Corporate Thrift and Economic Growth: A Comparative Study of Developing and Developed Countries

Abstract

This study aims to investigate the relation between corporate saving and economic growth during the period from 1995 to 2006 in 7 developing countries and 16 developed countries. The results show that corporate savings generally add to the economic growth of developing countries regardless of legal origins. On the contrary, corporate savings generally do not contribute to the economic growth of developed countries. Developed countries with common law and Scandinavian civil law legal origins particularly see the negative relation between corporate saving and economic growth, while countries with other legal origins observe no such relation.

The Impact of Board Gender and Multiple Directorship on Cash Holdings: Evidence from Jordan

“…However, the real-life imperfections in the markets require the firms to maintain a buffer to cover the cash deficits due to the operating needs of the firm. [8] argues that cash holding plays a significant role in the economic growth of emerging markets, while according to [9], cash is a readily available investment for a firm. In addition, [10] stressed that firms must hold cash to ensure the timing of cash movements and overall positive cash flow.…”