Corporate cash holding under liquidity crisis: A Panel analysis of Zimbabwean firms

Nathan Mugumisi, Wilford Mawanza

Abstract


ABSTRACT

The study sort to establish the determinants of corporate cash holdings in Zimbabwe. The study was based on 29 nonfinancial firms listed on the Zimbabwe Stock Exchange selected from all sectors including Properties, Agriculture, and Mining among others. The study was based on secondary data obtained from company annual reports. Descriptive statistics, the correlation matrix, the multicollinearity test, the Lagrange Multiplier test and Random effects panel regression were part of the analysis. The results demonstrated that significant positive relationship exists between dividends, return on assets, cash flow to assets and firm cash holding. Sales growth, debt maturity structure, capital expenditure and net working capital had a significant negative impact on firm corporate cash holding.


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ISSN : 2251-1555