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DETERMINANTS OF CORPORATE CASH HOLDINGS IN TEXTILE SECTOR OF PAKISTAN

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14 Pages : 182-199

http://dx.doi.org/10.31703/ger.2021(VI-I).14      10.31703/ger.2021(VI-I).14      Published : Mar 2021

Determinants of Corporate Cash Holdings in Textile Sector of Pakistan

Abstract

    This study analyzes the impact of tools used for cash holding in the textile sector of Pakistan for the period of 14 years (2005-2018). The tools consist of firm dimension, influence, capital expenditure, expansion opportunity, liquidity, cash stream and cash stream instability and extra expenditure. Unbalanced dynamic panel data is engaged for empirical estimation. For estimation of consistent result active panel information i-e Two-step scheme widespread process of moments is used. System generalized method of moments (GMM) design estimation reveals that compact dimension control, capital expenses, cash stream, cash stream instability and extra dummy affect cash holdings positively while liquidity and growth opportunities affect cash holdings negatively. Lagged cash is used as an instrumental variable and its positive implication (coefficient) reveal that the prior year reserve of cash have a significant impact on the current year and, suggesting these companies have a target level of cash. The academic implication indicates that larger companies in the textile sector retain more cash and easy access to diversify and advance sophisticated technology projects and furthermore will compete in the open market economy.

    Cash Holding, Generalized Method of Moments, Textile Sector, Pakistan

    (1) Hira Ali Khan
    MS Scholar
    (2) Wisal Ahmad
    Assistant Professor, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.
    (3) Ihtesham Ur Rahman
    Lecturer, Abdul Wali Khan University, Mardan, KP, Pakistan.
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Cite this article

APA

    APA : Khan, H. A., Ahmad, W., & Rahman, I. U. (2021). Determinants of Corporate Cash Holdings in Textile Sector of Pakistan. Global Economics Review, VI(I), 182-199. https://doi.org/10.31703/ger.2021(VI-I).14

CHICAGO

    CHICAGO : Khan, Hira Ali, Wisal Ahmad, and Ihtesham Ur Rahman. 2021. "Determinants of Corporate Cash Holdings in Textile Sector of Pakistan." Global Economics Review, VI (I): 182-199 doi: 10.31703/ger.2021(VI-I).14

HARVARD

    HARVARD : KHAN, H. A., AHMAD, W. & RAHMAN, I. U. 2021. Determinants of Corporate Cash Holdings in Textile Sector of Pakistan. Global Economics Review, VI, 182-199.

MHRA

    MHRA : Khan, Hira Ali, Wisal Ahmad, and Ihtesham Ur Rahman. 2021. "Determinants of Corporate Cash Holdings in Textile Sector of Pakistan." Global Economics Review, VI: 182-199

MLA

    MLA : Khan, Hira Ali, Wisal Ahmad, and Ihtesham Ur Rahman. "Determinants of Corporate Cash Holdings in Textile Sector of Pakistan." Global Economics Review, VI.I (2021): 182-199 Print.

OXFORD

    OXFORD : Khan, Hira Ali, Ahmad, Wisal, and Rahman, Ihtesham Ur (2021), "Determinants of Corporate Cash Holdings in Textile Sector of Pakistan", Global Economics Review, VI (I), 182-199

TURABIAN

    TURABIAN : Khan, Hira Ali, Wisal Ahmad, and Ihtesham Ur Rahman. "Determinants of Corporate Cash Holdings in Textile Sector of Pakistan." Global Economics Review VI, no. I (2021): 182-199. https://doi.org/10.31703/ger.2021(VI-I).14