Cash level and corporate performance: evidence from the Gulf Cooperation Council countries

Alshammari, Turki

doi:10.21511/imfi.17(4).2020.02

Cited by 6 publications

(5 citation statements)

References 29 publications

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“…For efficiency measures, the sample of conventional banks in Egypt covers 64 percent of population and includes 28 commercial banks over the period 2006–2013. The selection of output and input variables adheres to the intermediation approach, which has been widely employed in conventional bank studies, given the intermediary role of banks (Al-Gasaymeh, 2016; Allen and Rai, 1996; Alshammari, 2003; Carbo et al , 2002; Casu and Girardone, 2002; Maudos et al , 2002; Mester, 1996; Yudistira, 2004). Total costs are defined as operating and financial costs, calculated as the sum of labor expenses, physical capital expenses and interest expense.…”

Section: Methodsmentioning

confidence: 99%

“…For instance, differences in competition level could produce significant variances in the demand for banking products and services among households. In the last two decades, many researchers measured financial institutions’ efficiency using different methodological approaches, such as Fries and Taci (2006), Abdul-Majid et al (2012), Alshammari (2003) and Al-Gasaymeh (2016). Some of these studies considered country-specific environmental conditions, like inflation and population density, such as Bos and Kool (2006), while some studies assessed the effects of deregulation and liberalization on banks’ efficiency, such as Barth et al (2004), Chen et al (2005), Demirguc-Kunt et al (2004) and Pasiouras et al (2009).…”

Section: Literature Reviewmentioning

confidence: 99%

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Bank lending channel and banking sector efficiency: panel data of Egypt

Shokr

Al-Gasaymeh

2018

IJOEM

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Purpose The purpose of this paper is to examine the relevance of the bank lending channel (BLC) of monetary policy and the bank efficiency in Egypt. Design/methodology/approach This paper examines the effectiveness of bank lending channel using generalized method of moments GMM model during the period from 1996 to 2014. Also, it uses stochastic frontier approach (SFA) to examine the bank efficiency in Egypt. Findings This study supports the relevance of the BLC using panel data. Moreover, applying SFA, this paper computes cost efficiency taking account of both time and country effects directly. The finding suggests that banks with low inflation and high GDP tend to perform more efficiently. Research limitations/implications The limitation of the study is examining one country only. Practical implications The finding signals that the Central Bank of Egypt (CBE) should adjust interest rate in order to stabilize the bank loan supply. Social implications It is important for the CBE and Egyptian banks because it highlights the importance of BLC. Originality/value It examines one channel of monetary policy and bank efficiency in Egypt.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Bank lending channel and banking sector efficiency: panel data of Egypt

Shokr

Al-Gasaymeh

2018

IJOEM

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“…Literature suggests that operating cash flows have a significant positive relationship with company performance (Alshammari, 2020). Companies that have net cash inflows from the operation may experience less liquidity crisis as they can generate cash from the primary business activities (Alslehat & Al-Nimer, 2017).…”

Section: Cash Flows and Company Performancementioning

confidence: 99%

“…Companies that have net cash inflows from the operation may experience less liquidity crisis as they can generate cash from the primary business activities (Alslehat & Al-Nimer, 2017). Nonetheless, Zhang et al, (2015) suggest that a lower cash flow level may lead to better company performance, as having high cash may indicate inefficient cash management governance (Alshammari, 2020). Hence, the impact of cash flows on the company's performance is inconsistent and more empirical evidence is required to establish the relationship.…”

Section: Cash Flows and Company Performancementioning

confidence: 99%

Company Performance during Covid-19: Impact of Leverage, Liquidity and Cash Flows

Shaharuddin¹,

Mahmud

Azhari

et al. 2021

E-BPJ

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Due to the movement control order, company performance is predicted to be highly affected by Covid-19 pandemic. Thus, this study seeks to examine the impact of leverage, liquidity and cash flows from operations towards company performance during the Covid-19 pandemic. Using secondary data from public listed companies on Bursa Malaysia with two financial quarters in the financial year 2020, it is found that there is a significant impact of liquidity and cash flows from operations on company performance. This study may contribute as additional literature to future studies and provide sights to regulators in dealing with the pandemic outbreak. Keywords: Covid-19; leverage; liquidity; cash flows eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI:

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“…Is held as equity or other forms of stockholding are not included in the computation of cash balances. Alshammari (2020) surveyed 286 nonfinancial firms in the Gulf Cooperation Council (GCC) countries and spanned 2012-2018. This study's main objective is to examine the relationship between cash level and corporate performance, as well as the cash-level determinants for all nonfinancial firms.…”

Section: Literature Reviewmentioning

confidence: 99%

A Study on the Impact of Cash Management on the Financial Performance of the Listed Manufacturing Companies from Muscat Securities Market, Sultanate of Oman

Chintha¹,

Prasad²

2021

Int. j. bus. adm. stud

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Cash is a valuable yet scarce resource that all businesses have in limited quantity. Present research on cash management has focused on its connection with many important areas such as the effect on the liquidity of the business, its financial performance, bankruptcy, and the overall working capital itself. To validate the relationships between cash management and financial performance, 36 companies listed in Muscat Securities Market (MSM) had been chosen over time, starting from 2014 ending to 2019. For this, the study used cash management ratios, which were the Cash Ratio (CR), Operating Cash to Debt Ratio (OC-DR), and the financial performance ratios are Return on Assets (ROA), Return on Equity (ROE) and Net Profit Ratio (NPR). The CR has a statistically significant positive correlation with ROA of 0.176, ROE of 0.103 and NPR of 0.193 values. The OC-DR also has a statistically significant positive relationship with ROA (0.471), ROE (0.133), and NPR (0.422). The R-square value was 17.8%, where NPR is a dependent variable. When Return on Asset has been taken as a dependent variable, the R-square value was identified as 22.2%. But ROE has a limited impact on the independent variables with 2%. Overall, the main conclusion drawn is that cash management practices used by the Omani manufacturing firms are explaining a significant amount of the financial performance However other relevant factors such as the amount of manufacturing sales contracts received, the social development status of the business, impact of the financial crisis within the economy on the demand of the goods or commodities etc. may influence the cash management practices and draw a better conclusion. The findings can be helpful for policy makers in understanding the main factors that impact cash management and how these factors can be regulated.

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Cash level and corporate performance: evidence from the Gulf Cooperation Council countries

Cited by 6 publications

References 29 publications

Bank lending channel and banking sector efficiency: panel data of Egypt

Bank lending channel and banking sector efficiency: panel data of Egypt

Company Performance during Covid-19: Impact of Leverage, Liquidity and Cash Flows

A Study on the Impact of Cash Management on the Financial Performance of the Listed Manufacturing Companies from Muscat Securities Market, Sultanate of Oman

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