The Effect of Corporate Governance Structure on Corporate Cash Holdings: An Empirical Analysis of Nigerian Listed Firms
In this paper,we attempt to investigate the effect of corporate governance structure on corporate cash holdings.The study focus on Nigerian listed firms for the five years ended 2005.We center on cash because of its significance in the operations of the firm,and it represents a substantial amount of firm”s assets that may easily be mismanaged by the agent,especially in firms with weak governance system.We assume corporate governance to have some level of influence in determining the level of cash held by Nigerian hsted firms.We adopt the panel data regression model in our analysis and the results indicate that corporate governance has a considerable effect on the policy of corporate cash holdings.Interestingly,poorly governed firms are found to invest cash reserves on projects with little or no returns to investors.We further found managers in Nigerian firms to building empire of cash holdings to avoid being monitored by the regulatory bodies.Generally,Nigerian firms are found to be holding a sizeable amount of their assets in cash and cash equivalents.We also found consistency with the agency theory of cash holdings.This paper contributes to the growing body of literatures that argues in favor of good corporate governance of the firm.
cash holdings corporate governance listed firms Nigeria agency theory
Benjamin I. Ehikioya Qin Yuanjian
School of Management, Wuhan University of Technology
国内会议
天津
英文
478-488
2007-11-03（万方平台首次上网日期，不代表论文的发表时间）