The Level of Cash Holdings and Financial Performance: Evidence from Firms Listed on Borsa Istanbul 50 Index

Year 2024, , 467 - 476, 22.04.2024

Ahmet Özcan

https://doi.org/10.33206/mjss.1281263

Abstract

Cash is of great importance to firms operating in emerging economies. Cash, one of the most important assets, creates shareholder value when rationally used by firm management. This paper aims to reveal the relationship between financial performance and cash holdings by using a sample that consists of non-financial firms listed in Borsa Istanbul 50 index. The result of empirical analysis provides strong evidence that financial performance is positively influenced by cash holdings. Further, firm size, capital intensity ratio and current ratio did not significantly influence the financial performance of sample firms, while financial performance of sample firms is significantly influenced sales growth and financial leverage. Overall, the research findings indicate that firm-specific factors are important factors that affect the relationship between financial performance and cash holdings. The present paper provides important insights for creditors, shareholders and firm management on the impacts of cash holding levels on financial performance.

Keywords

Cash Holdings, Financial Performance, Cash Management

Ethical Statement

In the writing process of the study titled “The Level of Cash Holdings and Financial Performance: Evidence from Firms Listed on Borsa Istanbul 50 Index”, there were followed the scientific, ethical and the citation rules; was not made any falsification on the collected data and this study was not sent to any other academic media for evaluation.

Nakit Bulundurma Düzeyi ve Finansal Performans: Borsa İstanbul 50 Endeksinde Yer Alan Firmalardan Kanıtlar

Abstract

Gelişmekte olan ülkelerde faaliyet gösteren firmalar için nakit büyük bir önem arz etmektedir. Firmalar için en önemli varlıklar arasında yer alan nakit, firma yönetimi tarafından rasyonel olarak kullanılması durumunda hissedar değerini artırmaktadır. Bu makale, Borsa İstanbul 50 endeksinde yer alan finansal olmayan firmalardan oluşan bir örneklem kullanarak finansal performans ile nakit bulundurma düzeyi arasındaki ilişkiyi araştırmayı amaçlamaktadır. Regresyon analizinin sonuçları, finansal performansın yüksek düzeyde tutulan nakit varlıklardan olumlu etkilendiğine dair güçlü kanıtlar sunmaktadır. Ayrıca, firma büyüklüğü, sermaye yoğunluğu oranı ve cari oran, örnek firmaların finansal performansını önemli ölçüde etkilemezken, satış büyümesi ve finansal kaldıraç örnek firmaların finansal performansını önemli ölçüde etkilemektedir. Genel olarak, araştırma bulguları, firmaya özgü faktörlerin finansal performans ile nakit tutma arasındaki ilişkiyi etkileyen önemli faktörler olduğunu göstermektedir. Bu çalışma kreditörler, hissedarlar ve firma yönetimi için nakit tutma seviyesinin finansal performans üzerindeki etkileri hakkında önemli bilgiler sunmaktadır.

Keywords

Nakit Bulundurma, Finansal Performans, Nakit Yönetimi

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