Is saving vital? Evidence from the financial crisis

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TEKİN H., POLAT A. Y.

ECONOMICS AND BUSINESS LETTERS, cilt.9, sa.2, ss.124-134, 2020 (ESCI)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 9 Sayı: 2
  • Basım Tarihi: 2020
  • Doi Numarası: 10.17811/ebl.9.2.2020.124-134
  • Dergi Adı: ECONOMICS AND BUSINESS LETTERS
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, Business Source Elite, Business Source Premier, EconLit, DIALNET
  • Sayfa Sayıları: ss.124-134
  • Anahtar Kelimeler: adjustment speed, eurozone debt crisis, financial constraints, global financial crisis, market regulations, CASH HOLDINGS, ADJUSTMENT
  • Abdullah Gül Üniversitesi Adresli: Evet

Özet

We use a sample of 8,561 firm-years from the highly regulated Main Market (MAIN) and relatively unregulated Alternative Investment Market (AIM) in the United Kingdom to analyse the impact of financial restrictions on optimal cash holdings in the context of financial crises. Employing system generalised methods of moments, we find that AIM firms have a faster adjustment speed of cash as confirmed by precautionary and transaction motives over 2002-2017. However, AIM firms decrease (increase) their adjustment speed of cash more than MAIN firms during (after) the financial crises.