INVESTIGATING THE FINANCIAL DETERMINANTS OF CORPORATE CASH HOLDINGS: EVIDENCE FROM FIXED EFFECTS REGRESSION METHOD
The current research paper investigates the financial determinants of corporate cash holdings using a sample of 83 listed manufacturing and services corporations in the Amman stock exchange – Jordan over the period, 2009 – 2020. The fixed effects regression method based on the results of the Hausman test is used for estimation purposes. However, the results indicated that there is a statistically significant negative effect of foreign ownership, investment policy, financial leverage, and networking capital on corporate cash holdings. Besides, the return on equity and the firm size has a statistically significant positive effect on the corporate cash holdings. This study has vital implications for the business managers to better understand the importance of corporate cash holdings and their determinants, especially in formulating financial policies in corporations
Corporate Cash Holdings; Fixed Effects Regression Method; Jordan.