Macroeconomic Uncertainty and Cash Holdings of Top 50 Listed Firms in Vietnam Stock Exchange

2017 ◽

Vol 64 (3) ◽

pp. 289-306 ◽

Cited By ~ 1

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.

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

Managerial Finance ◽

10.1108/mf-05-2021-0201 ◽

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.

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The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v9i4.15887 ◽

2019 ◽

Vol 9 (4) ◽

pp. 385

Author(s):

Walid Shehata Soliman

Keyword(s):

Firm Growth ◽

Stock Exchange ◽

Cash Holdings ◽

Moderating Effect ◽

Accounting Conservatism ◽

Firm Characteristics ◽

Listed Firms ◽

Growth Opportunity ◽

Negative Effect ◽

Egyptian Stock Exchange

Recent studies are interested in the determinants of cash holdings (CASH), some of these studies focus on conservatism, as one of these determinants. In light of a debate on the nature of the association between conservatism and CASH, this paper discusses and investigates the answers for three questions, the first question about the direct association between conservatism and CASH, the second question about the moderating effect of firm characteristics on this association, the third question about the effect of adopting Egyptian Accounting Standards (EAS) since 2016 on the last association. This paper focuses on Egyptian listed firms in Egyptian Stock Exchange (EGX), especially EGX 100, for six years period from 2013 to 2018 for 11 main sectors, 125 firms and 703 unbalances panel data observations. The findings indicate that (1) conservatism has a negative effect on CASH, (2) only firm size has a moderating and positive effect on the association between conservatism and CASH, (3) firm leverage, firm growth opportunity, and firm managerial ownership do not have a moderating effect on the last association. (4) Adopting EAS in 2016 by Egyptian listed firms gives the management of these firms' suitable chances to control CASH using its association with conservatism.

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Is Voluntary Disclosure Value Relevant? Evidence from Top Listed Firms in India

Vision The Journal of Business Perspective ◽

10.1177/0972262920986293 ◽

2021 ◽

pp. 097226292098629

Author(s):

Rupjyoti Saha ◽

Kailash Chandra Kabra

Keyword(s):

Voluntary Disclosure ◽

Value Relevance ◽

Stock Exchange ◽

Market Value ◽

Policy Implications ◽

Positive Contribution ◽

Listed Firms ◽

Strategic Disclosure ◽

Relevant Evidence ◽

The Relationship

In view of ongoing reforms in India with emphasis on improving transparency of corporate, the present study aims to examine the influence of voluntary disclosure on the market value of India’s top-listed firms. To this end, the study uses a sample of top 100 non-financial and non-utility firms listed at Bombay Stock Exchange based on market capitalization over a 5-year period (2014–2018). To control potential endogeneity in the relationship between voluntary disclosure and firms’ market valuation, fixed effect panel data model and two-stage least squares model of estimation have been employed. The result obtained from the analysis suggests that enhanced level of voluntary disclosure significantly improves the market value of sample firms. The study further undertakes additional analysis by categorizing voluntary disclosure into its sub-components wherein the findings reveal that three components of voluntary disclosure such as corporate and strategic disclosure, forward looking disclosure and corporate governance disclosure make positive contribution towards market value of firms, while the remaining components of voluntary disclosure such as human and intellectual capital disclosure and financial and capital market disclosure do not appear to have any significant influence on the same. Overall, the finding suggests that voluntary disclosure made by sample firms is considered relevant by investors. However, value relevance of different components of voluntary disclosure varies with the nature and extent of information disclosed. The study offers some important policy implications.

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How Moroccan institutional investors view dividend policy

Managerial Finance ◽

10.1108/mf-06-2017-0215 ◽

2017 ◽

Vol 43 (12) ◽

pp. 1332-1347 ◽

Cited By ~ 5

Author(s):

H. Kent Baker ◽

Imad Jabbouri

Keyword(s):

Institutional Investors ◽

Stock Prices ◽

Dividend Policy ◽

Stock Exchange ◽

Mail Survey ◽

High Response Rate ◽

Content Type ◽

Listed Firms ◽

Dividend Policies ◽

Dividend Payments

Purpose The purpose of this paper is to examine how Moroccan institutional investors view dividend policy. It discusses the importance these investors attach to the dividend policy of their investee firms, how much influence they exercise in shaping investee firms’ dividend policies, their reactions to changes in dividends, and their views on various explanations for paying dividends. Design/methodology/approach A mail survey provides a respondent and firm profile and responses to 28 questions involving various explanations for paying dividends and 30 questions on different dividend issues. Findings Institutional investors attach substantial importance to dividend policy and prefer high dividend payments. Although liquidity needs are a major driver, taxes play little role in shaping dividend preferences. Respondents agree with multiple explanations for paying dividends giving the strongest support to catering, bird-in-the-hand, life cycle, signaling, and agency theories. Research limitations/implications Despite a high response rate, the number of respondents limits partitioning the sample and testing for significant differences between different groups. Practical implications The lack of communication between Casablanca Stock Exchange (CSE) listed firms and institutional investors may depress stock prices and increase volatility. The results suggest agency problems and a weak governance environment at the CSE. Originality/value This study documents the importance that institutional investors place on dividend policy, their reactions to changes in their investees’ dividend policy, and the methods used to influence these firms. It extends previous research by reporting the level of support Moroccan institutional investors give to various explanations for paying dividends.

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Hans Sicat and the Transformation at the Philippine Stock Exchange

Asian Case Research Journal ◽

10.1142/s0218927514500163 ◽

2014 ◽

Vol 18 (02) ◽

pp. 429-454

Author(s):

Manuel C. Dioquino

Keyword(s):

Stock Exchange ◽

Chief Executive ◽

Business Community ◽

Foreign Investors ◽

Listed Firms ◽

The Public ◽

Investment Banker ◽

The Board Of Directors ◽

The Subject ◽

Credibility Problem

The Philippine Stock Exchange, Inc. (PSE) was suffering a credibility problem in 2011. Just like the Philippine economy, the PSE was not performing well and the integrity of its leadership and decisions they made was being questioned by the public at large and the business community in particular. Hans Sicat, a retired investment banker, was invited to join the Board of Directors with a tacit agreement that he would be elected Chairman. Events thereafter led to Mr. Sicat's appointment as President and Chief Executive Officer of the bourse. Hans Sicat turns around the stock exchange successfully. How he makes it look seemingly simple is the subject of this case. Hans places all transformative efforts into two “bucket lists”. All of his efforts to increase the volume of trade in the exchange are classified under Liquidity, while all efforts to restore the integrity within the bourse and its listed firms, he refers to as Governance issues. The Philippine Stock Exchange, Inc. transformation does not go unnoticed by domestic and foreign investors, and other stakeholders as well. It breaks the 5,000 point barrier.

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The effect of auditor narcissism on audit market competition

Management Research Review ◽

10.1108/mrr-08-2020-0517 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Hojat Mohammadi ◽

Mahdi Salehi ◽

Meysam Arabzadeh ◽

Hassan Ghodrati

Keyword(s):

Financial Markets ◽

Significant Relationship ◽

Design Methodology ◽

Audit Quality ◽

Stock Exchange ◽

Market Competition ◽

Competitive Pressure ◽

Content Type ◽

Listed Firms ◽

Audit Market

Purpose This paper aims to assess auditor narcissism’s effect on audit market competition (auditor concentration, clients’ concentration and competitive pressure). Design/methodology/approach This paper’s method is descriptive-correlational based on published information from listed firms on the Tehran Stock Exchange from 2012 to 2018 using a sample of 188 firms (1,310 observations). The method used for hypothesis testing is linear regression using panel data. Findings The results show a negative and significant relationship between auditor narcissism and audit market competition and its indices, including auditor concentration, clients’ concentration and competitive pressure. Moreover, a positive and significant relationship was observed between audit quality and audit market competition and its indices, including auditor concentration, client concentration and competitive pressure. Originality/value To analyzes competition indices in the audit market (auditor concentration, clients’ concentration and competitive pressure). The variable is assessed once more using the exploratory factor analysis of the so-called three variables single variable, named audit market competition. So the central question of the study is investigated within a broader sense. Moreover, as the present study is carried out in the emergent financial markets with extremely competitive audit markets to figure out the effect of auditors’ intrinsic characteristics on such markets’ competitiveness, it can provide useful information in this field.

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