DETERMINANTS OF CASH HOLDINGS -A LITEARTURE REVIEW
DOI:
https://doi.org/10.17605/OSF.IO/5TSGEAbstract
Cash holding plays a significant role in a company's day-to-day operations, hedging unforeseen market risks, acquisition, capital expenditure planning, upcoming liability payments and taking long-term value-enhancing investment decisions. Without cash holdings, companies cannot deal with their financing, operation, risk management and investment activities Extensive researches have been done by scholars on the topic of optimal level of corporate cash holding and factors that influence corporate cash holding. This paper discusses the motivation of cash holding and introduces the factors affecting corporate cash holding. This paper also presents the issues that researcher’s should pay attention to in this field.
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