Impact of Cash Holding on Profitability in Auto Corporate Sector of Pakistan for the Period 2013-2017

Abstract

Abstract:
In this current era of Business World, where the world has become global
village because of the inventions of latest techniques and introduction of
latest trend in Information technologies brings the world into new stage.
Where the world without the capital market and imperfections i.e. frictions
in information and no difference in between the cost of internal and the
external funds and the substitutions become possible (Nadiri, 1969).
Therefore, the existence of imperfections market in this competitive
environment is not possible as well as the imperfections of the market does
not allow any internal and external funds thus the cost of the external
financial trends has been depending on how the organizations are tending
towards the imperfections of the ongoing market imperfections. Thus the
external financial impact has also been related to the specifications of the
characteristics of the organizational and the corporate quality of the
government rules and policies (Meyers, 1977). The impact of cash holding
has been definite on Profitability in Auto Corporate Sector of Pakistan. It
identifies the kind of relationship of corporate CHs in auto industry
profitability. Therefore, the severe information and the agencies are having

1M.Phil. Scholar, Department of Commerce, University of Balochistan, Quetta Pakistan
2Dr. Muhammad Shafiq, Lecturer, Department of Commerce, university of Balochistan,
Quetta Pakistan
3Dr. Ruqia Rehman, Assistant Professor, Sttistics Department, University of Balochistan,
Quetta Pakistan25
the problems that may limit the organizational access to the external
financial and curtail the internal funds. So, the profitability opportunity for
investment at the times has become inevitable and organizational firms and
their funds availability allows to keep investing in planned investment by
becoming the crucial for such financial organizations. The present study
purposes at fulfilling the gap between corporate CHs, its factors and their
consequences on profitability on Auto Sector of Pakistan (Kesner, 1986).