The Financial Determinants of Firms Cash holding: Evidence from Different Economic sectors of Pakistan

The study aims to analyze the financial determinants of firms cash holdings in different sectors of economy of Pakistan such as Textile, Manufacturing, Energy, Information & Communication, Chemical and Food. The study analyses a sample of 305 listed companies on the Pakistan Stock Exchange (PSX) from 2017 to 2022 and provides a comparative sectoral analysis using three regression models, namely: Ordinary least square (OLS), fixed effects, and random effects models, based on trade-off theory and pecking order theory. The results show sector-specific relationships: in the textile sector, cash holdings are positively related with debt ratio, liquidity, and firm size but