Bank loan availability and corporate cash holdings of unlisted firms

Eriko Naiki and Yuta Ogane

Pacific-Basin Finance Journal, 2025, vol. 93, issue C

Abstract: This paper examines why unlisted firms hold cash using a firm-level panel dataset of 2,580 unlisted firms in Japan between fiscal years 2000 and 2022. The major findings of this paper are as follows. First, unlisted firms hold excess cash if they cannot use bank loans. Second, these firms hold cash for precautionary motives when bank loans are unavailable. Third, there is no evidence that their cash-holding behavior is affected by bank power.

Keywords: Cash holdings; Unlisted firms; Bank loans; Precautionary motives; Bank power (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:93:y:2025:i:c:s0927538x25001684

DOI: 10.1016/j.pacfin.2025.102831

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