City Research Online

Cash holdings and corporate financialization: Evidence from listed Latin American firms

Rabinovich, J. ORCID: 0000-0002-9175-0848 & Perez Artica, R. (2022). Cash holdings and corporate financialization: Evidence from listed Latin American firms. Competition & Change, 27(3-4), pp. 635-655. doi: 10.1177/10245294221117275


The increase in cash holdings held by non-financial corporations in emerging economies in general, and Latin American in particular, has received less attention vis-à-vis their advanced economies’ peers. Considering that cash holdings contain not only cash but also short-term, interest-bearing assets, we test whether the pursuit of financial revenues was one motive behind the decision to hold this type of asset as it is claimed in analyses of corporate financialization. We use a panel of listed non-financial firms from Argentina, Brazil, Chile, Mexico, and Peru between 1998 and 2018 to test this hypothesis. Although we find supporting statistical evidence in favor of this relation, this is mostly explained by Brazil and results point towards a low economic significance.

Publication Type: Article
Additional Information: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License ( which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (
Publisher Keywords: cash holdings, financialization of the firm, Latin America, financialization, corporate financialization
Subjects: G Geography. Anthropology. Recreation > G Geography (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Departments: School of Policy & Global Affairs > International Politics
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