Cash Holding as a Risk Management Approach through the Lense of Institutional Entrepreneurship: Evidence from Financial Sector of Pakistan

Authors

  • Ali Raza Elahi Assistant Professor, Department of Commerce and Finance, GC University, Lahore, Punjab, Pakistan
  • Safyan Majid Lecturer, Department of Commerce and Finance, GC University, Lahore, Punjab, Pakistan
  • Waqas Khan Ph. D Scholar, Department of Business and Management Sciences, Superior University, Lahore, Punjab, Pakistan

Keywords:

Cash Holding, Generalized Method of Moments, Hedging, Investment Opportunities, Performance Kit, Underinvestment Problems

Abstract

The research is investigates the effect of hedging on cash holding of firm by using appropriate econometric technique. The examination is expected to see in the case of cash holding as well as hedging can be viewed as alternate tool for management of risk with choice of investment opportunities. A deductive approach is embraced to look at whether holding of cash as well as hedging supporting are seen as substitutive hazard management devices. In addition to execute quantitative approach and study used secondary data of public & private sector banks of Pakistan. The data was analyzed by used of specialty of STAT-12. Results revealed that cash holding reduced the risk of financial sector of Pakistan and worked as a risk management tool in lieu of hedging with considerable investment opportunities with removing underinvestment problems through the Lense of entrepreneurs. This study is provide the preference to financial sector of Pakistan to maintain level of cash holding of firms as well as used hedging in presence of cash holding. The model will also provide the opportunity of new investment that reduces under-investment problem issues then result is shape of risk management.

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Published

2022-06-30

Details

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    PDF Downloads: 58

How to Cite

Raza Elahi, A., Majid, S., & Khan, W. (2022). Cash Holding as a Risk Management Approach through the Lense of Institutional Entrepreneurship: Evidence from Financial Sector of Pakistan. Pakistan Social Sciences Review, 6(2), 410–427. Retrieved from https://ojs.pssr.org.pk/journal/article/view/146