The impact of political connections on the level of cash holdings: evidence from Tunisian listed firms

2022 ◽  
Vol 23 (1/2) ◽  
pp. 135
Author(s):  
Nadia Ben Sedrine Goucha ◽  
Inoussa Boubacar ◽  
Nadia Loukil
Keyword(s):  
Cash Holdings ◽  
Political Connections ◽  
Listed Firms ◽  
The Impact

The impact of political connections and business groups on cash holdings: Evidence from Chinese listed firms

2019 ◽  
Vol 40 ◽  
pp. 65-73 ◽  
Author(s):  
Tsui-Jung Lin ◽  
Hai-Yen Chang ◽  
Hui-Fun Yu ◽  
Ching-Pao Kao
Keyword(s):  
Business Groups ◽  
Cash Holdings ◽  
Political Connections ◽  
Listed Firms ◽  
The Impact

The Impact of Corporate Governance Mechanisms on the Relationship Between Cash Holdings and Audit Fees in Egyptian Listed Companies

2019 ◽  
Vol 9 (2) ◽  
pp. 314
Author(s):  
Eman Abdel-Wanis
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Panel Data Analysis ◽  
Cash Holdings ◽  
Audit Fees ◽  
Governance Mechanisms ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
The Relationship

This paper explores the impact of corporate governance mechanisms on the nature of the relationship between cash holdings and audit fees, which helps provide an opportunity to identify whether these mechanisms enable to mitigate agency problems, and thus lower audit fees through a sample of 78 Egyptian listed firms in EGX 100 during the period 2014-2016 using panel data analysis. Results indicated that cash holding increases auditing fees. The board characteristics affect negatively on the relationship between cash holdings and audit fees. Also, ownership structure affects negatively on the relationship between cash holdings and audit fees. As well audit committee affects negatively on the relationship between cash holdings and audit fees. There results support the view that corporate governance mitigate on the relationship between cash holdings and audit fees.

scholarly journals The Impact of Social Relationship between CEO and CFO on Cash Holdings in Chinese Listed Firms

2021 ◽  
Vol 12 (04) ◽  
pp. 764-774
Author(s):  
Zhiqiang Ye ◽  
Xiaomeng Wang ◽  
Jiawen Yu ◽  
Yuqi Zhang
Keyword(s):  
Social Relationship ◽  
Cash Holdings ◽  
Listed Firms ◽  
The Impact

Impact of ownership types and political connection on private equity placement

2017 ◽  
Vol 8 (4) ◽  
pp. 390-403 ◽  
Author(s):  
Gaoliang Tian ◽  
Yi Si ◽  
M.M Fonseka
Keyword(s):  
Private Equity ◽  
Political Connections ◽  
Private Firms ◽  
Political Connection ◽  
Content Type ◽  
Test Hypothesis ◽  
Listed Firms ◽  
Ultimate Ownership ◽  
The Impact ◽  
Ownership Types

Purpose In China, private equity placement (PEP) has become the most important equity refinancing method because most listed firms issue new stocks in this method. However, previous literature has not paid much attention to the impact of political connections on PEP. In this paper, the authors aim to focus on the effect of ultimate ownership types and political connections on approval, approval time, approval results and proceeds of PEP. Besides that the authors also explore the influence of different types and levels of political connections on PEP. Design/methodology/approach This study investigates the impact of ultimate ownership and political connections of private firms on the approval of PEPs. The authors obtain a final sample of 1,651 private placement events of Chinese-listed firms. To test the hypothesis that the authors developed in this paper, the authors use empirical models from the existing literature about political connections and corporate finance. They establish multiple linear regressions to test Hypothesis 1 and 3 and introduce a logit model to test Hypothesis 2. Findings First, this study documents that state-owned firms have significant advantages over private firms in approval procedure. Second, political connections seem to help private firms obtain approval of placements from China Securities Regulatory Commission. Third, political connections through government officers are not useful for firms to obtain refinance resources, whereas the connections of being members of Chinese People’s Political Consultative Conference and People’s Congress are the two valuable types of political connections to help private firms obtain approval. Originality/value This paper has three main contributions to the previous literature. The first contribution is to provide an evidence for the relation between political connections and PEP approval procedures. The second contribution is to provide a comparison between government officer’s connection and social title’s connection. The third contribution of this paper is to reveal the influence of non-disclosed political connection on PEP approval. All the three contributions are important for understanding the relation between political connections and firm refinancial policy.

Corporate Ownership, Political Connections and M&A: Empirical Evidence from China

2013 ◽  
Vol 12 (3) ◽  
pp. 41-57 ◽  
Author(s):  
Ningyue Liu ◽  
Liming Wang ◽  
Min Zhang
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Political Connections ◽  
The Political ◽  
Corporate Ownership ◽  
Listed Firms ◽  
And Performance ◽  
Using Data ◽  
Corporate Mergers And Acquisitions ◽  
The Impact

This paper examines the impact of political connections on corporate mergers and acquisitions (M&As) behavior using data from companies listed in Chinese equity markets during the period 1998 to 2010. Our empirical results indicate that firms with political connections have a greater probability of engaging in M&As and tend to engage in larger-scale M&As. The impact of political connections on corporate M&As is mainly realized via government intervention in state-owned enterprises (SOEs). The paper also investigates the impact of political connections on M&A performance, demonstrating a significantly negative impact when SOEs are involved but a significantly positive impact when non-SOEs are involved. The findings of this paper suggest that the political connections of Chinese listed firms have a strong influence on M&A activities and performance.

Impact of Chinese firms’ political connections on EVA performance: the moderating roles of connection heterogeneity and product diversification

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoming He ◽  
Ao Chen
Keyword(s):  
Corporate Strategy ◽  
Panel Data Analysis ◽  
Economic Value ◽  
Value Added ◽  
Product Diversification ◽  
Political Connections ◽  
The Political ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose This paper aims to explore the impact of a firm’s political connections on its economic value added (EVA) performance while treating connection heterogeneity and product diversification as moderators. Design/methodology/approach Based on data collected from 1,143 Chinese manufacturing listed firms in China’s A-share market from 2012 to 2017, this study conducted panel data analysis to investigate proposed relationships. Findings The findings provide evidence that political connections promote EVA performance of enterprises and both connection heterogeneity and product diversification negatively moderate the political connections – EVA performance relationship. Originality/value Drawing sights from the resource-based view, this study investigates the influence of corporate political connections on EVA performance, considering contingent factors of connection heterogeneity and corporate strategy (i.e. product diversification). It, thus, contributes to the literature on political connections by providing additional evidence to explaining the inconclusive findings on the political connections–firm performance relationship and extending prior research by emphasizing the moderating roles of connection heterogeneity and corporate strategy. It also complements prior research on EVA performance by exploring its antecedents.

Does economic risk affect corporate cash holdings?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Imran Hunjra ◽  
Tahar Tayachi ◽  
Rashid Mehmood ◽  
Anwaar Hussain
Keyword(s):  
Interest Rate ◽  
Manufacturing Sector ◽  
Cash Holdings ◽  
Vital Role ◽  
Economic Risk ◽  
Content Type ◽  
Listed Firms ◽  
Negative Effect ◽  
Cash Reserves ◽  
The Impact

PurposeEconomic risk plays a vital role in firm's cash holdings. We aim to determine the impact of economic risk on the firm's cash holdings.Design/methodology/approachThe data is collected from the DataStream from 2002 to 2018, which covers 552 listed firms in the manufacturing sector of Pakistan, Sri Lanka, India and Bangladesh. We apply a two-step dynamic panel estimation to analyze the results.FindingsWe use the variance of inflation and variance of interest rate as proxies of economic risk. Our results show that variance of inflation has a significant and negative effect while the variance of interest rate has a significant and positive effect on firms' cash holdings in selected countries. Furthermore, we find economic risk negatively affects the firm's cash holdings in the country-wise analysis. Firms should maintain a reasonable amount of cash reserves to handle uncertain situations.Originality/valueThis study may provide insights to financial decision-makers of a firm for better cash management according the economic conditions of the country.

Cash holdings, political connections, and earnings quality

2015 ◽  
Vol 11 (2) ◽  
pp. 215-231 ◽  
Author(s):  
Redhwan Al-dhamari ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Earnings Quality ◽  
Cash Holdings ◽  
Political Influence ◽  
Vital Role ◽  
Least Square ◽  
Political Connections ◽  
Political Connection ◽  
Content Type ◽  
Listed Firms ◽  
Cash Reserves

Purpose – The purpose of this paper is to investigate the influence of cash holding, political connection and their interaction effect on earnings quality in the Malaysian environment, where political influence plays a vital role in many aspects of business dealings and resources allocation is seriously affected by politics. Design/methodology/approach – This paper uses ordinary least square and seemingly unrelated regressions upon a sample of the Malaysian top 100 listed firms. Findings – This paper finds that earnings of firms with excess cash reserves are of high quality. Consistent with previous research, the study finds that investors perceive earnings numbers of politically connected firms as being of low quality. However, this research fails to support an expectation that the adverse consequences of holding a large amount of cash to earnings quality would be more pronounced when political extraction is high. The findings of this study suggest that policy makers should encourage or mandate firms to disclose information in relation to their connections with government, political party, or politicians so that investors and all interested parties can use the information to better assess the firms’ earnings quality. Originality/value – This research is considered as the first attempt to examine the relationships between cash holdings, political connections, and earnings quality in a developing country such as Malaysia.

Sign in / Sign up

Export Citation Format

Share Document