdings in different periods from 2005 to 2014. We divide the sample into three sub-periods—pre-crisis, crisis, and post-crisis—and apply a panel data model to estimate the results. The results suggest that financial crises affect firms’ cash holdings policies. Further, findings show that financial crisis has influenced the relationship of size and leverage with cash holdings. In particular, cash flow, liquidity, and tangibility are major determinants of cash holdings in the sub-periods. We present important implications for corporate managers, academicians, and policymakers.

Keywords: Cash holdings; Financial crisis; Pakistan; Emerging economy (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (11)

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DOI: 10.1186/s40854-018-0116-y

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