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Bank loan availability and corporate cash holdings of unlisted firms

Author

Listed:
  • Naiki, Eriko
  • Ogane, Yuta

Abstract

This paper examines why unlisted firms hold cash using a firm-level panel dataset of 2,580 unlisted firms in Japan between fiscal years 2000 and 2022. The major findings of this paper are as follows. First, unlisted firms hold excess cash if they cannot use bank loans. Second, these firms hold cash for precautionary motives when bank loans are unavailable. Third, there is no evidence that their cash-holding behavior is affected by bank power.

Suggested Citation

  • Naiki, Eriko & Ogane, Yuta, 2025. "Bank loan availability and corporate cash holdings of unlisted firms," Pacific-Basin Finance Journal, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:pacfin:v:93:y:2025:i:c:s0927538x25001684
    DOI: 10.1016/j.pacfin.2025.102831
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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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