The financial determinants of corporate cash holdings: Evidence from some emerging markets

► We investigate corporate cash holdings debate in developing countries. ► We look into the effect of capital structure and dividend policy on cash holdings in BRIC countries. ► We adopt the Instrumental Variable analysis using the 2SLS system to capture the endogeneity between cash holdings and both capital structure and dividend decisions. ► We find that trade-off theory, pecking order theory and agency theory are important in determining financial decisions such as cash holdings in developing countries.