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Determinants of corporate cash holdings in South Africa

Author

Listed:
  • Ewa Karwowski
  • Hanna Szymborska
  • Keagile Lesame
  • Tlhologelo Thoka

Abstract

Globally, corporate cash holdings have risen since the 1980s. In South Africa, some commentators have accused corporations of engaging in an 'investment strike', while others see corporate liquidity as a precaution against systemic uncertainty. We use the unique South African Revenue Service/National Treasury firm-level dataset to scrutinize corporate liquidity, using panel analysis. Relative to GDP, corporate cash and liquidity holdings have not increased between 2010 and 2017. However, corporate cash is high in international comparison and has grown at the firm level.

Suggested Citation

  • Ewa Karwowski & Hanna Szymborska & Keagile Lesame & Tlhologelo Thoka, 2022. "Determinants of corporate cash holdings in South Africa," WIDER Working Paper Series wp-2022-85, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-85
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    References listed on IDEAS

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