Determinants of corporate cash holdings in public listed firms in Malaysia

This study examines the determinants of corporate cash holdings of 265 public listed firms in Malaysia from 2006 to 2015. All sectors are included in this sample, except the financial and utility sectors due to their different business reporting nature. The motive of cash holdings is explained bas...

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Main Author:	Hanan, Alam Faizli
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HJ Public Finance
Online Access:	https://etd.uum.edu.my/7473/1/s818102_01.pdf https://etd.uum.edu.my/7473/2/s818102_02.pdf
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id	my-uum-etd.7473
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mazlan, Ahmad Rizal
topic	HJ Public Finance
spellingShingle	HJ Public Finance Hanan, Alam Faizli Determinants of corporate cash holdings in public listed firms in Malaysia
description	This study examines the determinants of corporate cash holdings of 265 public listed firms in Malaysia from 2006 to 2015. All sectors are included in this sample, except the financial and utility sectors due to their different business reporting nature. The motive of cash holdings is explained based on the transaction, precautionary, agency, and speculative motives. Corporate cash holdings is measured by cash and cash equivalents by the total asset, while the determinant variables are size, leverage, profitability, dividend, growth opportunity, net working capital, and capital expenditure. The data were collected from Thomson Reuters Datastream database and Bursa Malaysia website. The data were then analysed using Linear Regression through the IBM SPSS Software. This study found that the corporate cash holdings in Malaysian public listed firms are determined by leverage, profitability, growth opportunity, net working capital, and capital expenditure, while firm size and dividend payout do not influence the corporate cash holdings. The result also shows that leverage, net working capital, and capital expenditure negatively influence corporate cash holdings, while profitability and growth opportunity positively influence corporate cash holdings. This implies that companies with higher leverage, liquidity, and capital expenditure will hold lower cash, while more profitable firms and firms with higher growth rate will hold more cash and vice versa. This study contributes to the existing literature on the factors that determine the corporate cash holdings.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Hanan, Alam Faizli
author_facet	Hanan, Alam Faizli
author_sort	Hanan, Alam Faizli
title	Determinants of corporate cash holdings in public listed firms in Malaysia
title_short	Determinants of corporate cash holdings in public listed firms in Malaysia
title_full	Determinants of corporate cash holdings in public listed firms in Malaysia
title_fullStr	Determinants of corporate cash holdings in public listed firms in Malaysia
title_full_unstemmed	Determinants of corporate cash holdings in public listed firms in Malaysia
title_sort	determinants of corporate cash holdings in public listed firms in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2017
url	https://etd.uum.edu.my/7473/1/s818102_01.pdf https://etd.uum.edu.my/7473/2/s818102_02.pdf
_version_	1747828224236191744
spelling	my-uum-etd.74732021-05-09T03:09:18Z Determinants of corporate cash holdings in public listed firms in Malaysia 2017 Hanan, Alam Faizli Mazlan, Ahmad Rizal School of Economics, Finance & Banking School of Economics, Finance and Banking HJ Public Finance This study examines the determinants of corporate cash holdings of 265 public listed firms in Malaysia from 2006 to 2015. All sectors are included in this sample, except the financial and utility sectors due to their different business reporting nature. The motive of cash holdings is explained based on the transaction, precautionary, agency, and speculative motives. Corporate cash holdings is measured by cash and cash equivalents by the total asset, while the determinant variables are size, leverage, profitability, dividend, growth opportunity, net working capital, and capital expenditure. The data were collected from Thomson Reuters Datastream database and Bursa Malaysia website. The data were then analysed using Linear Regression through the IBM SPSS Software. This study found that the corporate cash holdings in Malaysian public listed firms are determined by leverage, profitability, growth opportunity, net working capital, and capital expenditure, while firm size and dividend payout do not influence the corporate cash holdings. The result also shows that leverage, net working capital, and capital expenditure negatively influence corporate cash holdings, while profitability and growth opportunity positively influence corporate cash holdings. This implies that companies with higher leverage, liquidity, and capital expenditure will hold lower cash, while more profitable firms and firms with higher growth rate will hold more cash and vice versa. This study contributes to the existing literature on the factors that determine the corporate cash holdings. 2017 Thesis https://etd.uum.edu.my/7473/ https://etd.uum.edu.my/7473/1/s818102_01.pdf text eng public https://etd.uum.edu.my/7473/2/s818102_02.pdf text eng public other masters Universiti Utara Malaysia Abushammala, S. N. M., & Sulaiman, J. (2014). Cash Holdings and Corporate Profitability : Some Evidences form Jordan. International Journal of Innovation and Applied Studies, 8(3), 898–907. Afza, T., & Adnan, S. M. (2007). Determinants of Corporate Cash Holdings : A Case Study of Pakistan. In Proceedings of Singapore Economic Review Conference (SERC) (pp. 164–165). Singapore Economics Review and The University of Manchester (Brooks World Poverty Institute). Retrieved from https://editorialexpress.com/ cgibin/conference/download.cgi?db_name=SERC2007 &paper_id=166 Akguc, S., & Choi, J. (2013). Cash holdings in private and public firms: Evidence from Europe. Working Paper. 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Determinants of corporate cash holdings in public listed firms in Malaysia

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