Economics and Business Review

ISSN 2392-1641
e-ISSN 2450-0097

Poznań University of Economics - Poland

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Volume 3 (17) Number 4 pp. 87-110

Anna Białek-Jaworska

University of Warsaw, Faculty of Economic Sciences

Do Polish non-financial listed companies hold cash to lend money to other firms?

Abstract:

This paper aims to identify factors influencing Polish non-financial corporate lending to other entities starting from the recognition motives and sources of cash holdings. The research analyzed panel data of 754 non-financial companies listed on the Warsaw Stock Exchange with use of tobit panel and generalized least squares method. Cash holding is motivated by a transaction motive, a protection against risk by the use of derivatives, investment opportunities and lending money. Non-financial companies try to step into the shoes of financial institutions by lending using money gained from their cash flow, especially when they have long-term investments.

pub/2017_4_87.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume17/issue4/2017_4_87.pdf
Keywords: cash holdings, lending money, loans, non-financial companies, cash flow.

DOI: 10.18559/ebr.2017.4.6

For citation:

MLA Białek-Jaworska, Anna. "Do Polish non-financial listed companies hold cash to lend money to other firms?." Economics and Business Review EBR 17.4 (2017): 87-110. DOI: 10.18559/ebr.2017.4.6
APA Białek-Jaworska, A. (2017). Do Polish non-financial listed companies hold cash to lend money to other firms?. Economics and Business Review EBR 17(4), 87-110 DOI: 10.18559/ebr.2017.4.6
ISO 690 BIAłEK-JAWORSKA, Anna. Do Polish non-financial listed companies hold cash to lend money to other firms?. Economics and Business Review EBR, 2017, 17.4: 87-110. DOI: 10.18559/ebr.2017.4.6