TY - GEN
T1 - Conceptual Framework for Lending Money Outside Business Groups: Evidence from Poland
AU - Białek-Jaworska, Anna
AU - Gadowska-dos Santos, Dominika
AU - Faff, Robert
PY - 2019/5/8
Y1 - 2019/5/8
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85125320082&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-15581-0_7
DO - 10.1007/978-3-030-15581-0_7
M3 - Conference contribution
AN - SCOPUS:85125320082
SN - 9783030155803
SN - 978-3-030-15583-4
T3 - Springer Proceedings in Business and Economics
SP - 71
EP - 80
BT - Contemporary Trends and Challenges in Finance - Proceedings from the 4th Wroclaw International Conference in Finance
A2 - Jajuga, Krzysztof
A2 - Locarek-Junge, Hermann
A2 - Orlowski, Lucjan T.
A2 - Staehr, Karsten
PB - Springer Science and Business Media B.V.
T2 - 4th Wroclaw International Conference in Finance, 2018
Y2 - 26 September 2018 through 27 September 2018
ER -