Institutional Ownership and Firm Cash Holdings

2012 ◽  
Author(s):  
Christine A. Brown ◽  
Yangyang Chen ◽  
Chander Shekhar
Keyword(s):  
Cash Holdings ◽  
Institutional Ownership

Transient Institutional Ownership, Costly External Finance, and Corporate Cash Holdings

2020 ◽  
Author(s):  
Hyun Joong Im ◽  
Heungju Park ◽  
Shams Pathan ◽  
Robert W. Faff
Keyword(s):  
Cash Holdings ◽  
Institutional Ownership ◽  
External Finance ◽  
Corporate Cash Holdings

How does Buddhism affect corporate cash holdings?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaoqin Li ◽  
Xichan Chen ◽  
Wanli Li ◽  
Xixiong Xu
Keyword(s):  
Corporate Governance ◽  
Cash Holdings ◽  
Institutional Ownership ◽  
Religious Culture ◽  
Legal Institutions ◽  
Governance System ◽  
Heckman Selection Model ◽  
Content Type ◽  
The Impact ◽  
Corporate Cash Holdings

PurposeThis study explores whether and how Buddhism impacts corporate cash holdings. Buddhist culture affects investors' perception of how cash is deployed and then influences corporate cash holdings. This study first examines the impact of Buddhism on corporate cash holdings and then investigates whether formal governance mechanisms such as legal institutions and institutional ownership influence the relationship between Buddhism and corporate cash holdings.Design/methodology/approachThe authors conduct empirical tests with data on Chinese listed companies between 2006 and 2019. Buddhism is measured with the natural logarithm of the number of Buddhist temples within a radius of a certain distance around a firm's headquarters. The authors adopt the OLS method to regress and take the 2SLS method, Heckman selection model and FEVD approach to address the endogeneity issue.FindingsThe results show a positive relationship between Buddhism and corporate cash holdings. This positive relation is more prominent for firms located in regions with weak legal institutions and for firms with low institutional ownership. Further analysis shows that Buddhism works through the channel of alleviating agency problems and finally improves the value of cash to investors.Research limitations/implicationsThe authors’ findings have important implications. First, this study provides inspiration for incorporating the ethical values of traditional cultures, such as Buddhism, into the corporate governance system. Second, the findings imply that informal institutions can influence corporate financial decisions beyond the effect of formal institutions, suggesting that informal systems should be emphasized when dealing with business affairs in countries where legal institutions are relatively weak. Third, the results suggest the significance of encouraging research on religious culture to explore its active role in corporate governance.Originality/valueThis study illustrates the positive value of religious culture in advancing corporate governance by relating Buddhism to corporate cash holdings based on the explanation of investors' perception. It makes a marginal contribution to the literature that investigates the determinants of cash policies and explores the firm-level consequences of religious culture, adding to the research area of culture and corporate finance.

scholarly journals Corporate Governance, Capital Expenditure Dan Cash Holdings

2019 ◽  
Vol 24 (1) ◽  
pp. 1
Author(s):  
Yanti, Liana Susanto, Henny Wirianata, Viriany
Keyword(s):  
Corporate Governance ◽  
Capital Expenditure ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Cash Holding ◽  
Manufacturing Companies ◽  
Negative Effect

This study aims to obtain empirical evidence about the effect of Corporate Governance and Capital Expenditure on Cash Holding. This study use secondary data from financial statements of manufacturing companies listed on the Indonesia Stock Exchange in 2014-2016. The structure of Corporate Governance is measured using independent commissioners, board of commissioners, and institutional ownership. The analytical method used in this study is multiple regression analysis which is processed with the E-Views program. The results of this study indicate that independent commissioners, board size, and institutional ownership partially have no significant effect on cash holding. While Capital Expenditure has a significant and negative effect on cash holding.

scholarly journals The Impact of Managerial Ownership on the Cash Holdings in the Cement Sector of Pakistan

2021 ◽  
Vol 2 (1) ◽  
pp. 97-105
Author(s):  
MUHAMMAD SOHAIL KHALIL ◽  
MUHAMMAD AAMIR NADEEM ◽  
MUHAMMAD AAMIR NADEEM ◽  
SAQIB SHAHZAD
Keyword(s):  
Panel Data ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Institutional Ownership ◽  
Multiple Regression Model ◽  
Managerial Ownership ◽  
Cash Holding ◽  
Independent Variables ◽  
The Impact ◽  
The Relationship

The study aims to investigate the impact of managerial ownership on the cash holdings in cement sector of Pakistan. For the purpose 15 Companies were selected from the sector as the rest were delisted from Pakistan stock exchange. The independent variables such as managerial ownership, institutional ownership and annual profit and leverage ratios were tested against the dependent variable cash holdings for the period of 09 years. Panel data was taken i.e. from 2007 to 2015 from business recorder and respective websites of the companies. Multiple regression model was used to determine the relationship between the variables further ANOVA test was also used to check overall association of independent variables on cash holding yielding positive and significant results.

Institutional investors and the value of excess cash holdings: empirical evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ilyas ◽  
Rehman Uddin Mian ◽  
Nabeel Safdar
Keyword(s):  
Institutional Investors ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Institutional Ownership ◽  
High Dimensional ◽  
Content Type ◽  
Listed Firms ◽  
Alternative Measures ◽  
Excess Cash

PurposeThis study examines the effects of foreign and domestic institutional investors on the value of excess cash holdings in the context of Pakistan where the institutional setting is broadly considered as non-friendly to outside shareholders due to family control.Design/methodology/approachA panel sample of 220 listed firms on the Pakistan Stock Exchange (PSX) was employed over the period 2007–2018. Data on institutional ownership are collected from the Standard & Poor’s (S&P) Capital IQ Public Ownership database, while the financial data are collected from Compustat Global. The study uses ordinary least squares (OLS) regression with year and firm fixed effects as the main econometric specification. Moreover, the application of models with alternative measures, high-dimensional fixed effects and two-stage least squares (2SLS) regression are also conducted for robustness.FindingsRobust evidence was found that unlike domestic institutional investors, which do not influence the value of excess cash holdings, foreign institutional investors positively affect the contribution of excess cash holdings to firm value. The positive effect on excess cash holdings' value is mainly driven by foreign institutions domiciled in countries with strong governance and high investor protection. Moreover, this effect is stronger in firms that are less likely to have financial constraints.Originality/valueThis study provides novel evidence on the effect of institutional investors on the value of excess cash holdings in an emerging market like Pakistan. It also adds to the literature by revealing that the effect of different groups of institutional investors on the value of excess cash holdings is not homogenous. The authors employ a panel sample of 220 listed firms on the Pakistan Stock Exchange (PSX) over the period 2007–2018. Data on institutional ownership are collected from the S&P Capital IQ Public Ownership database, while the financial data are collected from Compustat Global. The study uses OLS regression with year and firm fixed effects as the main econometric specification. Moreover, the application of models with alternative measures, high-dimensional fixed effects, and 2SLS regression are also conducted for robustness.

Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Variabel Intervening Profitabilitas

2017 ◽  
Vol 25 (1) ◽  
pp. 13-39
Author(s):  
Achmad Tjahjono ◽  
Siti Chaeriyah
Keyword(s):  
Corporate Governance ◽  
Path Analysis ◽  
Executive Director ◽  
Audit Committee ◽  
Positive Impact ◽  
Institutional Ownership ◽  
Analysis Tool ◽  
Manufacturing Companies ◽  
Company Value ◽  
Good Corporate Governance

The Company was founded with the goal of increasing the value of the company as well as to provide prosperity for the owners or shareholders. Good Corporate Governance and profitability is an effort to enhance company value. This study aims to determine the influence of good corporate governance to company value with profitability as intervening variable. The population of this research is manufacturing companies listed in Indonesia Stock Exchange in 2010 - 2014. The sample is taken by using purposive sampling method. Under this method, as many as 123 companies were obtained. The analysis tool to test the hypothesis is path analysis with AMOS software version 21. Data analysis method is descriptive analysis, path analysis, and sobeltest. The results of this study indicate that managerial ownership, the audit committee and the profitability have positive impact toward the of the company value, institutional ownership has positive impact but not significant, non-executive director with negative effect tendency on the company value. The results of this study also showed that profitability cannot mediate the effect of good corporate governance mechanisms on company value. It can be suggested to replace the intervening variable with other variables such as quality of earnings instead of profitability since it is declined as an intervening variable. non-executive director and institutional ownership does not contribute any positive and significant effect on company value and profitability. The following research can use another proxy in the measurement process and consider other theories that could explain comprehensively.

Dividend Payout Ratio: Persoalan Free Cashflow, Debt To Equity Ratio, Kepemilikan Institutional, Investment Opportunity, Dan Kesejahteraan Karyawan

Liquidity ◽  
2017 ◽  
Vol 6 (1) ◽  
pp. 1-11
Author(s):  
Nurlis Azhar ◽  
Helmi Chaidir
Keyword(s):  
Cash Flow ◽  
Significant Influence ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Flow Ratio ◽  
Prediction Ability ◽  
Employee Welfare ◽  
Equity Ratio

This study was conducted to examine the effect of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (Parliament) partially on manufacturing companies listed on Indonesia Stock Exchange period 2011-2015. In addition, to test the feasibility of regression model, the influence of Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) to Divident Payout Ratio (DPR) simultaneously at manufacturing company listed on Bursa Indonesia Securities period 2011-2015. The population in this study are 146 manufacturing companies that have been and still listed in Indonesia Stock Exchange period 2011-2013. The sampling technique used was purposive sampling and obtained sample of 42 companies. Data analysis technique used is by using multiple linear regression test. The results showed that Free Cash Flow Ratio, no significant effect on Divident Payout Ratio (DPR). Debt Equity Ratio (DER) has a negative and significant influence on Divident Payout Ratio (DPR), Institutional Ownership has a significant positive effect on Divident Payout Ratio (DPR), Employee Welfare and Price Earning Ratio (PER) has a positive and significant influence on the Divident Payout Ratio ). Simultaneously Free Cash Flow Ratio, Debt Equity Ratio (DER), Institutional Ownership, Employee Welfare and Price Earning Ratio (PER) give effect to Divident Payout Ratio. The prediction ability of the five variables to the Divident Payout Ratio (DPR) is 21.3% as indicated by the adjusted R square of 0.271 while the remaining 79.7% is influenced by other factors not included in the research model.

The Effect of Tax Risk on Real Earnings Management, Cash Holdings, and Future Cash Taxes Paid

2020 ◽  
Vol 45 (4) ◽  
pp. 41-92
Author(s):  
Jongil Park ◽  
Sangyi Shin
Keyword(s):  
Earnings Management ◽  
Cash Holdings ◽  
Real Earnings Management

Short Interest, Institutional Ownership, and Stock Returns

CFA Digest ◽  
2006 ◽  
Vol 36 (2) ◽  
pp. 100-101
Author(s):  
Stephen M. Horan
Keyword(s):  
Stock Returns ◽  
Institutional Ownership ◽  
Short Interest
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