Determinants of cash holdings in private firms : the case of the Slovenian SMEs

Angelovska, Marija (avtor), Valentinčič, Aljoša (avtor)

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.

• Jezik: Angleški jezik
• Ključne besede: Slovenia, SMEs, cash flows, liquidity
• Vrsta gradiva: Članek v reviji
• Tipologija: 1.01 - Izvirni znanstveni članek
• Organizacija: EF - Ekonomska fakulteta
• Različica publikacije: Objavljena publikacija
• Leto izida: 2020
• Št. strani: Str. 5-36, 153
• Številčenje: Vol. 22, iss. 1
• PID: 20.500.12556/RUL-117839
• UDK: 658
• ISSN pri članku: 1580-0466
• DOI: 10.15458/ebr95
• COBISS.SI-ID: 22703875
• Datum objave v RUL: 29.07.2020

Gradivo je del revije

• Naslov: Economic and business review
• Skrajšan naslov: Econ. bus. rev
• Založnik: Ekonomska fakulteta
• ISSN: 1580-0466
• COBISS.SI-ID: 103864832

Licence

• Licenca: CC BY-NC-SA 4.0, Creative Commons Priznanje avtorstva-Nekomercialno-Deljenje pod enakimi pogoji 4.0 Mednarodna
• Povezava: http://creativecommons.org/licenses/by-nc-sa/4.0/deed.sl
• Opis: Licenca Creative Commons, ki prepoveduje komercialno uporabo in zahteva, da uporabnik predelana dela objavi z enako licenco.
• Začetek licenciranja: 29.07.2020

Sekundarni jezik

• Jezik: Slovenski jezik
• Naslov: Determinante gotovinskega salda v zasebnih podjetjih
• Ključne besede: Slovenija, majhna in srednja podjetja, denarni tokovi, likvidnost