Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2021, No. 1, Article 1, Year of publication: 12, March, 2021
Cash Management Factors


Kristina Mijić, PhD*

*PhD Associate Professor, University in Novi Sad, Faculty of Economics Subotica, Department of Finance and Accountancy



The paper conducts a descriptive analysis of cash management, as well as the factors that determine the movement of cash. The first part of the paper provides a theoretical overview of the matter of cash and an analysis of the factors that affect the amount of cash held by the company to settle due liabilities and investments in business activities. In the second part of the paper, a research was conducted related to the descriptive analysis of cash management and the identification of factors that have a significant effect on cash holding. The research is based on a sample of 578 observations of companies, ie 289 financial reports of companies listed on the Banja Luka Stock Exchange in the period 2018-2019. The results of the research indicate that companies on average hold cash in the amount of 4% in relation to total assets. On the other hand, the results of the research indicate that the amount of cash is primarily influenced by the size of the company and indebtedness. The size of the company has a negative effect on the matter of holding cash, and also companies that

Keywords: cash and cash equivalents, liquidity

DOI: 10.7251/FIN2101003M

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