Determinants of cash holdings in private firms

ǂthe ǂcase of the Slovenian SMEs

Marija Angelovska (Avtor), Aljoša Valentinčič (Avtor)

Povzetek

This paper examines the determinants of cash holdings in a large sample of the Slovenian small and medium sized companies in the period 2006-2013. The empirical results provide support for the transactions and precautionary motives in the cash policies of the analysed SMEs. However, we find evidence in favour of the speculative motive as well, by ascertaining that smaller, exporting and more profitable firms hold more cash. The paper also establishes that the net working capital and financial debt can be considered as cash substitutes and that keeping close relationships with banks reduces agency costs and information asymmetries and leads to lower cash levels. In addition, the ability to internally generate funds expressed as higher operating cash flow reduces the amounts of cash held. Finally, evidence shows that longer cash conversion cycles and requirements for mandatory retirement benefit contributions result in higher cash balances, while weaker empirical support is found also for the negative influence of the interest rate level on cash holdings.

Ključne besede

Slovenia;SMEs;cash flows;liquidity;

Podatki

Jezik:	Angleški jezik
Leto izida:	2020
Tipologija:	1.01 - Izvirni znanstveni članek
Organizacija:	UL EF - Ekonomska fakulteta
UDK:	658
COBISS:	22703875
ISSN:	1580-0466
Št. ogledov:	391
Št. prenosov:	106
Ocena:	0 (0 glasov)
Metapodatki:

Ostali podatki

Sekundarni jezik:	Slovenski jezik
Sekundarni naslov:	Determinante gotovinskega salda v zasebnih podjetjih
Sekundarne ključne besede:	Slovenija;majhna in srednja podjetja;denarni tokovi;likvidnost;
Vrsta dela (COBISS):	Članek v reviji
Strani:	str. 5-36, 153
Letnik:	ǂVol. ǂ22
Zvezek:	ǂno. ǂ1
Čas izdaje:	2020
DOI:	10.15458/ebr95
ID:	11924528