Conceptual Framework for Lending Money Outside Business Groups: Evidence from Poland

Anna Białek-Jaworska*, Dominika Gadowska-dos Santos, Robert Faff

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

1 Citation (Scopus)


This paper builds a framework for the study of the provision of loans by non-financial companies outside business groups. This framework aims to show the role of cash holdings in providing loans by non-financial companies and constitutes the background for future research of this phenomenon. We provide evidence of the use of cash holdings for loans provision outside business group on the basis of Polish case. In this purpose, we apply the General Method of Moments (GMM) approach. Our findings confirm, that non-financial private companies provide loans outside the business groups with the use of cash holdings retrieved from bank loans and cash flows. We contribute to the literature by indicating that in addition to the common use of cash holdings for financial flexibility and the internal capital market created inside business groups—enterprises’ access to finance in transition economies could be also improved by loans provided by non-financial companies with the use of cash holdings.

Original languageEnglish
Title of host publicationContemporary Trends and Challenges in Finance - Proceedings from the 4th Wroclaw International Conference in Finance
EditorsKrzysztof Jajuga, Hermann Locarek-Junge, Lucjan T. Orlowski, Karsten Staehr
PublisherSpringer Science and Business Media B.V.
Number of pages10
ISBN (Electronic)978-3-030-15581-0
ISBN (Print)9783030155803, 978-3-030-15583-4
Publication statusE-pub ahead of print - 8 May 2019
Externally publishedYes
Event4th Wroclaw International Conference in Finance, 2018 - Wroclaw, Poland
Duration: 26 Sept 201827 Sept 2018

Publication series

NameSpringer Proceedings in Business and Economics
ISSN (Print)2198-7246
ISSN (Electronic)2198-7254


Conference4th Wroclaw International Conference in Finance, 2018


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