Periódico: Tourism and Hospitality International Journal
Fonte: Tourism and Hospitality International Journal ; Vol. 1 No. 1 (2013): September 2013 [1st Edition]; 95-136
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Resumo: This study analyzes the determinants of cash holdings for the accommodation industry in South European countries (Spain, Greece, Italy and Portugal) using a sample of 5964 firms during the period 2003-2011. A fixed-effects panel data model revealed that larger companies, higher leveraged, where most debt is short-term and that maintain better relationships with financial institutions exhibit lower cash to assets ratios. Liquid assets substitutes, capital expenditures and asset tangibility also have a negative effect on cash levels. As expected, cash holdings are positively influenced by cash-flow and cash-flow volatility. The results reveal the negative and significant impact of the 2008 financial crisis on cash holdings in the sector, which at the end of 2011 had not yet returned to pre-crisis levels. Empirical results reject the generalized argument put forward, over more than a decade, to explain high cash holdings and its tendency to rise until the crisis, emphasizing the little importance of the precautionary motive as an incentive to accumulate cash.
