SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES VOL. 6 NO. 2 PAPER 4
 
LIQUIDITY IN MALAYSIAN PUBLIC LISTED COMPANIES
 
J.Raja* and M.Kalyanasundaram**
*   Faculty of Business and Law, Multimedia University, Malacca, Malaysia
* Faculty of Commerce, Urumu Dhanalakshmi College, Trichy, Tamil Nadu, India
 
Cash holdings are the lifeblood of any company, especially those looking forward to invest in new projects and grow in the process. Cash can be generated internally from operations or supplied by external sources. A firm becomes financially constrained when all of its existing sources of capital are unable or unwilling to supply the desired amount of funds. Therefore, maintaining appropriate levels of liquidity within the firm is crucial towards the smooth operations of any business. Managers are more likely to reserve large proportion of cash as firm’s assets for the purpose of capital expenditure, dividend payment to shareholders, and future investment opportunities.  The present study focuses on determining the levels of Corporate Cash Holdings of Malaysian Firms, across different size and different industries. Moreover, the behavior of different determinants affecting a firm’s cash holding has also been studied.
 
KEYWORDS: Cash Holdings, Capital Expenditure, Dividend Payment JEL CLASSIFICATIONS: O16, L32 FULL TEXT