Impact of financial constraints and financial distress on cash holdings

• Autorzy: Elżbieta Bukalska , Anna Maziarczyk
• Języki publikacji: EN

Abstrakty

EN

The aim of the study is to examine the impact of financial constraints and financial distress on cash holdings, both in normal and crisis times. We collected the 4,406 firm-year observations of companies listed on the Warsaw Stock Exchange (WSE). Our research shows that companies maintain higher cash holdings during a crisis than in a normal period. However, in contrast to our expectations, companies with financial difficulties (constraints and distress) have lower cash holdings both in normal and crisis times. The originality of our research lies in realizing that different sources of difficulties might overlap at the same time (external with internal). We also analyze how cash holdings react to a combined impact of difficulties of different natures (external and internal). We believe that cash holdings have recently increased their meaning as we face the situation of constant and increasing uncertainty: still ongoing COVID-19 crisis prolonged with Russian aggression on Ukraine and outburst of inflation.(original abstract)

Słowa kluczowe

EN

Money; COVID-19; Financial limitations; Financial crisis

PL

Pieniądz; COVID-19; Ograniczenia finansowe; Kryzys finansowy

• Czasopismo: International Journal of Management and Economics
• Rocznik: 2023
• Tom: 59
• Numer: nr 1
• Strony: 13--31

Twórcy

autor

Elżbieta Bukalska

• Maria Curie Sklodowska University, Lublin, Poland

autor

Anna Maziarczyk

• Maria Curie-Skłodowska University in Lublin, Poland

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Identyfikatory

DOI

https://doi.org/10.2478/ijme-2022-0032