The role of cash in corporate financial management – Where are petty cash holdings high?
Our article attempts to find an answer to how the cash requirement of the national economy is distributed among the largest cash-using sectors, i.e. corporations and households, and to what extent individual sections of the corporate sector contribute to the sector’s cash demand. The analysis has been made possible by the corporate data sources that have recently become available to the central bank’s statistical service. The data confirm the results of earlier surveys on the correlation between cash holdings and other corporate characteristics, while simultaneously providing a more refined picture of the developments over time of cash-holding. Accordingly, until the mid-2000s the corporate sector held a growing portion of the cash in circulation; firms’ cash holdings constituted an increasing portion of their funds, assets and sales revenues. From 2006, the process reversed, and from this moment on growth of cash in circulation has exclusively taken place in the household sector. New data available also allow a revision of the earlier statistical estimates regarding the holding of cash. The results presented in this article will be published in the financial account statistics in January 2010.
When requesting a correction, please mention this item's handle: RePEc:mnb:bullet:v:4:y:2009:i:4:p:24-30. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maja Bajcsy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.