- Liquidity; Networking Capital; Leverage; Return on Assets; Firm size; Cash holdings
Abstract
The purpose of this study is to discover those factors which effect liquidity level. Data of 59 nonfinancial firm has been collected for this purpose for the period 2006-2013. Results show that significant variables are networking capital, short term debt, firm size, dividend and investment, while leverage, sales growth, and ROA are insignificant variables. Leverage, sales growth and investment have negative relationship with liquidity, while networking capital, short term debt, ROA, firm size and dividend have positive impact on dependent variable. Therefore results explore that different factors like networking capital, short term debt, firm size, dividend and investment play essential role in determining the level of firms’ cash holdings.