The Impact of Uncertainty Spillover on Cash Holdings Behavior of Turkish Firms


  • Omer Faruk Tan Marmara University, Turkey
  • Cagri Aksoy-Hazir Marmara University, Turkey


Cash holding, World uncertainty spillovers index, Turkey, Panel data


This paper examines the impact of the World Uncertainty Spillover Index-United States (WUSI-USA) on cash holdings policy of 211 Turkish firms between 2005 and 2019, applying unbalanced panel data regression strategy. According to the findings, a positive relationship exists between uncertainty spillovers and cash holdings. When faced with uncertainty, firms prefer to restrain cash reserves for a precautionary motive. From the real options perspective, firms delay or postpone their investments under uncertain conditions. In addition, dividend payments, cash flow, tangibility, non-cash working capital, short-term debt, and capital expenditure are major determinants of cash holdings. Finally, under alternative models, we find robust results.


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How to Cite

Tan, O. F., & Aksoy-Hazir, C. (2022). The Impact of Uncertainty Spillover on Cash Holdings Behavior of Turkish Firms. International Journal of Economics, Management and Accounting, 30(2), 481–503. Retrieved from