اثر حوکمة مجلس الادارة على الاحتفاظ بالنقدية في الشرکات المساهمة المصرية "دراسة اختبارية"

نوع المستند : المقالة الأصلية

المؤلف

کلية التجارة - جامعة الزقازيق

المستخلص

This study examines the impact of board of director’s governance on cash holding in the Egyptian listed companies. Specifically, the resercher investigates the impact of board governance quality (using an index consists of three mechanisms, they are: board size, board independence, and chief executive officer “CEO” duality) on cash holding, and to investigate the impact of each mechanism on cash holding. The study investigates hypotheses on a sample of 82 Egyptian companies listed on the Cairo and Alexandria Stock Exchange (CASE) for the year 2009. Using regression analysis, the paper offers empirical evidence that board governance index (quality) has a negative relationship with cash holding in the Egyptian companies. This result means that companies with weaker board governance structure choose to stockpile more cash. This finding is consistent with the flexibility, empire building, and free cash flow hypotheses. Also, the empirical results appear to strongly support the negative effect of board governance mechanisms, in particular: board independence and CEO duality, on cash holding, with different measures. Finally, I perform a battery of sensitivity tests to assess the robustness of my findings.

الكلمات الرئيسية

الموضوعات الرئيسية


Ab. Rahman, A. H. and S. F. Muhamad. 2013. Corporate governance and firms cash holding in Malaysia. Proceeding of the International Conference on Social Science Research. 4-5 June, Penang, Malasia.
- 61 -
Aier, J. K., L. Chen, and M. Pevzner. 2014. Debtholders’ demand for conservatism: Evidence from changes in directors’ fiduciary duties. Journal of Accounting Research 52 (5): 993-1027.
Akguc, S. and J. J. Choi. 2013. Cash Holdings in Private and Public Firms: Evidence from Europe. Working paper, Department of Finance, Temple University, United States.
Al-Amri, K., M. Al-Busaidi, and S. Akguc. 2015. Conservatism and corporate cash holdings: A risk prospective. Investment Management and Financial Innovations 12 (1): 101-113.
Al-Dah, B. A. 2015. Determinants and Effects of Antitakeover Provisions on Corporate Governance and Firm Performance. Durham theses, Durham University, United Kingdom. Available at: http://etheses.dur.ac.uk/11041/
Almeida, H., M. Campello, and M. Weisbach. 2002. The Demand for Corporate Liquidity: A Theory and Some Evidence. Working paper, University of Illinois and New York University, United States.
Altman, E. I. 1968. Financial ratios, discriminant analysis, and the prediction of corporate bankruptcy. Journal of Finance 23 (4): 589-609.
Ammann, M., D. Oesch, and M. M. Schmid. 2011. Cash Holdings and Corporate Governance around the World. Working paper, New York University, New York, United States. Available at:
http://recanatibs.tau.ac.il/Eng/_Uploads/dbsAttachedFiles/AmmannOeschSchmid_Cash_Dec2011.pdf
Anedeberhan, J. 2012. Cash Holding and Corporate Governance: Evidence and implications from the Netherlands. Master Thesis, University of Amsterdam, Netherlands.
Bates, T. W., C.-H. Chang, and J. Chi. 2011. Why has the value of cash increased over time? Working paper, Arizona State University, United States. Available at:
http://www.ccfr.org.cn/cicf2012/papers/20120201014407.pdf
Bates, T. W., K. M. Kahle, and R. M. Stulz. 2009. Why do U.S. firms hold so much more cash than they used to? The Journal of Finance LXIV (5): 1985-2021.
Baumol, W. J. 1952. The transactions demand for cash: An inventory theoretic approach. Quarterly Journal of Economics 66 (4): 545-556.
Beiner, S. et al. 2004. Is board size an independent corporate governance mechanism? Kyklos 57 (3): 327-356.
Berle, A. and G. Means. 1932. The Modern Corporation and Private Property. New York, Macmillan. Available at:
http://disciplinas.stoa.usp.br/pluginfile.php/106085/mod_resource/content/1/DCO0318_Aula_0_-_Berle__Means.pdf
- 62 -
Bokpin, G. A., Z. Isshaq, and F. Aboagye-Otchere. 2011. Ownership structure, corporate governance and corporate liquidity policy: Evidence from the Ghana Stock Exchange. Journal of Financial Economic Policy 3 (3): 262-279.
Borhanuddin, R. I. and P. W. Ching. 2011. Cash holdings, leverage, ownership concentration and board independence: Evidence from Malaysia. Malaysian Accounting Review 10 (1): 63-88.
Boyle, G. W. and G. A. Guthrie. 2003. Investment, uncertainty and liquidity. Journal of Finance 58 (5): 2143-2166.
Brav, A. et al. 2005. Payout policy in the 21st century. Journal of Financial Economics 77 (3) 483-527.
Chahine, S. and I. Filatotchev. 2008. The effects of information disclosure and board independence on IPO discount. Journal of Small Business Management 46 (2): 219-241.
Chen, T.-J. and B.-Y. Wang. 2014. Corporate Governance and Cash Holdings: Empirical Evidence from an Emerging Market. Working paper, Yuan Ze University, Taoyuan, Taiwan.
Chen, Y. R. and W. T. Chuang. 2009. Alignment or entrenchment? Corporate governance and cash holdings in growing firms. Journal of Business Research 62 (11): 1200-1206.
Couderc, N. 2006. La detention d’actifs liquides par les entreprises: Quelles explications? (Corporate cash holdings: Financial determinants and consequences. With english summary). Revue Economique 57 (3): 485-495.
Daher, M. 2010. The Determinants of Cash Holdings in UK Public and Private Firms. PhD thesis, Lancaster University, United Kingdom.
Dittmar, A. and J. M. Mahrt-Smith. 2007. Corporate governance and the value of cash holdings. Journal of Financial Economics 83 (3): 599-634.
Dittmar, A. K., J. M. Mahrt-Smith, and H. Servaes. 2003. International corporate governance and corporate cash holdings. Journal of Financial and Quantitative Analysis 38 (1): 111-133.
Drobetz, W. and M. Grüninger. 2007. Corporate Cash Holdings: Evidence from Switzerland. Financial Markets and Portfolio Management 21 (3): 293-324.
Easterbrook, F. H. 1984. Two agency-cost explanations of dividends. American Economic Review 74 (4): 650-659.
Faleye, O. I. 2002. Essays in Corporate Governance and Control. PhD thesis, University of Alberta, Canada.
Faulkender, M. and R. Wang. 2006. Corporate financial policy and the value of cash. Journal of Finance 61 (4): 1957-1990.
Ferreira, M. A. and A. Vilela. 2004. Why do firms hold cash? Evidence from EMU countries. European Financial Management 10 (2): 295-319.
Finkelstein, S. and R. A. D’Aveni. 1994. CEO duality as a double-edged sword: How boards of directors balance entrenchment avoidance and unity of command. The Academy of Management Journal 37 (5): 1079-1108.
- 63 -
Garcia-Teruel, P. J., P. Martinez-Solano, and J. P. Sanchez-Ballesta. 2009. Accruals quality and corporate cash holdings. Accounting and Finance 49 (1): 95-115.
Gill. A. and C. Shah. 2012. Determinants of corporate cash holdings: Evidence from Canada. International Journal of Economics and Finance 4 (1): 70-79.
Goodstein, J., K. Gautam, and W. Boeker. 1994. The effects of board size and diversity on strategic change. Strategic Management Journal 15 (3): 241-250.
Greiner, A. J. 2013. Consequences of Real Earnings Management and Corporate Governance. PhD thesis, Florida Atlantic University, United States.
Gujarati, D. 2003. Basic Econometrics. 4th edition. McGrawHill, United States.
Hair, J. F. et al. 2006. Multivariate Data Analysis. 6th edition. Pearson Education, Harlow.
Harford, J. 1999. Corporate cash reserves and acquisitions. Journal of Finance 54 (6): 1969-1997.
Harford, J., S. A. Mansi, and W. F. Maxwell 2008. Corporate governance and firm cash holdings in the US. Journal of Financial Economics 87 (3): 535-555.
Huang, J. 2013. CEO Reputation and Corporate Cash Holdings. A thesis submitted to the UQ Business School, The University of Queensland, Australia.
Jensen, G. R., D. P. Solberg, and T. S. Zorn. 1992. Simultaneous determinants of insider ownership, debt, and dividend policies. Journal of Financial and Quantitative Analysis 27 (2): 247-263.
Jensen, M. C. 1986. Agency costs of free cash flow, corporate finance, and takeover. American Economic Review 76 (2): 323-339.
Jensen, M. C. 1993. The modern industrial revolution, exit, and the failure of internal control systems. Journal of Finance 48 (3): 831-880.
Jensen, M. C. and W. H. Meckling. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3 (4): 305-360.
Jia, Y. 2011. Essays on International Corporate Cash Holdings. PhD thesis. Wayne State University, United States.
John, K. and A. Knyazeva. 2006. Payout Policy, Agency Conflicts and Corporate Governance. Available at SSRN: http://ssrn.com/abstract=841064 or http://dx.doi.org/10.2139/ssrn.841064.
Kalcheva, I. and K. V. Lins. 2007. International evidence on cash holdings and expected managerial agency problems. The Review of Financial Studies 20 (4): 1087-1112.
Kesner, I. F. and D. L. Dalton. 1986. Boards of Directors and the checks and (im)balances of corporate governance. Business Horizons 29 (5): 17-23.
- 64 -
Keynes, J. M. 1936. The General Theory of Employment. In: Interest and Money. London, Harcourt Brace.
Killi, A., M. S. Rapp, and T. Schmid. 2011. Can Financial Flexibility Explain the Debt Conservatism Puzzle? Cross-Country Evidence from Listed Firms. Working paper, Department of Financial Management and Capital Markets, Technische Universität München. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1814182
Kim, C. S., D. C. Mauer, and A. E. Sherman. 1998. The determinants of corporate liquidity: Theory and evidences. Journal of Financial and Quantitative Analysis 33 (3): 335-358.
Klein, A. 2002. Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics 33 (3): 375-400.
Kusnadi, Y. 2003. Corporate Cash Holdings, Board Structure and Ownership Concentration: Evidence from Singapore. Working paper, Hong Kong University of Science and Technology, Hong Kong.
Kusnadi, Y. 2006. Corporate Governance Mechanisms and Corporate Cash Holdings. Working paper, University of Science and Technology, Hong Kong.
Le, N. 2012. Essays in Empirical Corporate Finance. PhD thesis, Faculty of the Graduate School of the University of Colorado, United States.
Lee, C. et al. 1992. Board composition and shareholder wealth: The case of management buyouts. Financial Management 21 (1): 58-72.
Lee, J. 2012. The Role of Accounting Conservatism in Firms’ Financial Decisions. Working paper, Kellogg School of Management, Northwestern University, United States.
Lee, K.-W. and C.-F. Lee. 2009. Cash holdings, corporate governance structure and firm valuation. Review of Pacific Basin Financial Markets and Policies 12 (3): 475-508.
Lie, E. 2000. Excess funds and agency problems: An empirical study of incremental cash disbursements. The Review of Financial Studies 13 (1): 219-248.
Lipton, M. and J. Lorsch. 1992. A modest proposal for improved corporate govemance. Business Lawyer 48 (1): 59-77.
Louis, H., A. X. Sun, and O. Urcan. 2012. Value of cash holdings and accounting conservatism. Contemporary Accounting Research 29 (4): 1249-1271.
Mikkelson, W. H. and M. M. Partch. 2003. Do persistent large cash reserve hinder performance? Journal of Financial and Quantitative Analysis 38 (2): 275-294.
Miller, M. H. and D. Orr, 1966. A model of the demand for money by firms. Quarterly Journal of Economics 80 (3): 413-435.
- 65 -
Minton, B. A. and K. H. Wruck. 2001. Financial Conservatism: Evidence on Capital Structure from Low Leverage Firms. Working paper, the Ohio State University, United States.
Morais, F. and P. Silva. 2013. Determinants of cash holdings in the accommodation industry. Tourism and Hospitality International Journal 1 (1): 95-136.
Mulligan, C. B. 1997. Scale economies, the value of time, and the demand for money: Longitudinal evidence from firms. Journal of Political Economy 105 (5): 1061-1079.
Myers, S. and N. Majluf. 1984. Corporate financing decisions when firms have investment information that investors do not. Journal of Financial Economics 13 (2): 187-221.
Myers, S. C. and R. G. Rajan. 1998. The paradox of liquidity. The Quarterly Journal of Economics 113 (3): 733-771.
Nguyen, P. 2006. How Sensitive are Japanese Firms to Earnings Risk? Evidence from Cash Holdings. Working paper, University of New South Wales, Australia. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=889502&download=yes
Opler, T. et al. 1999. The determinants and implications of corporate cash holdings. Journal of Financial Economics 52 (1): 3-46.
Ozkan, A. and N. Ozkan. 2004. Corporate cash holdings: An empirical investigation of UK companies. Journal of Banking and Finance 28 (9): 2103-2134.
Papaioannou, G. J., E. Strock, and N. G. Travlos. 1992. Ownership structure and corporate liquidity policy. Managerial and Decision Economics 13 (4): 315-322.
Penman, S. H., S. A. Richardson, and A. I. Tuna. 2007. The Book-to-Price Effect in Stock Returns: Accounting for Leverage. Journal of Accounting Research 45 (2): 427-467. Pinkowitz, L. F. and R. Williamson. 2002. What is a Dollar worth? The Market Value of Cash Holdings. Working paper, Georgetown University, Washington, United States.
Pinkowitz, L., R. Stulz, and R. Williamson. 2006. Does the contribution of corporate cash holdings and dividends to firm value depend on governance? A cross-country analysis. Journal of Finance 61 (6): 2725-2752.
Rechner, P. L. and D. R. Dalton. 1991. CEO duality and organizational performance: A longitudinal analysis. Strategic Management Journal 12 (2): 155-160.
Rencher, A. C. 2002. Methods of Multivariate Analysis. 2nd ed. John Wiley & Sons, INC., New York.
- 66 -
Riddick, L. A. and T. M. Whited. 2009. The corporate propensity to save. Journal of Finance 64 (4): 1729-1766.
Rizeanu, S. 2011. Essays in Corporate Governance. PhD thesis, Darla Moore School of Business, University of South Carolina, United States.
Smith, A. 1826. An Inquiry into the Nature and Causes of the Wealth of Nations. The Making of the Modern World. London. Available at:
https://www.marxists.org/reference/archive/smith-adam/works/wealth-of-
Stulz, R. 1990. Managerial discretion and optimal financing policies. Journal of Financial Economics 26 (1): 3-27.
Sun, Q. 2009. Two Essays on Earnings Quality and Corporate Decisions. PhD thesis, Faculty of the College of Business and Public Administration, Old Dominion University, United States.
Sun, Q., K. Yung, and H. Rahman. 2012. Earnings quality and corporate cash holdings. Accounting and Finance 52 (2): 543-571.
Wai, W. Y. and Y. Zhu. 2013. The Effect of Corporate Governance on Cash Holdings: Evidence from Hong Kong. Working paper, Hong Kong Baptist University, Hong Kong.
Yermack, D. 1996. Higher market valuation companies with a small board of directors. Journal of Financial Economics 40 (2): 185-212.