Do Polish non-financial listed companies hold cash to lend money to other firms?

• Authors: Białek-Jaworska Anna
• Languages of publication: EN

Abstracts

EN

This paper aims to identify factors influencing Polish non-financial corporate lending to other entities starting from the recognition motives and sources of cash holdings. The research analyzed panel data of 754 non-financial companies listed on the Warsaw Stock Exchange with use of tobit panel and generalized least squares method. Cash holding is motivated by a transaction motive, a protection against risk by the use of derivatives, investment opportunities and lending money. Non-financial companies try to step into the shoes of financial institutions by lending using money gained from their cash flow, especially when they have long-term investments.

Keywords

EN

cash holdings; lending money; loans; non-financial companies; cash flow

• Publisher: Uniwersytet Ekonomiczny w Poznaniu. Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu
• Journal: Economics and Business Review
• Year: 2017
• Volume: 3(17)
• Issue: 4
• Pages: 87-110

Dates

published

2017-12-20

Contributors

author

Białek-Jaworska Anna

• University of Warsaw, Faculty of Economic Sciences, Długa 44/5, 00-241, Warsaw, Poland

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Identifiers

DOI

10.18559/ebr.2017.4.6