Impact of Banking Relationships and Ownership Concentration on Corporate Cash Holdings In Indian Fmcg Companies

Abstract

To guarantee stability, growth, and resilience for businesses operating within this sector— which is marked by quick changes in customer preferences, fierce rivalry, and changing regulatory frameworks, strategic financial management methods are required. In light of this, it becomes imperative to look into the impact of ownership concentration and banking ties on company cash holdings. When it comes on corporate cash holding then a company's corporate cash holdings make up a sizable amount of its assets and are used for a variety of objectives, such as managing liquidity, pursuing investment possibilities, and providing financial flexibility. The determinants of corporate cash holdings can vary greatly in the context of Indian FMCG companies, which function within a complex financial ecosystem. These factors include market conditions, industry dynamics, and firm-specific traits.