The impact of the global financial crisis on corporate cash holdings: Evidence from Eastern European countries
BORSA ISTANBUL REVIEW, cilt.22, sa.4, ss.678-687, 2022 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 22 Sayı: 4
- Basım Tarihi: 2022
- Doi Numarası: 10.1016/j.bir.2021.10.002
- Dergi Adı: BORSA ISTANBUL REVIEW
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, EconLit, Directory of Open Access Journals
- Sayfa Sayıları: ss.678-687
- Anahtar Kelimeler: Cash holdings, Global financial crisis, Adjustment speed, Eastern Europe, INTERNATIONAL EVIDENCE, DETERMINANTS, FIRMS, GOVERNANCE, LIQUIDITY, FLOW
- Hacettepe Üniversitesi Adresli: Evet
Özet
This study investigates the impact of the global financial crisis on the determinants of corporate cash holdings and adjustments towards target cash levels using a sample of Eastern European firms. Employing panel fixed effects and GMM estimations, the results reveal that firm-level determinants of cash holdings significantly differ for pre-and post-crisis periods. Moreover, we find significantly lower adjustment speed to attain the optimal cash level in the post-crisis period. Our results are robust to correction for endogeneity. These results hold important im-plications for Eastern European firms, which are significantly afflicted by the global financial crisis in terms of liquidity shortage and limited financial flexibility. Copyright (C) 2021, Borsa _Istanbul Anonim S , irketi. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).