The Behavior of Corporate Cash Holdings: Evidence from Saudi Arabia.

31 Pages Posted: 20 Oct 2020

See all articles by Abdulmuhsen S. Alkhalaf

Abdulmuhsen S. Alkhalaf

George Washington University - Department of Economics; Saint Mary's University, Canada - Sobey School of Business

Date Written: September 2011

Abstract

This paper investigates the behavior of corporate cash holdings across countries using publicly traded firms from the United States and Saudi Arabia. It documents that Saudi firms hold less cash than U.S. firms and tries to explain the differences in the behavior of cash holdings. It shows that Saudi firms with governmental ownership hold less cash than Saudi firms without governmental ownership. Consequently, it shows that Saudi firms are different from U.S. firms and ownership structure has a significant impact on the Saudi cash holding decisions.

Keywords: Saudi Arabia, Corporate Cash Holdings, Financial Flexibility, Financial Constraints

JEL Classification: G20, G32

Suggested Citation

S. Alkhalaf, Abdulmuhsen, The Behavior of Corporate Cash Holdings: Evidence from Saudi Arabia. (September 2011). Available at SSRN: https://ssrn.com/abstract=3685256 or http://dx.doi.org/10.2139/ssrn.3685256

Abdulmuhsen S. Alkhalaf (Contact Author)

George Washington University - Department of Economics ( email )

Washington, DC
United States

Saint Mary's University, Canada - Sobey School of Business ( email )

Halifax, Nova Scotia
Canada

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