The study focuses on the corporate cash holdings and its determinants using panel data analysis study on non financial firms selected form Karachi Stock Exchange. The sample of 50 non-financial firms were examines for the duration of ten years from 2003-13. Generalized Method of Moments (GMM) was applied on data; which was collected from annual reports of the firms. The results of the study show that firms; due to having high adjustment cost are unable to adjust the targeted cash level; so the results show a negative ROA and positive relationship was found with firms growth opportunities, receivables accounts, financial distress and inventories. Similarly the results of the study show no significant relationship of cash holdings with cash flows. This study has filled the study gaps and will be beneficial for financial analysts.
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