The topic on cash holding has attracted strong debate in the field of financial management for the past half\ncentury. A number of researchers studied the topic corporate cash holding and its determinants in the past in\ndeveloped economies while a little attention is given to the corporate cash holdings of developing economies. The\nobjective of the study is to identify and measure the relationship of firm size, profitability, net working capital and\nleverage and their effect on corporate cash holdings. A sample of 30 textile firms of Pakistan listed on Karachi\nStock Exchange (KSE) was selected for the study, for the reason of examining their relationship. Secondary data\nfor the period 2006-2013 was selected for the study. Variance Inflation Test (VIF) was used to check the problem\nof multi collinearity. Multiple regression models were used to conduct the results. Results calculated by regression\nmodel show consistency with the literature available. Profitability (ROA) and firm size (FS) show a positive and\nsignificant relation with cash holding. However negative and significant relationship was found between net working\ncapital (NWC) and leverage (LEV) with cash holding.
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