Abstract:
The aim of this research is to identify factors influencing cash holding options in the Pakistani food sector in order to make appropriate recommendations. The State Bank of Pakistan collected data from 39 food companies from 2013 to 2020 for research. We apply static panel data analysis techniques to the inference result using correlation analysis, descriptive statistics, and a pooled ordinary least squares regression model to investigate specific companies. Cash flow, leverage and liquidity ratio adversely affected cash and cash equivalents; found the search. Profitability and cash and cash equivalents are strongly correlated. Finally, dividend policy and cash and cash equivalents showed little correlation. This study helped management make reasonable choices for holding cash. Food companies need to keep their cash levels at optimal levels to improve their profitability.
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