Determinants and consequences of cash holdings of Philippine publicly-listed banks from 2004-2008

Date of Publication

2010

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Rene B. Hapitan

Defense Panel Member

Junette A.Perez
Tomas Tiu
Jemelyn Go

Abstract/Summary

This study focuses on the determinants and consequences of cash holdings. Financial statements of ten Philippine publicly-listed banks for the period of 2004-2008 were used as sample. Several determinants such as cash, cash flow, variance of cash flow, total debt, long term debt, size, liquidity, capital expenditures, Tobin's Q, and interest rate were gathered and determined for each of the banks. After performing the Arellano and Bover dynamic panel data estimation model, results show that only size, liquidity, and interest rate affect bank's cash holdings. In addition, it was shown in the problit model that cash holdings do not affect a bank's performance. Therefore, neither managerial opportunism theory nor transaction cost theory are relevant for this particular study.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21191

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

iv, 53 leaves : illustrations

Keywords

Banks and banking--Philippines; Cash flow--Philippines

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