scholarly journals Financial Drivers of Corporate Cash holdings and its Implications: Evidence from Pakistan Stock Exchange

2021 ◽  
Vol 5 (IV) ◽  
pp. 27-44
Author(s):  
Nadia Nazir
Keyword(s):  
Stock Exchange ◽  
Cash Holdings ◽  
Corporate Cash Holdings

scholarly journals The Effect of Leverage on Corporate Cash Holdings: Evidence from Indonesian Manufacturing Firms

2018 ◽  
Vol 9 (2) ◽  
pp. 61-72
Author(s):  
Anggita Langgeng Wijaya ◽  
Name Bandi
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Negative Influence ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Multiple Regressions ◽  
The Impact ◽  
Corporate Cash Holdings ◽  
Study Hypothesis

The objective of this research is to test the impact of leverage on corporate cash holdings for sample of manufacturing companies enlisted on the Indonesian Stock Exchange over the period 2006-2007. Population of this research is all of manufacturing companies on the Indonesian Stock Exchange. The sampling method is purposive. The study hypothesis was tested using multiple regressions. The results show that leverage has a negative influence on corporate cash holdings. Indonesian manufacturing firms with high leverage can hold cash in small amounts because debt is a substitute for corporate cash holdings.

Do female executives and CEO tenure matter for corporate cash holdings? Insight from a Southeast Asian country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suherman Suherman ◽  
Berto Usman ◽  
Titis Fatarina Mahfirah ◽  
Renhard Vesta
Keyword(s):  
Capital Market ◽  
Capital Expenditure ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Southeast Asian ◽  
Female Executives ◽  
Content Type ◽  
Ceo Tenure ◽  
Two Measures ◽  
Corporate Cash Holdings

Purpose This paper aims to investigate the relationship between female executives, chief executive officer (CEO) tenure and corporate cash holdings in the context of the developing Southeast Asian capital market (Indonesia). Design/methodology/approach The sample was screened from 231 publicly listed companies in the Indonesian Stock Exchange. The period of observation was 2011–2017. Two measures were applied for corporate cash holdings: the ratio of cash and cash equivalent to total assets and cash and cash equivalent to net assets. Three surrogate indicators were used for female executives: female CEO, the proportion of female members in the board of management and the number of female members in the board of management. CEO tenure is the length of time a CEO has been a member of the board of management. This study uses panel data regression analysis, including the fixed effect model with clustered standard errors. Findings The empirical evidence indicates that female executives and CEO tenure are positively and negatively associated with corporate cash holdings, respectively, and both are significantly related. Additional analysis using lagged independent variables remains consistent with the main analysis, suggesting that corporate cash holding becomes higher as a female presence in the board of management increases. Research limitations/implications Empirical tests set in Indonesia suggest that female executives are more conservative and risk-averse, thereby holding more cash with a precautionary motive. The findings also imply that CEOs with long tenure focus on long-term performance such as increasing research and development investments or capital expenditure, thus holding less cash. Accordingly, policymakers and regulators should promote diversity issues proportionally and advance to the board level. Originality/value This study contributes to the field of executive and CEO studies by enriching the empirical findings in related topics. In addition, to the best of the authors’ knowledge, this is one of the first studies applying two measures of cash holdings in the setting of a developing Southeast Asian capital market (Indonesia).

scholarly journals An Analysis Regarding Cash Holdings. Empirical Study on the Bucharest Stock Exchange Listed Firms

2017 ◽  
Vol 64 (3) ◽  
pp. 289-306 ◽  
Author(s):  
Elena Alexandra Nenu ◽  
Georgeta Vintilă
Keyword(s):  
Multivariate Regression ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Ownership Concentration ◽  
Target Level ◽  
Listed Firms ◽  
Tangible Assets ◽  
Financial Conservatism ◽  
Corporate Cash Holdings ◽  
Unbalanced Panel Data

Abstract Worldwide corporate cash holdings have significantly increased and have become an important tool for managers. This study explores the factors that influence firms’ behavior regarding cash holdings and the signal that financial conservatism is sending to potential investors. Our data consists in annual observations collected through the Reuters Eikon platform. It includes companies listed on the Bucharest Stock Exchange, the investigated period being 2005-2014. The econometric analysis employs multivariate regression for an unbalanced panel data, using the OLS technique. The results show a positive correlation of cash holdings with the value registered by this indicator in the previous period, fact that might be interpreted as an attempting of the companies to maintain a target level of cash. Also, the results showed a non-linear relationship between leverage and cash holdings, while the tangible assets determine a negative correlation. As regards firm size and ownership concentration, the correlations were not statistically validated.

scholarly journals Determinants of Corporate Cash Holdings: Evidence from MNCs in Pakistan

2018 ◽  
Vol 4 (1) ◽  
pp. 71-78
Author(s):  
Nadeem Ahmed Sheikh ◽  
Khawaja Khalid Mehmood ◽  
Mujtaba Kamal
Keyword(s):  
Fixed Effects ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Cash Flows ◽  
Ordinary Least Squares ◽  
Capital Expenditures ◽  
Cash Holding ◽  
Working Capital ◽  
Growth Opportunities ◽  
Corporate Cash Holdings

The purpose of this article is to investigate whether firm-specific variables (i.e. size, growth opportunities, profitability, capital expenditures, leverage, dividends, cash flow and working capital) affect the cash holdings of MNCs. Moreover, to investigate whether theories relevant to cash holdings provide any justification to narrate the cash holding behavior of listed MNCs on Pakistan Stock Exchange (PSX) for the period 2006-2016. Results indicate that profitability positively impacts cash holdings. Firm size positively impacts cash holdings in pooled Ordinary Least Squares, while it negatively impacts cash holdings in the fixed effects method; however the relationship is insignificant. Leverage, growth opportunities, dividends, working capital ratio and capital expenditures are significant and negatively related to corporate cash holdings. Finally, cash flows are unrelated to cash holdings. In short, results indicate that firm-specific variables significantly affect the cash holdings of MNCs. Moreover, (+/-) coefficients of different explanatory variables indicate that theories relevant to cash holdings provide some support to explain the cash holding behavior of MNCs in an emerging economy - Pakistan.

scholarly journals Corporate Governance, Cash holdings and Value of a Firm: Evidence from Australian Firms

2012 ◽  
Vol 4 (12) ◽  
pp. 606-614 ◽  
Author(s):  
Subba Reddy Yarram
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Significant Influence ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Board Independence ◽  
Board Structure ◽  
Average Return ◽  
Actual Return ◽  
Corporate Cash Holdings

The present study analyses influence of board structure and cash holdings on the value of Australian firms for the period 2004 to 2010. Australian Stock Exchange (ASX) adopted the Principles of Good Corporate Governance Guidelines in 2003 and Australian firms have started adopting these principles starting 2004. Similarly the reporting framework of Australian firms is harmonized with the rest of the world with adoption of Australian International Financial Reporting Standards (AIFRS) starting in 2004. Corporate cash holdings despite their significance have not been considered extensively in prior literature outside the US. Cash holdings may have significant influence on the value of the firm as too much excess cash may lead to misuse of these funds by entrenched managers. Corporate governance has a role to play in maintaining appropriate cash holdings and their use. The present has two objectives: it considers the influence of corporate cash holdings on the value of Australian firms; and it examines the role of board structure on the relationship between cash holdings and value of the firm. The present study considers all non-financial firms that are part of the All Ordinaries Index (AOI). The present study constructs Fama French 25 portfolio and estimate the excess return as the difference between actual return and the average return of the relevant FF portfolio. OLS analyses show that board independence has no significant impact on the value of the firm though cash holdings have significant influence. Analysing using panel data methods however unearth the significant influence of board independence on the value of Australian firms.

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