*Department of Accounting and Finance, Wollo University, Dessie, Ethiopia
Online published on 5 May, 2016.
This study is aimed to investigate the firms’ specific and macroeconomic variables of cash holdings of manufacturing share companies in Ethiopia over the period from 2009 to 2014 inclusive. In doing so, a multiple linear regression model is used for 15 randomly selected manufacturing share companies of Ethiopia. The findings of the study revealed that growth opportunity, cash flows and firm size are statistically significant and positively affect the cash holding of the manufacturing share companies. On the other hand, net working capital, capital expenditure and inflation have negative and statistically significant impact on cash holdings. Besides this, the leverage, profitability and real gross domestic product are statistically insignificant variables of cash holding decision for Ethiopian manufacturing share companies.
determinants, cash holding, manufacturing share companies, Ethiopia
