DETERMINANTS OF CASH HOLDINGS: EVIDENCE FROM BALKAN COUNTRIES

The purpose of this paper is to identify the determinants and indicate their impact on company’s cash holdings in wholesale industry ten Balkan countries. Effective management key any healthy smooth business operation, so comprehending analyzing relationship between internal vital. sample used for work included 106 companies, whose operations were studied over a four-year period (2014–2017), using panel data model with fixed effects. obtained results showed that three five observed variables (size, leverage, non-cash liquid assets, profitability asset tangibility) have statistically significant holdings. It was determined larger companies generally hold less cash, primarily due more favorable external sources financing, thus, financially stronger Balkans are likely cash. Only by practicing adequate inventory receivables collection policy can ensure effective working capital, leading fact profitable realized profit increase liquidity as well stimulate growth development. research revealed that, order achieve an optimal level, countries tend constantly balance liquidity. This contributes improving also offers assistance establishing maintaining reduce potential risk financial distress enable them take advantage all investment alternatives maximize profit. All stakeholders will benefit from developed along findings paper, especially when making decisions related overall efficiency.