Corporate Cash Holding and Monetary Policy
Öz
Corporate cash holding behavior is important to understand firms in terms of management and decision-making, and the finance literature provides diverse views on the determinants of corporate cash holdings. In this study, we examine the cash holding decision from a macroeconomic perspective and investigate whether monetary policy affects firms’ cash holding decisions. Our analysis based on Turkish listed non-financial firms suggests that monetary policy has no effect on corporate cash holdings, contrary to recent empirical evidence. In this regard, the results infer that the relationship between monetary policy and cash holding decisions established before in the literature could not be generalizable.
Anahtar Kelimeler
Kaynakça
- Abdioğlu, N., 2016, Managerial ownership and corporate cash holdings: Insights from an emerging market, Business and Economics Research Journal, 7(2), 29-41.
- Altman, Edward I., 2005, An emerging market credit scoring system for corporate bonds, Emerging Markets Review 6, 311–323.
- Al-Najjar, B., 2015, The Effect of Governance Mechanisms on Small and Medium-Sized Enterprise Cash Holdings: Evidence from the United Kingdom, Journal of Small Business Management, 53(2), pp. 303-320.
- Al-Najjar, B., and Clark, E., 2017, Corporate governance and cash holdings in MENA: Evidence from internal and external governance practices, Research in International Business and Finance, 39, 1-12.
- Belghitar, Y., and Khan, J., 2013, Governance mechanisms, investment opportunity set and SMEs cash holdings, Small Business Economics, 40, 59-72.
- Blundell, Richard, and Stephen Bond, 1998, Initial conditions and moment restrictions in dynamic panel data models, Journal of Econometrics 87, 115–143.
- Boubakri, N., El Ghoul, S., and Saffar, W., 2013, Cash holdings of politically connected firms, Journal of Multinational Financial Management, 23, 338-355.
- Chang, K., and Noorbakhsh, A., 2009, Does national culture affect international corporate cash holdings?, Journal of Multinational Financial Management, 19, 323-342.
- Chen, Y., Dou, P. Y., Rhee, S. G., Truong, C., and Veeraraghavan, M., 2015, National culture and corporate cash holdings around the world, Journal of Banking & Finance, 50, 1-18.
- Chen, R., El Ghoul, S., Guedhami, O., and Nash, R., 2018, State Ownership and Corporate Cash Holdings, Journal of Financial and Quantitative Analysis, 53(5), 2293-2334.