Nonprofit Cash Holdings

Abstract

This study examines the determinants and implications of nonprofit cash holdings. Based on agency theory and traditional literature of cash holdings, the author develop and test a number of predictions about nonprofit cash holdings. Several important findings can be highlighted. Nonprofit cash holdings do not seem to be detrimental to nonprofits; in fact, their levels can be explained with traditional precautionary and speculative motives. Additionally, governance and managerial proxies indicate that nonprofit cash holdings may not be a function of agency problems. Consistent with a harmless interpretation of cash holdings, nonprofits with higher excess cash tend to invest more in land, buildings, and equipment than those that hold less cash. Finally, donors do not penalize organizations that hold high levels of cash.

Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia

“…In addition, higher debt will lower the firm value, because according to the investor's view, the risk will be higher. It is in accordance with the results of (Osazuwa & CheAhmad, 2016;Shah, 2011 other party. Thus, the parties associated with the company do not have the same information regarding the firm's future prospects and risks.…”

The determinants of non-profit growth: do social enterprise initiatives matter?

“…Alternatively, cash holdings could be used by entrenched managers to derive private benefits or engage in value decreasing acquisitions as per Jensen (1986). Ramirez (2010) shows that non-profit cash holdings do not seem to respond to traditional transactional and insurance reasons, but rather are correlated with various governance and agency explanations. For these reasons, the sign of this coefficient remains an empirical question.…”

Determinan saldo kas akhir tahun pada pemerintah daerah di Aceh

“…2 Saldo kas akhir tahun pemerintah daerah menunjukkan total uang tunai dan saldo simpanan di bank yang dapat digunakan selama tahun berjalan untuk membiayai kegiatan atau memenuhi kewajiban pemerintah daerah. 3 Salah satu keputusan keuangan yang terpenting pada organisasi nirlaba adalah menetapkan seberapa banyak kas yang tersedia (Ramirez 2011). Jika terlalu sedikit maka dapat membahayakan keberlangsungan 1 http://dictionary.cambridge.org/dictionary/english/cash-holdings 2 Istilah neraca dan laporan posisi keuangan digunakan bergantian dalam makalah ini tanpa adaperbedaan makna di antara keduanya.…”

“…Apabila terlalu banyak, maka akan menimbulkan financial opportunity cost dan merugikan para pemangku kepentingan (Hansmann 1980;Fisman dan Hubbard 2003). Namun, dari perspektif tata kelola dan manajerial, penentuan saldo kas atau kas di tangan pada akhir tahun di sektor nirlaba bukan merupakan fungsi dari persoalan keagenan (Ramirez 2011).…”

“…Menurut Ramirez (2011), organisasi nirlaba yang memiliki saldo kas besar cenderung melakukan investasi lebih pada aset tetap daripada organisasi yang memegang kas sedikit. Ramirez (2011) juga menemukan bahwa alasan cash holdings pada organisasi nirlaba mirip dengan perusahaan/swasta. Organisasi nirlaba yang memiliki cash holdings tinggi dicirikan dengan ukuran yang lebih kecil, memiliki pendapatan yang lebih berisiko, dan memiliki net income lebih tinggi.…”