Corporate sector cash holding – optimal levels, macro context, or external shocks? Cover

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Corporate sector cash holding – optimal levels, macro context, or external shocks?

International Journal of Management and Economics

Volume 59 (2023): Issue 4 (December 2023)

By: Tomasz Berent and Maciej Śniechowski

Open Access

|Dec 2023

Figures & Tables

CR (MEAN-CR) for Poland’s public companies over 1Q2004–1Q2021.
Source: Own calculations. — CR (MEAN-CR) for Poland’s public companies over 1Q2004–1Q2021. Source: Own calculations.

MEAN-CR and MEDIAN-CR for Poland’s public companies over 2004–2020.
Source: Own calculations. — MEAN-CR and MEDIAN-CR for Poland’s public companies over 2004–2020. Source: Own calculations.

MEAN-CR for Poland’s public companies and GDP over 2004. GDP (right-hand axis).
Source: Own calculations. — MEAN-CR for Poland’s public companies and GDP over 2004. GDP (right-hand axis). Source: Own calculations.

MEAN-CR = f(GDP) for Poland’s public companies: 1Q 2004–4Q2019.
Source: Own calculations. — MEAN-CR = f(GDP) for Poland’s public companies: 1Q 2004–4Q2019. Source: Own calculations.

CRs for U.S. companies over 1983–2000. MEAN-CR (right-hand axis).
Source: Own calculations based on data from Bates et al. [2009]. — CRs for U.S. companies over 1983–2000. MEAN-CR (right-hand axis). Source: Own calculations based on data from Bates et al. [2009].

Time regression models

	MEAN-CR		MEDIAN-CR
DUMMY COVID		0.0245***(2.60)		0.0172***(3.50)
DUMMY PRE-GFC		0.0224***(3.47)		0.0122***(3.62)
TIME	–0.0006(–1.03)	–0,0001(–0.24)	–0.0012***(–3.39)	–0.0010***(–3.59)
R²	0.0657	0.6542	0.4338	0.8286

MEAN-CR and MEDIAN-CR in Poland, 2004–2020

Year	MEAN-CR (%)	MEDIAN-CR (%)
2004	9.1	5.1
2005	9.9	6.0
2006	10.7	6.5
2007	11.3	6.3
2008	10.0	5.5
2009	8.1	5.1
2010	8.3	5.1
2011	7.5	4.2
2012	7.1	4.1
2013	7.3	3.6
2014	7.7	3.8
2015	8.2	3.9
2016	8.1	3.7
2017	8.6	4.3
2018	8.9	4.1
2019	9.1	4.0
2020	10.7	5.3
Average	8.7	4.7

CR = f(GDP, TIME, DUMMIES) for Poland’s public companies 2004–2020

MEAN-CR	(1)	(2)	(3)	(4)	(5)	(6)
GDP	0.5994***(4.50)	0.5994***(4.50)	0.5498***(4.64)	0.5498***(4.64)	0.4041***(3.74)	0.4155***(3.76)
DUMMY COVID		0.0597***(4.88)		0.0640***(5.89)	0.0495***(5.40)	0.0525***(5.26)
DUMMY PRE-GFC					0.0159***(3.80)	0.0135**(2.64)
TIME			–0.0009**(-2.31)	–0.0009**(–2.31)		–0,0003(–0.82)
R²	0.5914	0.6465	0.7101	0.7492	0.8325	0.8414
MEDIAN-CR	(1)	(2)	(3)	(4)	(5)	(6)
GDP	0.3332**(2.43)	0.3332**(2.43)	0.2520***(3.35)	0.2520***(3.35)	0.1274(1.17)	0.1666**(2.38)
DUMMY COVID		0.0288**(2.28)		0.0357***(5.18)	0.0180*(1.96)	0.0284***(4.49)
DUMMY PRE-GFC					0.0168***(3.98)	0.0086**(2.65)
TIME			–0.0015***(–5.94)	–0.0015***(–5.94)		–0,0011***(–4.45)
R²	0.2961	0.3145	0.8107	0.8156	0.6913	0.8836

CRt = f(CRt-1, GDP, TIME) for Poland’s public companies 2004–2020

		MEAN-CR			MEDIAN-CR
CR-1	0.8315***(4.58)	0.5553***(4.28)	0.3895**(2.38)	0.8128***(5.10)	0.8318***(7.22)	0.3146(1.76)
GDP		0.2507**(2.29)	0.3036**(2.80)		–0.0053(–0.07)	0.1228*(1.85)
GDP + 1		0.2620**(2.84)	0.2371**(2.69)		0.2416***(3.71)	0.1698***(3.30)
TIME			–0.0007(–1.52)			–0.0012***(–3.23)
R²	0.5992	0.8853	0.9087	0.6497	0.9044	0.9560

Regression models for the U_S_ companies 1980–2006

	MEAN-CR					MEDIAN-CR
GDP		0.1555(1.11)	0.1006(0.72)		0.0206(0.14)		–0.1819(–1.25)
GDP+1			0.2632*(1.76)	0.2871*(1.99)	0.1854(1.34)		0.1033(0.93)
GDP-1					–0.2466*(-1.90)	–0.2612**(–2.06)	–0.2165**(–2.07)	–0.2598**(–2.52)
Time	0.0046***(14.30)	0.0045***(14.08)	0.0045***(13.57)	0.0045***(13.99)	0.0025**(2.65)	0.0022**(2.49)	0.0007*(1.69)	0.0008*(1.92)
CR-1					0.4689**(2.35)	0.5421***(2.97)	0.8931***(6.63)	0.8555***(6.53)
R²	0.8910	0.8963	0.8995	0.8971	0.9188	0.9105	0.8934	0.8775

DOI: https://doi.org/10.2478/ijme-2023-0018 | Journal eISSN: 2543-5361 | Journal ISSN: 2299-9701

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Language: English

Page range: 297 - 314

Submitted on: Jul 14, 2022

Accepted on: Jul 14, 2023

Published on: Dec 31, 2023

Published by: Warsaw School of Economics

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

cash management,

corporate liquidity

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Business management,

Management accounting, financial controlling, cost calculation, investment

© 2023 Tomasz Berent, Maciej Śniechowski, published by Warsaw School of Economics
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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