 Cash holdings in start-ups: The role of founder sociodemographic characteristicsCristina Gaio, Tiago Gonçalves () and Ana Venâncio Journal of Business Research, 2022, vol. 139, issue C, 520-528 Abstract: In this study, we examine the determinants of excess cash holdings on start-ups paying particular attention to the role of the sociodemographic and educational characteristics of the founder. Using a mandatory database that combines firm-level financial data with the founder’s data, we find that founder characteristics provide predictive power in explaining excess cash holdings. Male founders who are older and foreign tend to hold more cash. Additionally, we find that start-ups with greater investment opportunities hold less cash. As expected, excess cash holdings decrease with size and availability of liquid-asset substitutes, and leverage – particularly short-term debt –increases the need for cash. Results are robust to mixed methods (Ordinary Least Squares and Fuzzy-set Qualitative Comparative Analysis) and reflect asymmetric configurations related to the demographic and educational characteristics of the founder. Keywords: Cash holdings; Start-ups; Cash determinants; Trade-off theory; Upper echelons theory; fsQCA (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:139:y:2022:i:c:p:520-528 DOI: 10.1016/j.jbusres.2021.09.046 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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