Canada: Selected Issues

February 3, 2014

Preview Citation

Format: Chicago

Canada: Selected Issues, (USA: International Monetary Fund, 2014) accessed September 19, 2024

Summary

This Selected Issues paper looks at the factors behind the accumulation of cash positions by Canadian nonfinancial corporations. Focusing only on listed firms and running a model of changes in cash holdings suggest that greater macroeconomic and business uncertainty may have induced firms to raise the cash buffer at their disposal over the last decade. This is especially the case for firms in the energy and mining sector, which account for the majority of cash accumulation in the sample used in current analysis. The analysis also shows that firms’ high cash balances are typically associated with higher levels of capital expenditure, which bodes well for the acceleration of business investment in the near future.

Subject: Capital spending, Commodities, Currencies, Economic sectors, Energy sector, Expenditure, Money, Natural gas sector, Oil

Keywords: Canada, Capital spending, Cash holding, Company acquisition, CR, Currencies, Energy production, Energy sector, Financial firm, Firm, Firm size, Firms in sector, Global, Holding, ISCR, Natural gas sector, North America, Oil

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2014/028
Stock No:

1CANEA2014002
ISBN:

9781616355999
ISSN:

1934-7685

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