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Table 1 Definition of variables and determinants factors of cash holdings

From: Predicting cash holdings using supervised machine learning algorithms

Explanatory variables

Definitions

Studies

Source

CASH

The ratio of cash and cash equivalents to the total assets

 

Thomson Reuters

DIV

The ratio of total dividend payments to the total assets

Bigelli and Sánchez-Vidal (2012), Bhuiyan and Hooks (2019), Song and Lee (2012), Wu et al. (2021)

As Above

SG

Annual change in sales growth (%)

Bigelli and Sánchez-Vidal (2012), Boubakri et al. (2013), Kim et al. (2021), Song and Lee (2012)

As Above

SIZE

Natural logarithm of total assets in current USD

Bigelli and Sánchez-Vidal (2012), Boubakri et al. (2013), Drobetz and Grüninger (2007), García-Teruel and Martínez-Solano (2008), Lozano and Yaman (2020), Ozkan and Ozkan (2004)

As Above

CAPEX

The ratio of capital expenditure to the total assets

Boubakri et al. (2013), Diaw (2021), Guney et al. (2007), Uyar and Kuzey (2014)

As Above

CF

The ratio of the sum of pre-tax income plus depreciation to the total assets

Boubakri et al. (2013), Diaw (2021), Ferreira and Vilela (2004) Guney et al. (2007), Lozano and Yaman (2020), Uyar and Kuzey 2014), Wu et al. (2021)

As Above

IE

The ratio of interest expense to the total assets

Schauten et al. (2011)

As Above

NWC

The ratio of non-cash working capital to the total assets

Bigelli and Sánchez-Vidal (2012), Boubakri et al. (2013), Diaw (2021), Lozano and Yaman(2020)

As Above

TANG

The ratio of net fixed assets to the total assets

Bhuiyan and Hooks (2019), Drobetz and Grüninger (2007), Uyar and Kuzey (2014)

As Above

STD

The ratio of short-term debt to the total assets

Benkraiem et al. (2020), Lozano and Yaman(2020)

As Above

ROA

The ratio of net income to the total assets

Batuman et al. (2021), Bhuiyan and Hooks (2019), Cai et al. (2016), Cambrea et al. (2021), Sarfriz et al. (2020)

As Above

ROE

The ratio of net income to the total equity

Manoel et al. (2018)

As Above

AR

The ratio of account receivable to the total assets

Mohammadi et al. (2018), Wu et al. (2012)

As Above

AP

The ratio of accounts payable to the total assets

Chen et al. (2014), Wu et al. (2012)

As Above

CR

The ratio of current assets to current liabilities

Manoel et al. (2018), Ozkan (2001)

As Above

EPS

Earnings per share

Sarfriz et al. (2020)

As Above

ROIC

The ratio of net operating profit after tax to the total assets

Sarfriz et al. (2020)

As Above

NET MARGIN

The ratio of net income to the net sales

Angelovska and Valentinčič (2019)

As Above

PRETAX MARGIN

The ratio of profit before tax to the net sales

Mihai et al. (2018)

As Above

AGE

The foundation year of the firm

Bigelli and Sánchez-Vidal (2012), Cai et al. (2016), Gao et al. (2013), Manoel et al. (2018), Wu et al. (2021)

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WUI_TURKEY

Annual average of quarterly data of World Uncertainty Index

 

https://worlduncertaintyindex.com/