Exploring cash and intangible asset strategies of non-financial firms across different scenarios

Abstract

Effective liquidity management is essential for financial stability and adaptability in non- financial firms. This paper examines how companies balance cash reserves and investment opportunities, analysing industry characteristics, capital intensity, and the cash conversion cycle. Findings reveal that technology firms hold higher cash reserves due to revenue uncertainty, while manufacturing firms rely more on external financing. Regression analysis highlights revenue growth and R&D intensity as key drivers of cash holdings, while leverage and capital intensity have a lesser impact. These insights provide practical guidance for firms optimizing liquidity strategies in a dynamic economic landscape.

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