Cash Management in the Travel and Leisure Sector: Evidence From the United Kingdom

Posted: 10 Oct 2018 Last revised: 17 Apr 2019

See all articles by Wisal Ahmad

Wisal Ahmad

Independent; Abdul wali khan university mardan pakistan

Cahit Adaoglu

Eastern Mediterranean University - Department of Banking and Finance

Date Written: June 18, 2018

Abstract

The study finds that growth opportunities, cash flow, and cash flow volatility affect cash holdings positively, while and leisure (TL) sector of the United Kingdom (UK) between 2005 and 2016. The study finds that growth opportunities, cash flow, and cash flow volatility affect cash holdings positively, while size, leverage, liquidity, asset intangibility and dividend payments affect negatively. Companies growth opportunities, cash flow, and cash flow volatility affect cash holdings positively, while size, leverage, liquidity, asset intangibility and dividend payments affect negatively. Companies operating in the airlines sub-sector hold more cash, while companies in the hotels and restau-size, leverage, liquidity, asset intangibility and dividend payments affect negatively. Companies operating in the airlines sub-sector hold more cash, while companies in the hotels and restaurants and bars sub-sectors hold less cash than the reference sub-sector of travel and tourism. Operating in the airlines sub-sector hold more cash, while companies in the hotels and restaurants and bars sub-sectors hold less cash than the reference sub-sector of travel and tourism. Except for the free cash flow model, the trade-off and pecking order models of cash holdings are rants and bars sub-sectors hold less cash than the reference sub-sector of travel and tourism. Except for the free cash flow model, the trade-off and pecking order models of cash holdings are empirically supported for the TL sector.

Keywords: Cash; Determinants; Hospitality; Travel and Leisure; Tourism; United Kingdom

JEL Classification: Z33; Z31; L83; L8; G32; G3

Suggested Citation

Ahmad, Wisal and Adaoglu, Cahit, Cash Management in the Travel and Leisure Sector: Evidence From the United Kingdom (June 18, 2018). Applied Economics Letters, 26(7), 618–621. DOI: 10.1080/13504851.2018.1488050. Available at SSRN: https://ssrn.com/abstract=3250640

Wisal Ahmad (Contact Author)

Independent ( email )

No Address Available

Abdul wali khan university mardan pakistan ( email )

IBL, AWKUM
MARDAN, 25000
Pakistan

Cahit Adaoglu

Eastern Mediterranean University - Department of Banking and Finance ( email )

Famagusta North Cyprus, via Mersin-10
Turkey
+903926302116 (Phone)

HOME PAGE: http://www.emu.edu.tr

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