The purpose of this paper is to identify the determinants and indicate their impact on the company’s cash holdings in the wholesale industry in ten Balkan countries. Effective cash holdings management is key to any company’s healthy and smooth business operation, so comprehending and analyzing the relationship between the company’s internal determinants and cash holdings is vital. The sample used for this work included 106 companies, whose operations were studied over a four-year period (2014–2017), using the panel data model with fixed effects. The obtained results showed that three of the five observed variables (size, leverage, non-cash liquid assets, profitability and asset tangibility) have a statistically significant impact on the company’s cash holdings. It was determined that larger wholesale companies generally hold less cash, primarily due to more favorable external sources of financing, thus, financially stronger wholesale companies on the Balkans are likely to hold less cash. Only by practicing adequate inventory management and receivables collection policy can wholesale companies ensure effective working capital, leading to the fact that more profitable wholesale companies hold more cash. The realized profit of wholesale companies is used to increase liquidity as well as to stimulate business growth and development. The research results revealed that, in order to achieve an optimal cash holdings level, the observed wholesale companies in Balkan countries tend to constantly balance between profitability and liquidity. This paper contributes to improving the liquidity of wholesale companies in Balkan countries. It also offers wholesale companies assistance in establishing and maintaining an optimal cash holdings policy in order to reduce the potential risk of financial distress enable them to take advantage of all investment alternatives to maximize profit. All stakeholders will benefit from the developed model with significant determinants of the cash holdings policy along with the findings of this paper, especially when making decisions related to the cash holdings policy of wholesale companies and improving the overall business efficiency.
Сажетак: Пословање предузећа у савременим тржишно-економским условима је изразито турбулентно, и захтева стално прилагођавање тим условима. Константне иновације у техничко-технолошком и економском смислу, пре свега адекватно управљање новчаним токовима као и прибављање и улагање новчаних средстава, представљају "conditio sine qua non" сваког модерног предузећа. Најбржи и најзаступљенији вид прибављања додатних средстава јесте позајмњивања од стране кредитора. Кредитори морају да процене да ли је једно предузеће кредитно способно, на основу достављених података, пре него му одобри средства. Циљ научног рада јесте да прикаже могућност да се путем статистичких модела уз примену квантитативних индикатора (аналитичких показатења) предузећа, може стећи довољно добро становиште како би се донела прелиминарна оцена о кредитној способности предузећа.
The main issue for all creditors in the Republic of Serbia is how to effectively lend to companies, with adequate increase of rate of return. Namely, domestic creditors are using traditional credit analysis methods, which are very slow and very expensive, or on the other hand using one of the world most developed models for assessing company's creditworthiness, which are still not adapted to the characteristics and performance of domestic companies. It is emphasized from a professional and practical standpoint, that the models for assessing company's creditworthiness developed for individual market, give significantly better results than other "standardized models", and this represents the basic assumption of this research. Financial statements of domestic companies, together with their analytical indicators, in best way reflect their characteristics. As such, they are the basis for developing a model for assessing companies' creditworthiness, which is the main goal of the research. The hypothesis of the paper is "Respecting the characteristics of domestic companies, it is possible to develop a creditworthiness analysis model for the Republic of Serbia, that will be more efficient than generally known models". The result of the research is a model that can be practically applied, which contributes to increasing efficiency in decision making, and which should represent "condition sine qua non" of each lender in Serbia.
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