We investigated the model cash-cash flow sensitivity by proceeding the 165 Pakistani manufacturing firms data that published by the authentic government body state bank of Pakistan and these firms are listed in Karachi stock exchange. The observation period started from 2007 to 2010. This study disclose that Pakistani manufacturing firms try to escalate the cash holding level that beyond the firm cash flow level there should be two aspects of more holding first they hold for precautionary and second investment motives.
Keywords: Cash, Cash flow sensitivity, Manufacturing Firms, Pakistan
