A South African Perspective on the Corporate Cash Holding Conundrum

Ilse Botha, Carol Thompson

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In recent years, much media attention has been given to cash holding increases of non-financial companies all over the globe. The objective of this chapter is to investigate the cash holding behavior of South African financial and non-financial firms listed on the Johannesburg Stock Exchange (JSE). Internal and external cash holding determinants of South African financial and non-financial firms listed on the Johannesburg Stock Exchange (JSE) are identified. For the purpose of this study, financial, market, and economic data were analyzed for the period 2005–2019. Panel regression analysis was employed, and it was found that the fixed effects (FE) model suited the data best. The contribution of this study is the inclusion of financial firms to identify internal and external determinants of cash holdings in a South African contexts. Findings show that the determinants between financial and non-financial firms are similar, although the coefficient sizes of the determinants differed between financial and non-financial firms.

Original languageEnglish
Title of host publicationApplied Economic Research and Trends - 2023 International Conference on Applied Economics, ICOAE 2023
EditorsNicholas Tsounis, Aspasia Vlachvei
PublisherSpringer Nature
Pages37-50
Number of pages14
ISBN (Print)9783031491047
DOIs
Publication statusPublished - 2024
EventInternational Conference on Applied Economics, ICOAE 2023 - Brno, Czech Republic
Duration: 29 Jun 20231 Jul 2023

Publication series

NameSpringer Proceedings in Business and Economics
ISSN (Print)2198-7246
ISSN (Electronic)2198-7254

Conference

ConferenceInternational Conference on Applied Economics, ICOAE 2023
Country/TerritoryCzech Republic
CityBrno
Period29/06/231/07/23

Keywords

  • Cash holdings
  • Internal and external determinants
  • Panel regression analysis

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • General Economics,Econometrics and Finance

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