Geographical diversification and corporate liquidity in Malaysia: a quantile regression approach

Wasiuzzaman, Shaista

doi:10.1108/par-09-2019-0118

Cited by 4 publications

(4 citation statements)

References 47 publications

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“…Christina and Ekawati (2014) and Luo and Hachiya (2005) found that institutional ownership negatively affected the company's cash holding. Corporate liquidity policy is proxied by cash holding, current ratio, liquid ratio, absolute liquid ratio, cash conversion cycle, and working capital (Bagchi & Chakrabarti, 2014;Bokpin et al, 2011;Wasiuzzaman, 2019).…”

Section: Corporate Governance and Liquidity Policymentioning

confidence: 99%

Reciprocal Capital Structure and Liquidity Policy: Implementation of Corporate Governance toward Corporate Performance

Sumani¹,

Roziq²

2020

JAFEB

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The research objective examines the effect of corporate governance on capital structure and its effect on liquidity policy and corporate performance. It tests the effect of capital structure and liquidity policy on corporate governance. It also examines the effect of liquidity policy on capital structure and the effect of capital structure on liquidity policy. The study population is all manufacturing companies that went public on the Indonesia Stock Exchange in the period 2010-2019. The research population is 182 manufacturing companies. The Judgment Sampling was used and 109 companies meet the research criteria. The study used panel data for ten years so that the amount of data observed was 1090 observations. The analysis tool uses Warp Partial Least Square (WarpPLS). The results showed that corporate governance had a significant positive effect on capital structure, but corporate governance had a significant adverse effect on liquidity policy, and corporate governance had a significant positive effect on corporate performance. Furthermore, capital structure has a significant negative effect on corporate performance, but liquidity policy has no significant effect on corporate performance. Capital structure and liquidity policy are proven to be reciprocally significant positive correlations for manufacturing companies in Indonesia.

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Section: Corporate Governance and Liquidity Policymentioning

confidence: 99%

Reciprocal Capital Structure and Liquidity Policy: Implementation of Corporate Governance toward Corporate Performance

Sumani¹,

Roziq²

2020

JAFEB

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“…Furthermore, emerging markets are imperfect and dispose of a high level of information asymmetry causing a high cost of external funds and creating a preference for internal funds (Wasiuzzaman, 2020). Third, nowadays there is a great awareness about exploring and examining the role of CG mechanisms in Islamic countries because they have different characteristics such as culture, beliefs and laws.…”

Section: Introductionmentioning

confidence: 99%

Impact of board attributes and managerial ownership on cash holdings: empirical evidence using GMM and quantile regressions

Talbi

Menchaoui

2022

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Purpose The purpose of this study is to examine the impact of board attributes and managerial ownership on cash holdings. Design/methodology/approach The present study examines a sample of 70 listed firms in Saudi Arabia observed during the period stretching from 2006 to 2016. To test the hypotheses, the authors used generalized method of moments and quantile regressions. Findings The empirical results reveal that corporate governance (CG) mechanisms are inefficient in the Saudi context. In fact, the authors found that board size, board independence, duality and managerial ownership impact positively and significantly cash holdings. Additionally, quantile regressions confirm the results that at certain thresholds, CG mechanisms are not efficient in protecting shareholders’ interests. Shariah compliance is found to moderate negatively and significantly the studied relationship. Originality/value This study helps to not only clarify and help decision-makers to see the importance of corporate cash management but also to identify the limits of the CG mechanisms put in place.

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“…For both small and large firms, GD influences profitability only for firms with low and high levels of profitability, respectively. A recent study also used the QR technique to investigate the impact of GD on corporate liquidity (Wasiuzzaman, 2020). It was discovered that the GD has a significant influence on firm cash holdings only for firms with low‐cash holdings.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…As a result, the impact of diversification on firm performance in advanced economies context may vary. Finally, it is discovered that Malaysian firms have had stable reported performance over a long period of time (Gyan, 2017; Lee & Hooy, 2018; Wasiuzzaman, 2020). As a result, using Malaysian firms as a sample, the effect of diversification on performance can be quantified in considerable detail.…”

Section: Introductionmentioning

confidence: 99%

Global diversification, profitability and revenue creation: Evidence from an emerging economy

Subramaniam,

Wasiuzzaman,

Hosen

et al. 2024

Bus Strat Dev

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The aim of this article is to examine the impact of global diversification on firm performance. Data for this study were gathered from a total of 714 firms over a period of 5 years, from 2016 to 2020, totalling 2904 firm‐year observations. The relationship between global diversification and firm performance is analysed using ordinary least square (OLS) and quantile regression (QR) approaches. Based on OLS regression, global diversification negatively influences both the ability to create revenue and generate profits, with significant evidence only for revenue. On the other hand, QR analysis presents various perspectives of the relationship. Although global diversification is still negatively associated with the profitability of under‐performing firms, the relationship can be positive once the firms begin to perform well. In terms of revenue creation, its association with global diversification is found to be significantly negative for all levels of revenue. This demonstrates how global diversification can provide a distinctive platform for firms to generate profits even though their ability to make revenue decreases as their performance improves. Policy implications are discussed accordingly.

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Geographical diversification and corporate liquidity in Malaysia: a quantile regression approach

Cited by 4 publications

References 47 publications

Reciprocal Capital Structure and Liquidity Policy: Implementation of Corporate Governance toward Corporate Performance

Reciprocal Capital Structure and Liquidity Policy: Implementation of Corporate Governance toward Corporate Performance

Impact of board attributes and managerial ownership on cash holdings: empirical evidence using GMM and quantile regressions

Global diversification, profitability and revenue creation: Evidence from an emerging economy

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