On the Determinants of SMEs Cash Holding: Evidence from Spain

García-Teruel, Pedro J.; Martínez-Solano, Pedro

doi:10.2139/ssrn.695163

Abstract

References (49)

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On the Determinants of SMEs Cash Holding: Evidence from Spain

University of Murcia

December 2004

Abstract:
This work analyses the explanatory factors of the cash holdings of a sample of 860 small and medium-sized firms from Spain during the period 1997-2001. We find that the firms pursue a target cash level to which they attempt to converge, and that this level is higher for firms with larger cash flows, for those that are more highly leveraged and for those that have more short-term debt. In contrast, the cash level falls with the use of bank debt and in the presence of substitutes for cash.

Number of Pages in PDF File: 38

Keywords: Cash, Liquidity, SMEs

JEL Classification: G31, G32

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Date posted: April 26, 2005

Suggested Citation

García-Teruel, Pedro J. and Martínez-Solano, Pedro, On the Determinants of SMEs Cash Holding: Evidence from Spain (December 2004). Available at SSRN: http://ssrn.com/abstract=695163 or http://dx.doi.org/10.2139/ssrn.695163

Contact Information

Pedro J. García-Teruel University of Murcia ( email ) Department of Management and Finance Murcia, 30100 Spain 34 968367828 (Phone) 34 968367537 (Fax) HOME PAGE: http://webs.um.es/pjteruel/miwiki/doku.php
Pedro Martínez-Solano (Contact Author) University of Murcia ( email ) Dpt. Management and Finance Murcia, Murcia 30100 Spain 34 868 883 747 (Phone) 34 868 887 537 (Fax) HOME PAGE: http://webs.um.es/pmsolano

Abstract

References (49)

On the Determinants of SMEs Cash Holding: Evidence from Spain

Pedro J. García-Teruel

Pedro Martínez-Solano

Date posted: April 26, 2005

Suggested Citation

Contact Information

Pedro J. García-Teruel

Pedro Martínez-Solano (Contact Author)