Effect of firm-specific and macroeconomic conditions on corporate cash holdings: evidence from FMCG companies in India / Reeti Gaur and Rajinder Kaur.

Gaur, Reeti and Kaur, Rajinder (2018) Effect of firm-specific and macroeconomic conditions on corporate cash holdings: evidence from FMCG companies in India / Reeti Gaur and Rajinder Kaur. Asia-Pacific Management Accounting Journal (APMAJ), 13 (3). pp. 55-77. ISSN 1675-3194 (issn) ; 2550-1631 (eissn)

Abstract

This paper attempts to find out the effects of firm-specific and macroeconomic variables on corporate cash holdings. Panel data regression analysis was applied on the selected FMCG companies in India for the years2001-02 to 2016-17. The analysis showed that FMCG firms in India prefer keeping huge amounts of cash reserves and one of the preferred sources of cash holdings is cash flow. However, large scale and highly levered firms do not have large cash holdings. On the other hand, among the macroeconomic variables economic growth and bank lending rate play a significant role while amaking cash holding decisions. The paper has tried to fill the gap in previous literature that often ignore the role of macroeconomic elements in cash holding decisions.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Gaur, Reetireetz.gaur@gmail.com
Kaur, Rajinderrajindergb@yahoo.com
Subjects: H Social Sciences > HB Economic Theory. Demography > Macroeconomics
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 1675-3194 (issn) ; 2550-1631 (eissn)
Volume: 13
Number: 3
Page Range: pp. 55-77
Item ID: 29520
Uncontrolled Keywords: Cash holding, Macroeconomics, Panel data
URI: http://ir.uitm.edu.my/id/eprint/29520

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