Does IFRS-9 affect cash holdings? Evidence from non-financial institutions

Vincent Taiwah

Accounting Research Journal, 2025, vol. 38, issue 2, 283-301

Abstract: Purpose - This paper aims to test whether the implementation of IFRS-9 financial instrument affects a firm’s cash holdings. Design/methodology/approach - Consistent with prior studies, this paper uses difference-in-difference estimation on a sample of 37,328-year observations of non-financial listed firms. Findings - This study finds robust and consistent evidence of an increase in cash holding following the implementation of IFRS 9. The increase in cash holding can be attributed to the increase in bad debt provisions, which have curtailed trade receivables. The results remain similar under different assumptions and firm characteristics. Originality/value - This study extends the literature on the consequences of IFRS 9 to working capital in non-financial institutions, a less conspicuous area but relevant in the corporate environment.

Keywords: Expected credit loss; IFRS- 9; Non-financial firms; Cash holdings; Trade receivables (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

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:eme:arjpps:arj-02-2024-0064

DOI: 10.1108/ARJ-02-2024-0064

Access Statistics for this article

Accounting Research Journal is currently edited by Yaowen Shan and DaiFei "Troy" Yao

More articles in Accounting Research Journal from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().