Managerial self-interest motive may affect cash holdings and their utilization.
In short, as American firms expand at home and abroad, profits are set to rise and cash holdings to fall.
With the improvement of the financial development, the smooth effect of cash holdings will decrease, at the same time, the difference between the state-owned and non-state-owned firms is also reduced.
An empirical study on the determinants of listed corporate cash holdings;
Article13. Each unit shall set up a property inventory system and ensure that the accounting records conform to the physical assets and cash holdings.
The evidences also show that cash flow variability, cash substitutes, financial leverage, and corporate age have significantly negative relation with corporate cash holdings.
However, no evidence shows that cash flow, bank debt, and maturity structure of debt have relation with corporate cash holdings.
"cash Balance; cash holdings: Cash in immediate possession represented by coin, paper money and negotiable checks and other paper commonly accepted for immediate credit by a Bank in a deposit of cash."
vault cash; cash holdings
