Factors influence Corporate Cash Holdings - Empirical Evidence From Textile Industry of Bangladesh
DOI:
https://doi.org/10.18533/ymw0j575Keywords:
corporate cash holdings, profitability, net working capitalAbstract
Cash holdings are immaterial in a world of efficient capital markets because corporations may readily raise cash to finance lucrative investment projects at low transaction costs. This paper investigates the factors determining corporate cash holdings in Bangladesh's textile sector. The study used a longitudinal cross-sectional panel data set of 53 Bangladeshi textile companies from 2012 to 2021, analyzed using multiple discriminant regression. The findings imply that corporate cash holding is influenced by firm-level (i.e., profitability, capital expenditure, fund flow from operation, net working capital, growth opportunity, leverage, dividend, firm age, and firm size) and macroeconomic factors (i.e., GDP, inflation). From an academic standpoint, this paper adds to our understanding of the cash holding level in emerging markets like Bangladesh. The study's findings may have significant practical implications for creditors, governments, regulators, and other stakeholders to create reliable credence about a company’s financial condition.
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Corresponding Author:
Mst. Maksuda Begum (begummaksuda@yahoo.com)
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