FIRM-SPECIFIC DETERMINANTS OF CORPORATE CASH HOLDINGS: EVIDENCE FROM MALAYSIAN LISTED CONSUMER COMPANIES
DOI:
https://doi.org/10.35631/AIJBES.829056Keywords:
Corporate Cash Holdings, Current Ratio, Firm Size, Leverage, Malaysia, Return on AssetsAbstract
Examining the factors that affect the liquidity of consumer companies listed on the stock exchange in Malaysia is the primary objective of this study. It examines how factors including leverage, current ratio, firm size, and return on assets (ROA) impact a company's cash on hand. The research covers the years 2020–2025 and includes 324 consumer cyclical and non-cyclical enterprises listed in Malaysia. The final sample was 1,750 firm-year observations retrieved from LSEG Workspace after data screening and cleaning. Statistical packages used for data analysis in SPSS included descriptive statistics, multiple regression, and Pearson correlation. There is statistical significance in the regression model, according to the results. Companies with higher levels of debt tend to have lower levels of cash on hand because of the strong negative correlation between leverage and corporate cash holdings. There is a robust correlation between increased corporate cash holdings and both the current ratio and ROA. This indicates that more cash is kept by more profitable and liquid enterprises. There is a negative correlation between firm size and corporate cash holdings, suggesting that bigger companies are less likely to have considerable cash reserves. Taken together, the findings show that corporate cash holding decisions are heavily impacted by firm-specific financial features. This study contributes to the body of knowledge in corporate finance by elucidating previously unknown factors that affect the cash on hand of publicly traded consumer companies in Malaysia.
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