Corporate Cash Holding Behavior and Financial Environment: A Critical Review
Research on corporate liquidity management practices has mainly focused on the trade-off between the potential costs and benefits of holding cash. However, in order to improve the firm financial performance, much remained to be understood, particularly, the cash holding behavior of firms. Furthermor...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2015-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/1391 |
| _version_ | 1797911731040681984 |
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| author | Muhammad Sohail Tahir Mohammad Norfian Alifiah |
| author_facet | Muhammad Sohail Tahir Mohammad Norfian Alifiah |
| author_sort | Muhammad Sohail Tahir |
| collection | DOAJ |
| description | Research on corporate liquidity management practices has mainly focused on the trade-off between the potential costs and benefits of holding cash. However, in order to improve the firm financial performance, much remained to be understood, particularly, the cash holding behavior of firms. Furthermore, this study reveals that contemporary literature in the area of cash management may overlook the industry and institutional context of firms at sector level. In addition, sectors are important to study due to their unique characteristics and heterogeneity in the financial environment. Therefore, in order to improve the firm's financial performance, future studies in developing markets can be focused on the potential impact of different financial environment, particularly, the significance of capital structure and dividend policies on corporate cash holding mechanism at sector level.
Keywords: Financial Performance; Capital Structure; Dividend Policy; Cash Holding
JEL Classifications: N2
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| first_indexed | 2024-04-10T11:46:34Z |
| format | Article |
| id | doaj.art-a6066f8202d34f16b3400561c561fef1 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:46:34Z |
| publishDate | 2015-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-a6066f8202d34f16b3400561c561fef12023-02-15T16:17:21ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382015-07-0151SCorporate Cash Holding Behavior and Financial Environment: A Critical ReviewMuhammad Sohail TahirMohammad Norfian AlifiahResearch on corporate liquidity management practices has mainly focused on the trade-off between the potential costs and benefits of holding cash. However, in order to improve the firm financial performance, much remained to be understood, particularly, the cash holding behavior of firms. Furthermore, this study reveals that contemporary literature in the area of cash management may overlook the industry and institutional context of firms at sector level. In addition, sectors are important to study due to their unique characteristics and heterogeneity in the financial environment. Therefore, in order to improve the firm's financial performance, future studies in developing markets can be focused on the potential impact of different financial environment, particularly, the significance of capital structure and dividend policies on corporate cash holding mechanism at sector level. Keywords: Financial Performance; Capital Structure; Dividend Policy; Cash Holding JEL Classifications: N2 http://mail.econjournals.com/index.php/ijefi/article/view/1391 |
| spellingShingle | Muhammad Sohail Tahir Mohammad Norfian Alifiah Corporate Cash Holding Behavior and Financial Environment: A Critical Review International Journal of Economics and Financial Issues |
| title | Corporate Cash Holding Behavior and Financial Environment: A Critical Review |
| title_full | Corporate Cash Holding Behavior and Financial Environment: A Critical Review |
| title_fullStr | Corporate Cash Holding Behavior and Financial Environment: A Critical Review |
| title_full_unstemmed | Corporate Cash Holding Behavior and Financial Environment: A Critical Review |
| title_short | Corporate Cash Holding Behavior and Financial Environment: A Critical Review |
| title_sort | corporate cash holding behavior and financial environment a critical review |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/1391 |
| work_keys_str_mv | AT muhammadsohailtahir corporatecashholdingbehaviorandfinancialenvironmentacriticalreview AT mohammadnorfianalifiah corporatecashholdingbehaviorandfinancialenvironmentacriticalreview |