Souvik Banerjee
Management Development Institute Murshidabad, India
souvik.2005@gmail.com
Abstract:
Foreign institutions are playing a major role in a number of emerging market economies these days. In India, their
investment acts as one of the cornerstones of market movement. In this research paper, it is explored whether cash holding
levels have a bearing on the foreign institutional holding in large manufacturing companies in India. Various factors like size,
profitability, growth opportunity, lifecycle, prior dividend payout, leverage,and so forth are controlled. Data is analyzed for
a period of 16 years starting from the financial year 2000–01. The analysis is done in the form of panel data. The findings of
the empirical analysis show that foreign institutions have a higher holding in companies with higher cash holding and lower
leverage. Foreign institutions have a higher holding in private sector companies than public sector companies.
Keywords : Foreign Institutions, Manufacturing Companies, Cash Holding
