Innovation in Corporate Cash Holding & Management: An Empirical Investigation

Abstract

In this article, we will study the innovation in corporate cash holding and management. In this article, we will use panel data models to understand the determinants of cash holdings of the various corporate organizations in emerging countries. The article will try to solve the corporate cash holding and management issues that have become a major concern in the present time. Industrial countries firms have been holding rising amounts of liquid assets, in the form of cash since q 1990 when globalization was started. This has increased the corporate savings in the whole world making the business sector a net lender to the rest of the economy. There is proof that the growth in corporate savings has been used to accumulate cash on a steady basis. At the aggregate level, we observe that non-financial corporate saving plays a crucial role for current account dynamics, contributing the lion share to the level and change in current account surpluses, particularly among advanced economies. Drives of the corporate liquidity demand help to know the important insights into drives for the current account dynamics.

Keywords: Innovation, corporate, cash holding, management, and finance