Corporate Governance Mechanisms and Corporate Cash Holdings?
This paper examines the relationship between firm-level corporate governance mechanisms and cash holdings,and their combined effect on firm value for a sample of firms listed in Singapore and Malaysia. We find that managers in firms with poor governance structure have more discretion over corporate cash policies,which leads to these firms holding larger cash reserves than firms with more effective governance. We further document that the incremental value of holding excess cash is negative for firms with poor governance. The discounts associated with these firms may reflect minority shareholders recognition of the possibility of managerial entrenchment.
Corporate governance Corporate cash holdings
Yuanto Kusnadi
Hong Kong University of Science and Technology
国际会议
成都
英文
2007-07-09（万方平台首次上网日期，不代表论文的发表时间）