What Drives the Liquidity of Industrial Firms?

Yomna Abdulla, Rabab Ebrahim, Sumathi Kumaraswamy and Muhammad Junaid

Global Business Review, 2024, vol. 25, issue 2_suppl, S90-S102

Abstract: We investigate the cash management policy of Turkish industrial firms during the period 1998–2018. Our findings indicate the relative stability of cash holdings of industrial firms with a mean of 12.84 per cent of total assets, which is higher compared to other Turkish firms. Overall, cash flow, sales growth, leverage, net working capital and capital expenditures are the main drivers of cash holdings. We examine the effect of one of the indicators of asymmetric information—earnings quality score on the level of cash holdings. The results show that firms with high earnings quality score tend to hold a high level of cash due to operational use. Finally, we conclude that the drivers of cash holdings also differ in firms with high versus low earnings quality score.

Keywords: Cash holdings; emerging market; crises; earnings quality; financial policy (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0972150920966830 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:25:y:2024:i:2_suppl:p:s90-s102

DOI: 10.1177/0972150920966830

Access Statistics for this article

More articles in Global Business Review from International Management Institute
Bibliographic data for series maintained by SAGE Publications ().