20.500.12556/RUL-117839 Determinants of cash holdings in private firms the case of the Slovenian SMEs Determinante gotovinskega salda v zasebnih podjetjih This paper examines the determinants of cash holdings in a large sample of the Slovenian small and medium sized companies in the period 2006-2013. The empirical results provide support for the transactions and precautionary motives in the cash policies of the analysed SMEs. However, we find evidence in favour of the speculative motive as well, by ascertaining that smaller, exporting and more profitable firms hold more cash. The paper also establishes that the net working capital and financial debt can be considered as cash substitutes and that keeping close relationships with banks reduces agency costs and information asymmetries and leads to lower cash levels. In addition, the ability to internally generate funds expressed as higher operating cash flow reduces the amounts of cash held. Finally, evidence shows that longer cash conversion cycles and requirements for mandatory retirement benefit contributions result in higher cash balances, while weaker empirical support is found also for the negative influence of the interest rate level on cash holdings. Slovenia SMEs cash flows liquidity Slovenija majhna in srednja podjetja denarni tokovi likvidnost true false false Angleški jezik Slovenski jezik Članek v reviji 2020-07-29 13:20:56 2020-07-29 13:28:14 2022-08-30 04:00:33 0000-00-00 00:00:00 2020 0 0 Str. 5-36, 153 iss. 1 Vol. 22 2020 0000-00-00 Zaloznikova NiDoloceno NiDoloceno 0000-00-00 0000-00-00 0000-00-00 658 1580-0466 10.15458/ebr95 22703875 103864832 RAZ_Angelovska_Marija_2020.pdf RAZ_Angelovska_Marija_2020.pdf 1 FB4030BEC12FAB802EA3E39712DED250 8b434c48ce5705ab8b5f13d7b5ba8986fa0c5d19e9c58dcab0997b01098e1b35 46fa1e45-a1b9-11eb-a523-00155dcfd717 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=131759 Ekonomska fakulteta Economic and business review 0 0 0