Large firms hoard cash while small businesses struggle to survive
The study looked at how managing a company's working capital affects how much cash it holds. They studied 62 Jordanian industrial firms over 11 years and found that large firms tend to hold more cash than small firms. The research showed that when a company has other ways to access cash quickly, they tend to keep less cash on hand. They also found that both the size of the company and its cash flow strongly influence how much cash it holds.