The Cash Holdings of Fintechs and SMEs: Evidence from OECD Countries

Kaleemullah Abbasi (), Ashraful Alam (), Noor Ahmed Brohi (), Makhmoor Fiza (), Shahzad Nasim () and Imtiaz Ali Brohi ()
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Kaleemullah Abbasi: The Begum Nusrat Bhutto Women University
Ashraful Alam: University of Salford
Noor Ahmed Brohi: The Begum Nusrat Bhutto Women University
Makhmoor Fiza: The Begum Nusrat Bhutto Women University
Shahzad Nasim: The Begum Nusrat Bhutto Women University
Imtiaz Ali Brohi: The Begum Nusrat Bhutto Women University

Chapter Chapter 13 in The Fintech Disruption, 2023, pp 329-347 from Palgrave Macmillan

Abstract: Abstract Small and Medium Enterprises (SMEs) are considered to be an important engine of an economy. Given the impact of cash holdings on the survival of SMEs, it is important to assess the factors that enhance SMEs’ cash holdings. Adopting the Generalized Method of Moments (GMM) and using member countries of the Organisation for Economic Co-operation and Development (OECD) from 2011 to 2018, we find that fintechs increase cash holdings of SMEs. Further, we find that better institutional quality strengthens the positive relation between fintechs and cash holdings. Our results suggest that managers may utilize fintechs to enhance cash holdings. Moreover, our findings are in line with the regulators’ steps toward enhancing fintech startups.

Keywords: SMEs; Fintechs; Cash holdings; GMM (search for similar items in EconPapers)
JEL-codes: O33 O50 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psincp:978-3-031-23069-1_13

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DOI: 10.1007/978-3-031-23069-1_13

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