Corporate Cash Holdings and Agency Conflicts: Evidence from Moroccan Developing Market

Mouline, Boubker; Sadok, Hicham

doi:10.13189/ujaf.2021.090103

Cited by 5 publications

(8 citation statements)

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“…Subsequently, a positive and significant coefficient of BSIZE (Board Size) was discovered, and this implied that the higher the total number of the board of directors' results, the higher the company's cash holding, thereby contradicting H1. This empirical finding corroborates the findings of [5] and [20], which supports the argument that the board size positively affects cash holding. These results are in accordance with the research carried out by [5] and [20].…”

Section: Resultssupporting

confidence: 89%

“…This empirical finding corroborates the findings of [5] and [20], which supports the argument that the board size positively affects cash holding. These results are in accordance with the research carried out by [5] and [20]. This finding implies that larger boards are associated with higher cash holding.…”

Section: Resultssupporting

confidence: 89%

“…Meanwhile, previous empirical studies further reported the important act of corporate governance in cash holding policy. [2], [3], [4], [5] and [6] reported the presence of an agency motive associated with cash holding. This implies that cash has no value in a country with enormous agency problems between insiders and outsiders or shareholders of the company.…”

Section: Introductionmentioning

confidence: 99%

“…The results are mixed, where with empirical studies presenting both positive and negative evidence in highlight of the relationship board size -cash holding nexus and board independent -cash holding nexus. For instance, [12] found negative impact board size on cash holding, meanwhile [5] and [13] show positive impact. [14] confirms positive relationship between board independent and cash holding, meanwhile [8] and [10] confirms negative.…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance's Policy on the Impact of Cash Holding in Indonesia

Kusumawardani¹,

Yudaruddin²,

Yudaruddin³

2021

ujaf

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The Asian Financial Crisis in 1997 and various other scandals in large companies in Indonesia led to the emergence of good corporate governance (GCG). Regulators on the capital markets understand that good corporate governance promotes transparency and improves the quality of financial reporting, including cash management, responsibly. Furthermore, high cash levels lead managers to misuse the fund for personal gain, because the assets under their supervision increase thereby. This research analyzes the effect of corporate governance, such as board size, and independence on cash holding in Indonesia. Data were obtained from 373 firms in seven industries publicly tabulated on Indonesia Stock Exchanges (IDX) from 2008-2017 and 2,742 firm-year observations. The obtained data were analyzed using Common, Fixed, and Random Effects Models. The result showed that the total number of the board of directors, is positively and significantly proportional to Board Size thereby increasing the company holds cash. Meanwhile, the other corporate governance variable, known as Board Independence, is insignificant in any three models. The result also showed positive coefficients of board size on cash holding (CASH) in companies with and without CEO duality. The result further showed that the independent board had a significant and negative impact on cash holding (CASH), which is more pronounced in companies with CEO duality and used to strengthen corporate governance. The results have specific policy implications like the importance of corporate governance, in particular the role of the Board of Directors in the effective supervision of managers and transparency of enterprises.

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Section: Resultssupporting

confidence: 89%

Section: Resultssupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate Governance's Policy on the Impact of Cash Holding in Indonesia

Kusumawardani¹,

Yudaruddin²,

Yudaruddin³

2021

ujaf

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“…To be more specific, quick ratio is used, because it includes the most liquid current assets that can be used for this settlement in the short run. Empirically, a positive correlation between leverage and cash was observed by Mahadwartha and Ismiyanti (2008), and a negative one by Mouline and Sadok (2021).…”

Section: Variablesmentioning

confidence: 93%

Capital Structure and Its Determinants—A Comparison of European Top-Rated CSR and Other Companies

Krištofík

Medzihorský

Musa

2022

JRFM

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Corporate social responsibility (CSR), ethics, and sustainability have become an inseparable part of the discourse of modern business. Applying linear regression and comparison of intervals of beta-coefficients, we focused on the mediating role of CSR in the relations between capital structure and its determinants. Examining the sample of European large caps, we observed that CSR companies are significantly more leveraged than non-CSR ones. The influence of the corporate income tax rate and depreciation and amortization on leverage does not differ significantly between CSR and non-CSR companies. Moreover, tax shields seem to be insignificant for both CSR and non-CSR companies. However, we should stress that, for depreciation and amortization, the beta coefficient has a different significance in the model of CSR companies, compared to the model of non-CSR companies. Also, the difference between the models regarding the relations of leverage and asset tangibility is worth noting. Non-CSR companies with a higher proportion of fixed assets have lower leverage. This result was not confirmed for CSR companies. The hypothesis that CSR replaces the role of collateral cannot be confirmed. Available cash influences leverage negatively in both models, supporting the pecking-order theory. This result is much stronger for non-CSR companies compared to CSR ones. This study found fewer statistically significant differences between CSR and non-CSR companies regarding capital structure determinants than were expected.

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Non Performing Loan Memoderasi Pengaruh Kualitas Aset, Likuiditas, Rentabilitas Pada Kecukupan Modal

Afriani,

Yuliarini,

Inayati

2023

ekobistek

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This research aims to determine the influence of asset quality, liquidity and profitability on the capital adequacy ratio in multi-finance companies that have gone public and to determine the influence of asset quality, liquidity and profitability on the capital adequacy ratio with NPL as a moderating variable in multi-finance companies that have gone public. The location for this research is without visiting the location of the research object, but searching for financial report data by accessing the BEI website at http:// www.idx.co.id as well as on the website of every multi-finance company registered on the BEI for 2015-2021. All companies Multifinance companies on the IDX are the population used in this research in 2015-2021, with 19 companies, while the sample in this research was 15 companies with a research period of 7 years so that a sample of 105 samples was obtained. The results of this research show that asset quality has no significant effect on capital adequacy in multi-finance companies, Liquidity has a significant effect on capital adequacy in multi-finance companies, Profitability has no significant effect on capital adequacy, NPL moderates the effect of asset quality on capital adequacy in multi-finance companies, NPL moderates the influence of liquidity on capital adequacy in multi-finance companies, NPL does not moderate the effect of profitability on capital adequacy in multi-finance companies that go public.

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Corporate Cash Holdings and Agency Conflicts: Evidence from Moroccan Developing Market

Cited by 5 publications

References 0 publications

Corporate Governance's Policy on the Impact of Cash Holding in Indonesia

Corporate Governance's Policy on the Impact of Cash Holding in Indonesia

Capital Structure and Its Determinants—A Comparison of European Top-Rated CSR and Other Companies

Non Performing Loan Memoderasi Pengaruh Kualitas Aset, Likuiditas, Rentabilitas Pada Kecukupan Modal

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