| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 6 |
NO. 2 |
PAPER 4 |
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LIQUIDITY IN MALAYSIAN PUBLIC LISTED COMPANIES |
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| J.Raja* and M.Kalyanasundaram** |
| * Faculty of Business and Law, Multimedia University, Malacca, Malaysia |
| * Faculty of Commerce, Urumu Dhanalakshmi College, Trichy, Tamil Nadu, India |
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| 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. |
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