Analysis of cash holding for measuring the efficiency of cash management: A study on IT sector
For measuring the efficiency of management of cash, cash holding is one of the most important financial decisions that the manager of the concerned organization, has to make in the organization. Basically, it is observed that the organization hold cash for future purposes is very negligible. If the...
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| Format: | Article |
| Language: | English |
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Growing Science
2015-01-01
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| Series: | Management Science Letters |
| Subjects: | |
| Online Access: | http://www.growingscience.com/msl/Vol5/msl_2014_332.pdf |
| _version_ | 1818211326560829440 |
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| author | Somnath Das |
| author_facet | Somnath Das |
| author_sort | Somnath Das |
| collection | DOAJ |
| description | For measuring the efficiency of management of cash, cash holding is one of the most important financial decisions that the manager of the concerned organization, has to make in the organization. Basically, it is observed that the organization hold cash for future purposes is very negligible. If the organization invested cash in profitable securities then there is some flexibility but when it relates to the capital market holding cash is not advantageous. Generally two contradictory theories such as Trade-off theory and the Pecking order theory are considered for measuring the efficiency of cash management. In this study we generally observed measured the efficiency of Cash Management influenced by Cash Holding. We also measured whether cash holding of the organization is affected with the degree of financial leverage, size of the organization, investment and profitability. This study helps us to understand the influence of DFL, Investment and Size of the organization on Cash holding. Proper holding of cash in cash management can prevent the bankruptcy of any organization and also increases the efficiency of Cash or Liquidity management. |
| first_indexed | 2024-12-12T05:30:43Z |
| format | Article |
| id | doaj.art-1b8ddb77683b432b9d33a78cbc5b8c33 |
| institution | Directory Open Access Journal |
| issn | 1923-2934 1923-9343 |
| language | English |
| last_indexed | 2024-12-12T05:30:43Z |
| publishDate | 2015-01-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj.art-1b8ddb77683b432b9d33a78cbc5b8c332022-12-22T00:36:20ZengGrowing ScienceManagement Science Letters1923-29341923-93432015-01-0151515810.5267/j.msl.2014.12.008Analysis of cash holding for measuring the efficiency of cash management: A study on IT sectorSomnath DasFor measuring the efficiency of management of cash, cash holding is one of the most important financial decisions that the manager of the concerned organization, has to make in the organization. Basically, it is observed that the organization hold cash for future purposes is very negligible. If the organization invested cash in profitable securities then there is some flexibility but when it relates to the capital market holding cash is not advantageous. Generally two contradictory theories such as Trade-off theory and the Pecking order theory are considered for measuring the efficiency of cash management. In this study we generally observed measured the efficiency of Cash Management influenced by Cash Holding. We also measured whether cash holding of the organization is affected with the degree of financial leverage, size of the organization, investment and profitability. This study helps us to understand the influence of DFL, Investment and Size of the organization on Cash holding. Proper holding of cash in cash management can prevent the bankruptcy of any organization and also increases the efficiency of Cash or Liquidity management.http://www.growingscience.com/msl/Vol5/msl_2014_332.pdfCash holdingCash managementTrade off theoryPecking order theory |
| spellingShingle | Somnath Das Analysis of cash holding for measuring the efficiency of cash management: A study on IT sector Management Science Letters Cash holding Cash management Trade off theory Pecking order theory |
| title | Analysis of cash holding for measuring the efficiency of cash management: A study on IT sector |
| title_full | Analysis of cash holding for measuring the efficiency of cash management: A study on IT sector |
| title_fullStr | Analysis of cash holding for measuring the efficiency of cash management: A study on IT sector |
| title_full_unstemmed | Analysis of cash holding for measuring the efficiency of cash management: A study on IT sector |
| title_short | Analysis of cash holding for measuring the efficiency of cash management: A study on IT sector |
| title_sort | analysis of cash holding for measuring the efficiency of cash management a study on it sector |
| topic | Cash holding Cash management Trade off theory Pecking order theory |
| url | http://www.growingscience.com/msl/Vol5/msl_2014_332.pdf |
| work_keys_str_mv | AT somnathdas analysisofcashholdingformeasuringtheefficiencyofcashmanagementastudyonitsector |