SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS
Ensuring business continuity requires maintaining financial liquidity and a certain level of cashholdings. This also applies to farms whose owners obtain funds from various sources, includingforeign capital. For this reason, the study aimed to identify sources and determine cash resourcesin farms in...
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| Format: | Article |
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Wydawnictwo SGGW - Warsaw University of Life Sciences Press
2022-12-01
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| Series: | Polityki Europejskie, Finanse i Marketing |
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| Online Access: | https://pefim.sggw.edu.pl/article/view/4746 |
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| author | Joanna Bereżnicka Justyna Franc-Dąbrowska |
| author_facet | Joanna Bereżnicka Justyna Franc-Dąbrowska |
| author_sort | Joanna Bereżnicka |
| collection | DOAJ |
| description | Ensuring business continuity requires maintaining financial liquidity and a certain level of cashholdings. This also applies to farms whose owners obtain funds from various sources, includingforeign capital. For this reason, the study aimed to identify sources and determine cash resourcesin farms in Central and Eastern European countries that are in the EU. Additionally, based ondetailed data from Polish farms, we assessed and compared the importance of cash holdings infarms characterised by a high level of financial security and those for which we identify thebankruptcy risk. Data for the research is from the Farm Accounting Data Network (FADN) databasefor 2013-2018 (for all the EU countries we consider). In the analysis touching upon bankruptcy riskin Polish farms, we used data from FADN-PL for 2010-2018. In the study, we used the panel method– weighted least squares method (WLS). We applied the dynamic approach to calculate the cashholdings. Inferences from our study indicate that budget support for farmers and sales value perfarm are the main sources and determinants of cash holdings in farms in New Member State of theEU. It should be underlined that the influence of budget support on cash holdings in Polish farmswas weaker than in other surveyed countries. Moreover, it was found that the level of indebtednesswas also an important factor that impacted cash holdings. On Polish farms, the impact of the debtlevel on cash holdings was negative, and in other countries – positive.The added value of work is identifying factors that affect cash holdings changes, so it is a dynamicapproach to cash holdings. |
| format | Article |
| id | doaj-art-8c1f87596e654606913c019700dc5145 |
| institution | Kabale University |
| issn | 2081-3430 2544-0640 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Wydawnictwo SGGW - Warsaw University of Life Sciences Press |
| record_format | Article |
| series | Polityki Europejskie, Finanse i Marketing |
| spelling | doaj-art-8c1f87596e654606913c019700dc51452025-02-03T01:55:12ZengWydawnictwo SGGW - Warsaw University of Life Sciences PressPolityki Europejskie, Finanse i Marketing2081-34302544-06402022-12-0128(77)10.22630/PEFIM.2022.28.77.11SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMSJoanna Bereżnicka0Justyna Franc-Dąbrowska1Warsaw University of Life Sciences – SGGWWarsaw University of Life Sciences – SGGWEnsuring business continuity requires maintaining financial liquidity and a certain level of cashholdings. This also applies to farms whose owners obtain funds from various sources, includingforeign capital. For this reason, the study aimed to identify sources and determine cash resourcesin farms in Central and Eastern European countries that are in the EU. Additionally, based ondetailed data from Polish farms, we assessed and compared the importance of cash holdings infarms characterised by a high level of financial security and those for which we identify thebankruptcy risk. Data for the research is from the Farm Accounting Data Network (FADN) databasefor 2013-2018 (for all the EU countries we consider). In the analysis touching upon bankruptcy riskin Polish farms, we used data from FADN-PL for 2010-2018. In the study, we used the panel method– weighted least squares method (WLS). We applied the dynamic approach to calculate the cashholdings. Inferences from our study indicate that budget support for farmers and sales value perfarm are the main sources and determinants of cash holdings in farms in New Member State of theEU. It should be underlined that the influence of budget support on cash holdings in Polish farmswas weaker than in other surveyed countries. Moreover, it was found that the level of indebtednesswas also an important factor that impacted cash holdings. On Polish farms, the impact of the debtlevel on cash holdings was negative, and in other countries – positive.The added value of work is identifying factors that affect cash holdings changes, so it is a dynamicapproach to cash holdings.https://pefim.sggw.edu.pl/article/view/4746cash holdingspanel regressionfarmsdeveloping country EU |
| spellingShingle | Joanna Bereżnicka Justyna Franc-Dąbrowska SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS Polityki Europejskie, Finanse i Marketing cash holdings panel regression farms developing country EU |
| title | SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS |
| title_full | SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS |
| title_fullStr | SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS |
| title_full_unstemmed | SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS |
| title_short | SOURCES AND DETERMINANTS OF CASH HOLDINGS IN THE AGRICULTURE OF CENTRAL AND EASTERN EUROPE COUNTRIES AND THE PERSPECTIVE OF THE FINANCIAL SECURITY OF POLISH FARMS |
| title_sort | sources and determinants of cash holdings in the agriculture of central and eastern europe countries and the perspective of the financial security of polish farms |
| topic | cash holdings panel regression farms developing country EU |
| url | https://pefim.sggw.edu.pl/article/view/4746 |
| work_keys_str_mv | AT joannabereznicka sourcesanddeterminantsofcashholdingsintheagricultureofcentralandeasterneuropecountriesandtheperspectiveofthefinancialsecurityofpolishfarms AT justynafrancdabrowska sourcesanddeterminantsofcashholdingsintheagricultureofcentralandeasterneuropecountriesandtheperspectiveofthefinancialsecurityofpolishfarms |