The Global Financial Crisis and Adjustment Speed of Cash Holdings

Tekin, Hasan; Polat, Ali Yavuz; Muğaloğlu, Erhan

doi:10.18506/anemon.888504

Cited by 3 publications

(1 citation statement)

References 29 publications

(8 reference statements)

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“…Kuzucu (2021) claims that the causality from cash holding to stock liquidity is stronger than the causality from the reverse direction. Tekin et al (2021) found that BIST-listed companies adjust their cash holding faster during the Global Financial Crisis, utilizing declining loan supply and increasing interest costs during times of crisis.…”

Section: Cash Holdings Studies In Turkeymentioning

confidence: 99%

The Moderator Effect of Institutional Ownership on the Relationship between Cash Holdings of Life-Cycle Stages: Evidence from Borsa Istanbul

Mersni¹,

Can²

2022

berj

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Section: Cash Holdings Studies In Turkeymentioning

confidence: 99%

The Moderator Effect of Institutional Ownership on the Relationship between Cash Holdings of Life-Cycle Stages: Evidence from Borsa Istanbul

Mersni¹,

Can²

2022

berj

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How Do Geopolitical Risk and Global Trade Shape Corporate Cash Policy?

Tekin

GÜRBÜZ

Kayadibi

2022

The Transformation of Global Trade in a New World

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This chapter investigates the influence of geopolitical risk (GPR) and global trade on cash holdings with the existence of the global financial crisis 2008-2009 (GFC) for 11,960 non-financial firms in 18 markets from 2002 to 2017. Findings show that firms in countries with higher GPR and lower trade volume have higher cash balances confirming the predictions of the precautionary motive of cash. The implications of the findings are manifold. Managers should shape their cash policies considering the uncertainties, GPR, and trade level. Investors should consider countries' financial crises and GPR in specifying where and which firms to invest in. Policymakers can reshape the regulations and policies related to holding cash rather than paying dividends not to hurt firms in times of turbulence like the pandemic. Researchers and practitioners should count the macro-specific factors and market turmoil and their influence on cash holding in risky countries. The implications are particularly relevant to the post-pandemic era when exogenous shocks and uncertainties are further expected.

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Rule of Law, International Trade, and Corporate Financing Decisions in Europe

Polat

2022

The Transformation of Global Trade in a New World

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This chapter investigates whether the institutional environment that the firms operate has an impact on their leverage choice. Namely, rule of law is used as an institutional variable. Considering that better implementation of rule of law impacts positively firms' export performance, total exports in each country are also used as the other main explanatory variable. The findings show that both institutional variables and exports negatively and significantly affect the leverage level. This implies that firms in favorable institutional environment tend to borrow less, which results with lower leverage. Moreover, this study finds that the COVID-19 pandemic period as an unprecedented shock to economies pushed the leverage levels higher. Regarding the implications of the findings, firms' capacity to access external finance especially during a significant crisis period depends on the institutional environment. Namely, the effective implementation of rule of law should be first priority for the policy makers.

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The Global Financial Crisis and Adjustment Speed of Cash Holdings

Cited by 3 publications

References 29 publications

The Moderator Effect of Institutional Ownership on the Relationship between Cash Holdings of Life-Cycle Stages: Evidence from Borsa Istanbul

The Moderator Effect of Institutional Ownership on the Relationship between Cash Holdings of Life-Cycle Stages: Evidence from Borsa Istanbul

How Do Geopolitical Risk and Global Trade Shape Corporate Cash Policy?

Rule of Law, International Trade, and Corporate Financing Decisions in Europe

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