TY  - JOUR
TT  - Financial Theories with a Focus on Corporate Cash Holding Behavior: A Comprehensive Review
AU  - Tahir, Muhammad Sohail
AU  - Alifiah, Mohd Norfian
AU  - Arshad, Muhammad Usman
AU  - Saleem, Faiza
PY  - 2016
DA  - May
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 215
EP  - 219
VL  - 6
IS  - 3
KW  - Cash Management
KW  - Financial Theories
KW  - Financial and Investment Policies
N2  - This study reviews the role of different financial theories such as, trade off theory, pecking order theory and free cash flow theory in the decision making of corporate cash management practices. The review also shed a light on the ground breaking study of Modigliani and Miller (1958) in the field of corporate financial behavior. Majority of the literature depicts the prominence of trade off theory and pecking order theory in the cash management practices of firms. However, some empirical and theoretical studies also described the significance of free cash flow theory. Because, the managers desires to hold the distinctive power in the firm’s financial and investment policies through holding higher cash level. Most importantly, based on the previous empirical findings, this study warrants the need to empirically extent the significance of financial theories in the future at sector level.
UR  - https://dergipark.org.tr/tr/pub/ijefi/issue//352681
L1  - https://dergipark.org.tr/tr/download/article-file/363613
ER  -