Search results

The purpose of the study is to examine factors influencing cash holding of firms during periods of crisis. In recent times, the level of cash holdings in firms has seen a steady rise across industries for diverse reasons. However, the need to study cash holding becomes even more compelling during geopolitical instability as it causes firms to hold greater cash reserves for precautionary reasons.

This paper systematically reviews literature from 1984 to 2024 by organising the findings thematically based on the relationship between corporate cash holdings (CCH) and firm performance in times of war. The paper used 47 research articles from the Scopus database and Google Scholar. Literature connected to CCH, firm performance and war times was explored. The title and abstract analysis were conducted using VOSviewer software. As a result, the predetermined body of literature was visualised, and six theme-based clusters were identified.

This paper systematically reviews empirical studies, categorising them into six theme-based groups. These clusters encompass CCH and Determinants, Optimal Cash Holding Levels, Cash Holding Adjustment Speed and Theory, Cash Holding and Firm Value, Cash Holding and Firm Performance, Cash Holding in the Context of the Ukraine War and the adaptive financial strategies of firms in response to economic conditions by using cash holding as a hedging instrument. Inflation prompts adjustments in cash-holding strategies at a macro level. During crises, lower interest rates lead to increased cash holdings. Various motives influence firms’ cash-to-assets ratios. According to the pecking order theory, geopolitical risk negatively affects cash holdings. Exposure to pandemics prompts an increase in cash reserves. War shocks have a profound impact on economies, markets and stability; hence, geographic diversification can reduce the need for precautionary cash. In times of uncertainty, the financial stress of firms can get elevated, and therefore, having a well-diversified geographical portfolio of a firm’s investments can aid in meeting any financially distressing situation.

The literature on CCH has been phenomenal. This paper attempts to structure the issues surrounding cash holding and firm performance in wartime, like the Ukraine war, using the VOSviewer software. This study endeavours to highlight the reasons for cash holding during crises and understand how cash holding affects firm performance. Finally, this paper also tries to comprehend whether cash holding helps as a hedging instrument in times of war.

The dynamic and evolving nature of the market calls for attention to digital platform firms' survival strategies, building agility for persistence in a continuously changing business environment. In India, the government’s adoption of the Digital Policy is one such change in the business environment for the firms that impact almost all sectors. Such policies cause a disruption wherein digital platform firms must be agile and create a strategic response that will endure any changes. The present study attempts to gain insight into the competitive strategies adopted by the digital platform firms of the consumer durables industry in India, which are implemented to facilitate their growth.

The entire study is conducted in two phases. Phase one includes identifying strategies sampled digital platform firms adopted in response to the digitalization policy, and the second phase evaluates the significance of the adopted plans to persist.

While clubbing the 42 strategic responses to a few aggregate dimensions, the study found four types of responses adopted by the digital platform firms in the consumer durable industry to persist in the market. Using a two-step system, the Generalized Method of Moments (GMM) approach, the study found that all four dimensions are statistically significant, positively impacting these firms' profitability.

The study contributes to the knowledge base of strategic responses to persist for the incumbent platform firms in a dynamic business environment.

The study answers the pertinent research question of how such strategic decisions may be informed in favor of profitability.

Entrepreneurship represents a complex decision-making process capable of influencing the conditions of a socio-economic system. For this reason, stimulating entrepreneurship is a topic that has always fascinated scholars and attracted the attention of public policy makers. This study, from the perspective of the theory of planned behaviour (TPB), aims to contribute to the analysis of entrepreneurial intention (EI) in university students. Factors such as entrepreneurship education (EE), mediation of personal attitude (PA), perceived behavioural control (PBC), EI, regulatory support (RS) and opportunity recognition (OR) for university students.

Research data was collected using a questionnaire, and a cross-sectional sample was selected from senior business and engineering students who are most likely to participate in entrepreneurial activities. The survey was conducted in the Delhi NCR region. 240 students were interviewed. Partial least square structural equation modelling using SmartPLS-4 was used to test the explanatory and predictive power of the proposed model.

The results of this study offer interesting contributions to the academic debate. First, EE has a significant impact on PA, PBC and entrepreneurial intentionality. Second, PBC, recognition of opportunities and EI have a significant impact on entrepreneurial education. Finally, PA and PBC significantly mediate the “entrepreneurial education – entrepreneurial intention” relationship.

Interesting elements of originality are offered by this study. First, entrepreneurship is studied as a decision-making process influenced by intentions and not behaviours. Second, the authors limited the efforts to unraveling the effect of the five variables on the formation of EI. Finally, the large size of the sample allows the authors to obtain significant results, directing future studies to other territorial contexts. Additionally, incorporating some control variables, such as gender and family background, would explore the relationship between the model variables more meaningfully.