Cash holdings, ownership structure, corporate governance and firm value

This study investigates the relationship between cash holdings, managerial ownership, family ownership, government ownership, board size, board composition and firm performance by taking Indonesian manufacturing publicly listed firm as the sample over the period from 2011 to 2014. Fixed effect model...

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Main Author:	Wisesa, Prasetya Hadi
Format:	Thesis
Language:	eng eng
Published:	2015
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/5570/1/s817000_01.pdf https://etd.uum.edu.my/5570/2/s817000_02.pdf
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id	my-uum-etd.5570
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Md. Rus, Rohani
topic	HG Finance
spellingShingle	HG Finance Wisesa, Prasetya Hadi Cash holdings, ownership structure, corporate governance and firm value
description	This study investigates the relationship between cash holdings, managerial ownership, family ownership, government ownership, board size, board composition and firm performance by taking Indonesian manufacturing publicly listed firm as the sample over the period from 2011 to 2014. Fixed effect model and random effect model are employed to analyse the relationship between those variables. The findings of this study reveal that cash holdings, family ownership, and government ownership are negatively correlated with firm value. The excess cash holdings are a sign that the firm tends to retain the cash rather than pay it via dividends and there is a possibility that the cash is employed for non-pecuniary benefits which is not analogous to the shareholders' interest. The negative relationship shown by family ownership might suggest that the firm is not being managed professionally. For government ownership, the negative relationship might indicate that the government is interested in fulfilling the social agenda rather than maximizing profit. The positive relationship is only exhibited by board size. Having a higher number of board members will increase the performance. This study also presents the relationship of variables among main board and development board in Indonesia Stock Exchange. A more significant impact is perceived by the development board firms rather than main board firms
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Wisesa, Prasetya Hadi
author_facet	Wisesa, Prasetya Hadi
author_sort	Wisesa, Prasetya Hadi
title	Cash holdings, ownership structure, corporate governance and firm value
title_short	Cash holdings, ownership structure, corporate governance and firm value
title_full	Cash holdings, ownership structure, corporate governance and firm value
title_fullStr	Cash holdings, ownership structure, corporate governance and firm value
title_full_unstemmed	Cash holdings, ownership structure, corporate governance and firm value
title_sort	cash holdings, ownership structure, corporate governance and firm value
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2015
url	https://etd.uum.edu.my/5570/1/s817000_01.pdf https://etd.uum.edu.my/5570/2/s817000_02.pdf
_version_	1747827952020619264
spelling	my-uum-etd.55702021-03-29T09:46:52Z Cash holdings, ownership structure, corporate governance and firm value 2015 Wisesa, Prasetya Hadi Md. Rus, Rohani School of Economics, Finance & Banking Othman Yeop Abdullah Graduate School of Business HG Finance This study investigates the relationship between cash holdings, managerial ownership, family ownership, government ownership, board size, board composition and firm performance by taking Indonesian manufacturing publicly listed firm as the sample over the period from 2011 to 2014. Fixed effect model and random effect model are employed to analyse the relationship between those variables. The findings of this study reveal that cash holdings, family ownership, and government ownership are negatively correlated with firm value. The excess cash holdings are a sign that the firm tends to retain the cash rather than pay it via dividends and there is a possibility that the cash is employed for non-pecuniary benefits which is not analogous to the shareholders' interest. The negative relationship shown by family ownership might suggest that the firm is not being managed professionally. For government ownership, the negative relationship might indicate that the government is interested in fulfilling the social agenda rather than maximizing profit. The positive relationship is only exhibited by board size. Having a higher number of board members will increase the performance. This study also presents the relationship of variables among main board and development board in Indonesia Stock Exchange. A more significant impact is perceived by the development board firms rather than main board firms 2015 Thesis https://etd.uum.edu.my/5570/ https://etd.uum.edu.my/5570/1/s817000_01.pdf text eng public https://etd.uum.edu.my/5570/2/s817000_02.pdf text eng public masters masters Universiti Utara Malaysia Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309. Adams, R. B., & Mehran, H. (2011). Corporate performance, board structure, and their determinants in the banking industry. Federal Reserve Bank, New York. Ahern, K. R., & Dittmar, A. K. (2011). The changing of the boards: The impact on firm valuation of mandated female board representation. Norway. Ajija, S. R., Sari, D. W., Setianto, R. H., & Primanti, M. R. (2010). Smart way to learn Eviews. Jakarta: Salemba Empat. Anderson, R. C., & Reeb, D. M. (2003). 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Cash holdings, ownership structure, corporate governance and firm value

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