CASH-HOLDING POLICY IN BUSINESSES: AN APPLICATION ON INSURANCE COMPANIES

Author:

KARALI Muhammet1ORCID,ÖNDEŞ Turan2ORCID

Affiliation:

1. KAFKAS ÜNİVERSİTESİ

2. ATATÜRK ÜNİVERSİTESİ

Abstract

The purpose of this study is to examine the factors affecting the cash-holding level of the companies. In this context, the factors affecting the cash-holding level of the companies were examined with quarterly financial data between 2012/1- 2020/6 periods of 6 companies traded in the insurance sector in Borsa Istanbul by panel data analysis. In order to determine the method to be used in the study, first of all, the stationarity of the series was examined with the help of the panel unit root test LLC. Then, least squares regression was used. As a result of the study, the variables that have a positive and statistically significant effect on the level of cash-holding have been found to be return on assets, total debt and net sales, while the negative effects of firm size have been found to be negative and statistically significant, and finally, the negative effects of return on equity and net profit have been found to be statistically insignificant.

Publisher

Kafkas Universitesi Iktisadi ve Idari Bilimler Fakultesi Dergisi

Subject

General Medicine

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